Minnesota 2025-2026 Regular Session

Minnesota House Bill HF812

Introduced
2/17/25  

Caption

Individual income tax rates modified, and zero bracket provided.

Impact

The proposed changes to HF812 would have a significant impact on the state's tax system, affecting both individual taxpayers and the overall revenue collection for Minnesota. By adjusting the income tax brackets and introducing a zero bracket, the legislation seeks to provide relief to lower and middle-income earners, potentially increasing disposable income for these groups. Additionally, the annual inflation adjustments included in the bill would ensure that tax brackets keep pace with economic changes, which proponents argue will create a more equitable tax system.

Summary

HF812 is a legislative proposal aiming to modify individual income tax rates in Minnesota. The bill outlines specific changes to the tax brackets, particularly for unmarried individuals and married couples filing jointly. It establishes a zero tax bracket, which aims to alleviate tax burdens for individuals earning within certain income limits. The new tax structure is expected to provide a clearer framework for taxpayers and simplify the overall tax calculation process for individuals and families living in the state.

Contention

Debate over HF812 has highlighted points of contention among lawmakers regarding the implications of the tax rate modifications. Critics have raised concerns that such changes could lead to budgetary shortfalls if tax revenues decrease significantly due to the proposed reductions. Proponents of the bill contend that the adjustments are necessary to make the tax system more fair and responsive to the needs of Minnesota residents. The discussion also centers around potential impacts on state-funded services, emphasizing the need for careful budget planning in light of varying revenue streams.

Companion Bills

MN SF1195

Similar To Zero bracket provision

Previously Filed As

MN HF4386

Individual income tax rates modified, and zero bracket provided.

MN HF442

Individual income tax provisions modified, and income tax rates and brackets modified.

MN SF678

Income tax rates and brackets modification

MN HF723

Individual income tax provisions modified, and individual income tax rates reduced.

MN HF2820

Individual income tax provisions modified, and tax rates modified.

MN HF936

Individual income tax provisions modified, and income tax rates decreased.

MN HF1249

Individual income tax provisions modified, and income tax rates decreased.

MN HF1248

Individual income tax provisions modified, and income tax rates decreased.

MN HF1515

Individual income tax provisions modified, and all individual income tax rates reduced by one percentage point.

MN HF977

Individual income tax provisions modified, and all individual income tax rates reduced by one percentage point.

Similar Bills

MN HF5040

Pensions supplemental budget bill.

MN HF20

Wage credits modified and reimbursement provided, general fund transfers authorized, unemployment insurance aid provided, report required, and money appropriated.

MN SF4643

Omnibus Pension bill

MN SF32

Wage credits modification and reimbursement provision; unemployment insurance aid establishment and appropriation

MN HF31

Individual income and corporate franchise tax provisions modified, and federal tax provisions conformity provided.

MN SF25

Certain conformity provision to federal tax provisions

MN SF3127

Property taxes and individual income taxes modification

MN HF2976

Property taxes and individual income taxes modified, homestead property tax provisions modified, state general levy reduced, unlimited Social Security subtraction allowed, income tax rates decreased, temporary refundable child credit established, direct payments to individuals provided, and money appropriated.