{
  "$comment": "Minnesota 2025: four brackets (5.35%-9.85%), standard deduction with high-income limitation, dependent exemption with step phase-out; no employee payroll programmes (Paid Leave starts 2026).",
  "country": "us",
  "jurisdiction": "us-mn",
  "taxYear": "2025",
  "period": {
    "start": "2025-01-01",
    "end": "2025-12-31",
    "tz": "America/Chicago"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 2,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": "32570",
            "rate": "0.0535"
          },
          {
            "upTo": "106990",
            "rate": "0.068"
          },
          {
            "upTo": "198630",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ],
        "mfj": [
          {
            "upTo": "47620",
            "rate": "0.0535"
          },
          {
            "upTo": "189180",
            "rate": "0.068"
          },
          {
            "upTo": "330410",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ],
        "mfs": [
          {
            "upTo": "23810",
            "rate": "0.0535"
          },
          {
            "upTo": "94590",
            "rate": "0.068"
          },
          {
            "upTo": "165205",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ],
        "hoh": [
          {
            "upTo": "40100",
            "rate": "0.0535"
          },
          {
            "upTo": "161130",
            "rate": "0.068"
          },
          {
            "upTo": "264050",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ]
      },
      "deductions": [
        {
          "type": "fixed",
          "id": "standard-deduction-3pct-part",
          "label": "Standard deduction (part reduced 3% above the first threshold)",
          "amount": {
            "single": "2740.5",
            "mfj": "2740.5",
            "mfs": "1370.25",
            "hoh": "2740.5"
          },
          "phaseout": {
            "single": {
              "threshold": "238950",
              "rate": "0.03",
              "floor": "0"
            },
            "mfj": {
              "threshold": "238950",
              "rate": "0.03",
              "floor": "0"
            },
            "mfs": {
              "threshold": "119475",
              "rate": "0.03",
              "floor": "0"
            },
            "hoh": {
              "threshold": "238950",
              "rate": "0.03",
              "floor": "0"
            }
          }
        },
        {
          "type": "fixed",
          "id": "standard-deduction",
          "label": "Standard deduction (remainder, reduced 10% above the second threshold, at most by 80%)",
          "amount": {
            "single": "12209.5",
            "mfj": "27159.5",
            "mfs": "13579.75",
            "hoh": "19759.5"
          },
          "phaseout": {
            "single": {
              "threshold": "330300",
              "rate": "0.1",
              "floor": "2990"
            },
            "mfj": {
              "threshold": "330300",
              "rate": "0.1",
              "floor": "5980"
            },
            "mfs": {
              "threshold": "165150",
              "rate": "0.1",
              "floor": "2990"
            },
            "hoh": {
              "threshold": "330300",
              "rate": "0.1",
              "floor": "4500"
            }
          }
        },
        {
          "type": "perPerson",
          "id": "dependent-exemption",
          "label": "Dependent exemption",
          "filer": {
            "single": "0",
            "mfj": "0",
            "mfs": "0",
            "hoh": "0"
          },
          "perDependent": "5200",
          "phaseout": {
            "single": {
              "threshold": "239050",
              "rate": "0.0416",
              "floor": "0",
              "reductionRounding": {
                "unit": "104",
                "mode": "up"
              }
            },
            "mfj": {
              "threshold": "358550",
              "rate": "0.0416",
              "floor": "0",
              "reductionRounding": {
                "unit": "104",
                "mode": "up"
              }
            },
            "mfs": {
              "threshold": "179275",
              "rate": "0.0832",
              "floor": "0",
              "reductionRounding": {
                "unit": "104",
                "mode": "up"
              }
            },
            "hoh": {
              "threshold": "298800",
              "rate": "0.0416",
              "floor": "0",
              "reductionRounding": {
                "unit": "104",
                "mode": "up"
              }
            }
          },
          "phaseoutPer": "perPerson"
        }
      ],
      "credits": []
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": []
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "mn-dependent-exemption-steps",
      "field": "params.incomeTax.deductions",
      "description": "Above the threshold the dependent exemption falls by 104 per dependent for each $2,500 (or fraction) of AGI, so taxable income jumps at each step and net pay can fall by up to about $10.24 per dependent per step."
    }
  ],
  "notModelled": [
    "Minnesota child tax credit and working family credit (refundable; schema credits are nonrefundable)",
    "Marriage credit (two earners), K-12, dependent care and other credits",
    "Additional standard deduction for age 65+/blind; itemized deductions",
    "Minnesota has no local income taxes"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2024-12/inflation-adjusted-amounts-2025.pdf",
      "title": "Minnesota DOR — Tax Year 2025 inflation-adjusted amounts (calendar tax year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "MoneyOtter computes exact bracket tax and rounds half-up to the cent (MN tax tables use $10/$20 bands)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.kind",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2024-12/inflation-adjusted-amounts-2025.pdf",
      "title": "State personal income tax on wages computed by rate schedule — Tax Year 2025 Inflation-Adjusted Amounts — 290.06 subd. 2c bracket thresholds by filing status",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2024-12/inflation-adjusted-amounts-2025.pdf",
      "title": "Tax Year 2025 Inflation-Adjusted Amounts — 290.06 subd. 2c bracket thresholds by filing status",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.06",
      "title": "Minn. Stat. 290.06 subd. 2c: rates 5.35%, 6.8%, 7.85%, 9.85%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "MN DOR: Minnesota income tax rates and brackets",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2024-12/inflation-adjusted-amounts-2025.pdf",
      "title": "Tax Year 2025 Inflation-Adjusted Amounts — 290.0123 standard deduction and limitation thresholds; 290.0121 dependent exemption and disallowance thresholds",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.0123",
      "title": "Minn. Stat. 290.0123 subd. 5: reduction = lesser of 3% of AGI over threshold 1 (up to threshold 2) plus 10% over threshold 2, or 80% of the deduction; MFS uses half the AGI amounts",
      "retrieved": "2026-10-07",
      "note": "Modelled exactly as two pieces: 3% x (T2 - T1) tapering at 3% from T1 to zero, plus the remainder tapering at 10% from T2 with a floor of 20% of the deduction. The $1,000,000 (indexed) full-80% rule is already reached by the 10% taper at a lower AGI for every status."
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.0121",
      "title": "Minn. Stat. 290.0121: dependent exemption reduced by 2 percentage points per $2,500 ($1,250 MFS) or fraction of federal AGI over the threshold",
      "retrieved": "2026-10-07",
      "note": "Schema gap: the taper reduces the total dependent exemption by 104 per step (2% of ONE exemption), exact for one dependent; with k dependents the statute reduces k x 104 per step, so the model overstates the exemption for families with 2+ dependents above the threshold (full phase-out at threshold + $125,000 regardless of k)."
    },
    {
      "field": "params.incomeTax.incomeBase",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "Form M1 starts from federal AGI; wages-only taxpayer: state wages",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2024-12/inflation-adjusted-amounts-2025.pdf",
      "title": "No nonrefundable personal credit; refundable child tax credit / working family credit not modelled",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "Minnesota starts from federal AGI and follows federal exclusions for 401(k)/403(b)/457(b), HSA, FSA and cafeteria-plan amounts",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://www.revisor.mn.gov/statutes/cite/268B.14",
      "title": "Minnesota Paid Leave premiums begin 1 Jan 2026; no employee-paid state payroll programme in 2025",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.0121",
      "title": "Minn. Stat. §290.0121 subd. 3 — the dependent exemption is reduced by the applicable percentage (2% per $2,500 or part, 4% per $1,250 MFS) of the TOTAL exemption, i.e. per dependent",
      "retrieved": "2026-10-08"
    }
  ]
}