Minnesota tax brackets adjusted upward for 2024

St. Cloud, Minn. (KNSI) – Tax brackets are being adjusted upwards by over 5% to help compensate for inflation.

The Minnesota Department of Revenue makes the changes to ensure that people aren’t bumped up a bracket for making more money in what is known as nominal terms. That means their income is higher than the year before without seeing their overall purchasing power increase.

Individual income tax brackets have been indexed for inflation since 1979 as required by law. The threshold for an individual standard deduction will also be moved upward due to the shift to $14,575. For couples, it is $29,150.

A single filer would be taxed at 5.35% for the first $31,690 of income. The highest bracket, 9.85%, would apply for single filers on income above $193,240.

Some taxpayers make quarterly payments. The new brackets would apply to them first, beginning in April 2024. The changes are based on the chained Consumer Price Index. That measure is calculated by the federal government and is designed to better reflect differences in how consumers spend on certain items over time.

To check out all of the new tax brackets, visit the Minnesota Department of Revenue’s website.

Story by Grant Dossetto / KNSI