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Minnesota income tax brackets for 2018

ST. PAUL, Minn. — The Minnesota Department of Revenue announced the adjusted 2018 individual income tax brackets. For tax year 2018, the state's individual income tax brackets will change by 1.987 percent from tax year 2017. This annual adjustment will prevent taxpayers from paying taxes at a higher rate solely because of inflationary changes in their income.

Indexing for inflation of individual income tax brackets is required by law and first began in 1979. The brackets are adjusted annually by an inflation factor, rounded to the nearest $10, based on the change in the U.S. Consumer Price Index for all urban consumers. The adjustment does not change the Minnesota tax rate that applies to each income bracket.

The brackets apply to tax year 2018. Taxpayers who make quarterly payments of estimated tax should use the following rate schedule to determine their payments, which are due starting in April 2018.

2018 Minnesota Income Tax Brackets:

• 5.35 percent for those filing married joint and earning up to $37,850 annually, filing married separate and earning up to $18,930 annually, filing single and earning up to $25,890 annually, and filing as head of household and earning up to $31,880 annually.

• 7.05 percent for those filing married joint and earning between $37,851 and $150,380 annually, filing married separate and earning between $18,931 and $ 75,190 annually, filing single and earning between $25,891 and $ 85,060 annually, and filing as head of household and earning between $31,881 and $128,090 annually.

• 7.85 percent for those filing married joint and earning between $150,381 and $266,700 annually, filing married separate and earning between $75,191 and $133,350, filing single and earning between $85,061 and $160,020 annually, and filing as head of household and earning between $128,091 and $213,360 annually.

• 9.85 percent for those filing married joint tax returns and earning $266,700 and over, filing married separate and earning $133,350 and over, filing single and earning $160,020 and over, and filing as head of household and earning $213,360 and over.

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