Minnesota Retirement Tax Calculator: Social Security Subtraction and 2026 Brackets
Minnesota taxes pensions, IRA and 401(k) withdrawals at 5.35% to 9.85% in 2026. Federally taxed Social Security is subtracted in full until AGI passes $110,780 joint or $86,410 single, military retirement pay is subtracted, and public pensions earned without Social Security coverage get up to $27,690 joint or $13,850 single.
Checked against sources 3 official sources linked How we verify
Minnesota resident retirement worksheet
Minnesota · 2026 estimate
Waiting on a figure
- Minnesota taxable income
- —
- Simplified Social Security subtraction
- —
- Alternate Social Security subtraction
- —
- Larger permitted benefit subtraction
- —
- Included benefits left after subtraction
- —
- Simplified phaseout steps
- —
Calculation scopeConfirm the prepared full-year resident worksheet conditions
Illustrative defaults. Enter approved taxable amounts and confirm eligibility. The result covers the displayed worksheet conditions; a complete return may require other income, adjustments, deductions or credits.
Current-year rates and primary-source eligibility reviewed October 1, 2026. Use the federal tool separately; these inputs do not prepare a complete federal or state return.
Reviewed October 12, 2026. Compare both Minnesota Social Security subtraction methods for 2026
What Minnesota taxes in retirement
-
Social Security
Partly taxedSubtraction phases out above $110,780 joint / $86,410 single AGI.
-
Pensions
Partly taxedPrivate pensions taxed; qualified public pensions have their own income test.
-
IRA & 401(k) withdrawals
TaxedTaxed under the graduated brackets.
-
Wages from work
TaxedGraduated 2026 brackets.
Partly taxed: limits by age, plan, owner or income apply. Military retirement is covered in the guide. How these labels work.
Minnesota retirement tax figures and sources
| Rule | Minnesota figure | Effective | Primary source |
|---|---|---|---|
| Rates on pensions, IRA and 401(k) withdrawals | 5.35%, 6.80%, 7.85%, 9.85% | Tax year 2026 | Minnesota Revenue 2026 rates and brackets |
| Where each higher rate starts | Joint $48,701 · $193,481 · $337,931; single $33,311 · $109,431 · $203,151 | Tax year 2026 | Minnesota Revenue 2026 rates and brackets |
| Social Security, simplified method | All federally taxed benefits, cut by 10% for each $4,000 of AGI (or part of it) above $110,780 joint or surviving spouse and $86,410 single or head of household; $2,000 steps above $55,390 when married filing separately | 2026 thresholds | Minnesota Revenue 2026 inflation-adjusted amounts |
| Social Security, alternate method | Up to $5,840 joint, $4,560 single, $2,920 separate, less 20% of provisional income above $88,630 / $69,250 / $44,315; the larger of the two methods applies | Amounts not indexed | Minn. Stat. § 290.0132, subd. 26 |
| Public pensions earned without Social Security coverage | Up to $27,690 joint or $13,850 for other filers, cut by 10% for each $2,000 of AGI above $110,780 / $86,410 / $55,390 | 2026 amounts | Minnesota Revenue 2026 inflation-adjusted amounts |
| U.S. military retirement pay | Subtracted to the extent in federal AGI, unless the veterans’ credit under § 290.0677 is claimed instead | Continuing rule | Minn. Stat. § 290.0132, subd. 21 |
| Standard deduction | $30,600 joint or surviving spouse · $15,300 single; plus $1,600 per married spouse, or $2,000 single or head of household, at 65 or older or blind | Tax year 2026 | Minnesota Revenue 2026 inflation-adjusted amounts |
Compare both Minnesota Social Security subtraction methods for 2026
Estimate Minnesota retirement tax with current benefit subtractions, actual provisional income and public pension eligibility. See how the phaseout changes tax.
Minnesota’s Social Security subtraction is the larger result from its simplified and alternate methods. The 2026 inflation table sets simplified AGI thresholds of $110,780 for joint or qualifying surviving-spouse filers, $86,410 for single or head-of-household filers, and $55,390 for separate filers. Use that tax-year table: the general benefit webpage still displays lower 2025 thresholds.
The simplified method starts with federally included Social Security and reduces it by ten percentage points for every $4,000 of AGI above the threshold, including a fraction of that interval. Separate filers use $2,000 intervals. Round the number of intervals upward, then stop the reduction at 100%. At the exact threshold no reduction applies; one dollar above it starts the first ten-percent reduction.
The alternate method limits the subtraction to included benefits or a reduced maximum. The 2026 table lists maximums of $5,840 for joint or surviving-spouse returns, $4,560 for single or head-of-household returns, and $2,920 for separate returns. Reduce that maximum by 20% of prepared Minnesota provisional income above $88,630, $69,250 or $44,315 respectively, with a zero floor. Enter the applicable Minnesota provisional figure separately; the federal benefit widget does not prepare that state input.
In the illustrative joint example, federal AGI is $120,000, included Social Security is $25,500 and prepared Minnesota provisional income is $109,500. AGI exceeds $110,780 by $9,220, so three simplified phaseout steps leave a $17,850 subtraction. The alternate calculation leaves $1,666. Use the larger $17,850 amount. With approved state deductions of $33,800 and no other modifications, taxable income is $68,350. The 2026 brackets produce an ordinary tax estimate of $3,941.65 before credits and additional taxes.
Keep the state’s starting AGI, approved deductions and other modifications distinct from federal taxable income. The example’s $33,800 deduction represents the published joint standard deduction plus two age additions; the calculator does not establish either spouse’s actual eligibility or calculate deduction limitations. Qualified public pensions may require service-month allocation and their own income test. Military exclusions, age or disability relief, losses, credits and part-year residency require separate preparation. Do not claim the same benefit dollars under two subtraction headings.
Confirm the resident worksheet scope before computing the example. If Minnesota provisional income is blank, the simplified result can remain visible but the alternate method, selected subtraction and state tax stay unresolved. The automatic state calculation requires a confirmed case without railroad retirement benefits. M1M coordinates the railroad exemption with both Social Security methods; use the full worksheet for those cases. The independent federal worksheet and prepared final-state-liability option remain available for cases that need the full return.
Prepare these Minnesota records
- 2026 AGI thresholds and rounded-up phaseout intervals
- Both subtraction methods and the prepared Minnesota provisional amount
- Approved Minnesota deductions, exemptions and other modifications
- Public-pension service allocation, military / railroad categories and separate credits
- No railroad benefits in the automatic state scope; full M1M for railroad offsets
Official Minnesota source. Published 2026 inflation table and January 2026 rate schedule; continuing statute 290.0132 subdivision 26; other deductions need independent eligibility review.
Calculate the federal portion separately
Use the federal retirement-tax worksheet to prepare federally included benefits and ordinary income. Its federal deduction and rates do not replace the Minnesota rules above.
Compare Minnesota with nearby states
Wisconsin, Iowa, South Dakota and North Dakota border Minnesota. Run each one’s worksheet with the same household figures before deciding where a move would leave you.
Retirement tax calculators for all 50 states and DCInputs and calculation scopeSources and tax yearsReport a correction
Updated / verified · Retirement Income Tax Calculator Editorial Team