Retirement income in Minnesota
Varies
Does Minnesota Tax Retirement Income?
Short answer: Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.
Government pensions: For 2026, a public pension subtraction of up to $13,850 single / $27,690 joint applies only to listed public plans not covered by Social Security. It phases out 10% per $2,000 of income above $86,410 single / $110,780 joint. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Minnesota
Varies
Individuals / Personal Taxes
Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.
Business justification
Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion. Government pensions: For 2026, a public pension subtraction of up to $13,850 single / $27,690 joint applies only to listed public plans not covered by Social Security. It phases out 10% per $2,000 of income above $86,410 single / $110,780 joint. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions