Retire in Minnesota: 2026 Tax & Cost of Living Guide
One of the highest top income tax rates (9.85%) and a low-threshold estate tax ($3M). SS exempt for most middle-income retirees as of 2023.
State income tax
Progressive — top rate 9.85%
Social Security
Taxed
Estate tax
Yes
Property tax
1.05%
How Minnesota Taxes Retirement Income
- Social Security
- Fully exempt for single filers with AGI under $78K / $100K joint; partial exemption above
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
Data not yet verified for this state. Consult a state tax professional.
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $4,925 | 9.8% |
| $100,000 | $9,850 | 9.8% |
| $200,000 | $19,700 | 9.8% |
Estate & Inheritance Tax
State Estate Tax
Exemption: $3,000,000 · Top rate: 16%
Federal estate tax exemption is $13.61M (2024) — Minnesota's lower threshold means more estates are subject to state tax than federal.
We don't have detailed cost-of-living data for a city in Minnesota yet. See our city guides for 300+ other cities worldwide, or compare Minnesota against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.