Every year since 1941, the Tax Foundation releases “Facts and Figures,” a “one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.”
As you prepare your taxes this month, consider these sobering facts for Minnesota residents.
Released last week, find out how Minnesota is doing and why tax competitiveness matters, despite what Gov. Tim Walz and the DFL leadership at the Capitol say. Minnesota has the fifth-highest tax collection per capita in the U.S. Only Vermont, California, Connecticut, and Hawaii, take more from their taxpayers than Minnesota does.
Check out the Midwest rankings of tax collections per capita:
- 5th – Minnesota, $5,571
- 8th – North Dakota, $5,044
- 22nd – Wisconsin, $3,782
- 24th – Iowa, $3,701
- 46th – South Dakota, $2,401
This should come as no surprise, either: Minnesota’s tax system ranks 45th overall out of 50 states on the Tax Foundation’s 2022 State Business Tax Climate Index.
From our friends at the Tax Foundation:
How does Minnesota’s tax code compare? Minnesota has a graduated individual income tax, with rates ranging from 5.35 percent to 9.85 percent. Minnesota also has a 9.80 percent corporate income tax rate. Minnesota has a 6.875 percent state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of 7.49 percent.
