Minnesota 2017 Income Tax Brackets Released
St Paul (KROC AM News) - Income tax brackets for Minnesota individual taxpayers have been adjusted for inflation.
The brackets for tax year 2017 will increase by .8 percent, nearly double the previous adjustment.
This annual adjustment is required under state law. It prevents taxpayers from paying taxes at a higher rate due to inflationary changes in their income. The brackets are adjusted annually by an inflation factor 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.
Taxpayers who make quarterly payments of estimated tax should use the following rate schedule to determine their payments, which are due starting in April 2017.
The adjustment shows the income threshold for married taxpayers in the lowest bracket who file a joint return will rise from $36,820 tro $37,110.
The change in the top bracket will climb from $259,420 to $261,510.