Income tax brackets for tax year 2013
The Minnesota Department of Revenue recently announced that the state's individual income tax brackets for tax year 2013 will expand by 2.57 percent. State law requires the department to adjust the brackets to compensate for increases in inflation.
Expanding the brackets prevents taxpayers from paying higher taxes solely because of inflationary increases in their income. Since tax year 2000, Minnesota's income tax brackets have expanded 38 percent as a result of inflation.
The bracket adjustments are based on the change in the U.S. Consumer Price Index for all urban consumers for the average of the 12 months ending August 2012 compared to the average of 12 months ending August 1999.
The department adjusts the brackets each year by the inflation factor and rounds the result to the nearest $10.
The brackets apply to tax year 2013. Taxpayers who make quarterly payments of estimated tax should use the following rate schedule to determine their payments, which are due starting in April 2013; Minnesota's tax rates remain the same.
Married, filing jointly: 5.35 percent, $0-$35,480; 7.05 percent, $35,481-$140,960; 7.85 percent, $140,961 and higher.
Married, filing separately: 5.35 percent, $0-$17,740; 7.05 percent, $17,741-$70,480; 7.85 percent, $70,481 and higher.
Head of household: 5.35 percent, $0-$29,880; 7.05 percent, $29,881-$120,070; 7.85 percent, $120,071 and higher.
Single: 5.35 percent, $0-$24,270; 7.05 percent, $24,271-$79,730; 7.85 percent, $79,731 and higher.
The marginal tax rate is the rate of tax paid on a particular range of incomes.