MN
Static Conformity — Needs Legislation
9.85%
Top state income tax rate
medium
SALT deduction impact
OBBBA in Minnesota: What You Need to Know
Minnesota uses static conformity and requires legislation to adopt OBBBA. High top rate means state non-conformity on tips/overtime is significant for affected workers.
OBBBA Provision Impact for Minnesota Residents
| OBBBA Provision | Federal Impact | MN State Impact |
|---|---|---|
| Tip Income Exemption ($25k) | ✅ Exempt from federal income tax | ⚠️ Still taxed at 9.85% until state acts |
| Overtime Exemption | ✅ All OT exempt from federal tax | ⚠️ Still taxed at state level |
| SALT Cap ($40k married) | ✅ Deduct up to $40k on federal return | 🟡 Moderate benefit |
| Child Tax Credit ($2,500) | ✅ Federal CTC expanded | No direct state effect |
| Senior Deduction ($4,000) | ✅ Additional $4k deduction | ⚠️ Likely not adopted |
| Trump Accounts | ✅ $1,000 federal seed + tax-free growth | Federal program — state tax treatment varies |
Calculate Your Minnesota Tax Savings
Enter your income, tips, overtime, and family details to see your federal OBBBA savings.
Use the OBBBA Calculator →