Is Social Security Taxed in Minnesota in 2026?
Is Social Security taxed in Minnesota in 2026? Yes. Yes, but Minnesota allows a substantial Social Security exemption for single filers earning under $84,490 ($108,320 for joint filers), which phases out gradually.
Income thresholds shown adjust annually for inflation. Figures reflect the most recently available data — always confirm the current-year threshold with your state's Department of Revenue before filing.
How Minnesota's Social Security Tax Rule Works
Fully exempt below the threshold; the exemption phases out gradually (10% reduction per $4,000 of income above the threshold) rather than disappearing all at once.
Minnesota Gradual Phaseout Subtraction
Calculate Your Federal Taxable Benefits
State taxes on Social Security start with your federally taxable benefits. Use our free interactive tool to compute your Combined Income threshold.
Compare With Other Social Security Taxing States
Only 8 states in the US tax Social Security in 2026. Explore how other taxing states structure their exemptions:
Frequently Asked Questions (Minnesota)
Is Social Security taxed in Minnesota?
Yes, Minnesota is one of only 8 states that levy state income tax on Social Security benefits in 2026. However, Yes, but Minnesota allows a substantial Social Security exemption for single filers earning under $84,490 ($108,320 for joint filers), which phases out gradually.
What is the top state income tax rate in Minnesota?
Minnesota's top marginal income tax rate for 2026 is 9.85%. The actual tax paid on Social Security benefits depends on your taxable threshold and eligible deductions.
How can retirees in Minnesota minimize Social Security tax?
Retirees can minimize state tax on benefits by managing their Modified Adjusted Gross Income (MAGI) through strategic Roth IRA distributions, timing traditional retirement account withdrawals, and maximizing age-specific deductions.