Breaking State Tax News
Governor Walz Proposes Major Tax increases
January 27, 2021
Yesterday, Minnesota Governor Tim Walz (DFL) proposes significant tax increases including:
New fifth income tax bracket with a tax rate of 10.85% for incomes over $500,000 (single) and $1 million (married filing jointly). This would raise Minnesota taxes higher than New York and just under California and Hawaii.
Increase the corporate tax rate to 11.25% making Minnesota the second highest tax rate in the nation.
A new capital gains surcharge on individuals, trusts, and estates an additional 1.5% on capital gains and dividends on income over $500,000 to $1 million and 4% on income over $1 million. As such, taxpayers earning more than $1 million would pay 14.85% on their capital gains (highest in the nation).
Taxing certain repatriated foreign income tax, retroactive to tax year 2016.
Increasing estate taxes by reducing the state tax exclusion at $2.7 million.
There has never been a better time to consider changing domicile. Contact SALT Partners at 612-803-3539 if you are interested in changing your domicile.