The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2018

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.


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The Bottom Line
Map of Minnesota

Least Tax-Friendly

The North Star State hits hard with income tax. It added a new top income tax rate of 9.85% in 2013. But what makes Minnesota really stand out is that its lowest income tax rate is 5.35%. And thanks to the federal tax overhaul, it could get worse. Minnesota uses federal taxable income as the starting point for calculating state taxes. An estimated 300,000 Minnesotans will pay higher state taxes due to the loss of personal and dependent exemptions on their federal tax returns.

Property taxes are on the high side. It’s one of Kiplinger's top ten least tax-friendly states.

Sales Tax

6.875% state levy. Localities can add as much as 2%, with an average combined rate of 7.43%, according to the Tax Foundation. Most clothing and footwear are exempt.

Income Tax Range

Low: 5.35% (on less than $25,890 of taxable income for single filers and on less than $37,850 for joint filers)

High: 9.85% (on more than $160,020 of taxable income for single filers and on more than $266,700 for joint filers)

See’s Retiree Tax Map to learn how Minnesota taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.29 per gallon.
Diesel: $0.29 per gallon.

Property Taxes

The median property tax on Minnesota’s median home value of $191,500 is $2,234.

See’s Retiree Tax Map for details on tax breaks for seniors in Minnesota.

Vehicle Taxes

6.5% sales tax is due at purchase (slightly below general sales tax, and no local tax is computed).

Sin Taxes

Cigarettes and little cigars: $3.00 per pack
Premium cigars: 90% of the wholesale price with a $0.50 per cigar cap
Moist snuff: 95% of the wholesale price, or at least $3.04 per container
Other tobacco products: 95% of the wholesale price

Beer: $0.49 per gallon
Wine: $1.20 per gallon
Liquor: $8.96 per gallon
Vapor products: 95% of wholesale price.

Travel Taxes

Hotel: There is no statewide lodging tax. Localities, however, can add their own lodging taxes. Sales tax is also due. In Minneapolis, this adds up to 13%.

Rental cars: 9.2%, plus sales tax.

Taxes On Wireless Service


Inheritance and Estate Taxes

Minnesota’s estate-tax exemption of $2.4 million in 2018 will rise to $2.7 million in 2019 and $3 million in 2020. But taxable gifts made within three years prior to death are considered part of the estate. Rates range between 5.6% - 16%.

Oddball Tax

The champagne lifestyle will cost you in Minnesota. Bubbly is taxed six times as much as most still wines.

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