Minnesota tax deductions and write-offs (2026)

No. Minnesota fully exempts military retired pay from state income tax (full subtraction since tax year 2023). Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.

Yes. Private pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.

Partly. For 2026, all federally taxable Social Security is subtracted if AGI is at or below $86,410 (single/head of household), $110,780 (married filing jointly) or $55,390 (married filing separately). Above those levels, the subtraction shrinks by 10% for each $4,000 of extra AGI ($2,000 if married filing separately). The subtraction is gone at about $126,410 single / $150,780 joint. An alternative method based on provisional income (maximum $5,840 joint / $4,560 single, not indexed) can be used instead if it gives a larger subtraction.

Yes: Minnesota offers the Minnesota Working Family Credit, Own formula for 2026: 4% of the first $9,690 of earned income (max $388), up to $1,408 / $2,718 / $3,158 with 1 / 2 / 3+ qualifying older children (refundable). 'Qualifying older children' are dependents aged 18+; children under 18 count toward the separate $1,800-per-child Child Tax Credit instead. Both credits shrink by 12% of income above $32,680 ($38,770 married filing jointly). ITIN filers eligible.

Only instead of income tax: itemizers in Minnesota pick sales tax (6.875% state rate, about 8.14% with local taxes) or state income tax, whichever is bigger. Instead of general sales tax, vehicles pay a 6.875% motor vehicle sales tax (raised from 6.5% on July 1, 2023) at title transfer.

Yes: Minnesota offers the Renter's Credit. Refundable credit for renters based on household income and rent paid, up to $2,720, claimed on Schedule M1RENT with Form M1. Household income below $79,330 for 2026; full- or part-year Minnesota resident; cannot be claimed as a dependent; building must pay property tax or payments in lieu of property tax; landlord-issued Certificate of Rent Paid (CRP) required.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Minnesota adds its own break: Refundable Renter's Credit up to $2,720 on Form M1 for household income under $77,570.

Partly: Minnesota's registration tax is based on your vehicle's value, so it's deductible as personal property tax if you itemize. Tax is $10 plus 1.575% of depreciated MSRP (1.54% if first registered before 11/16/2020); plate and filing fees don't count.

Minnesota taxes income up to 9.85%, taxes Social Security above certain incomes, and offers a refundable child tax credit.

Yes on your Minnesota return: Subtraction $1,500 single / $3,000 joint, or 50% credit up to $500 (phases out above $98,410 AGI). Contributions to any state's 529 plan count. Tax parity; choose credit or subtraction, not both. MN treats K-12 tuition withdrawals as nonqualified, triggering recapture.

Yes: $1,800 per qualifying child under 18 for 2026, with no limit on the number of children. Refundable, and no earned income is required. Combined with the Working Family Credit, it's reduced by 12% of AGI above $32,680 ($38,770 joint) for 2026. ITIN filers are eligible, and advance payments are available.

Yes, as a business expense: Minnesota charges $155 online/in person; $135 by mail to form an LLC; ongoing: $0 annual renewal. Annual renewal due Dec 31; failure to file leads to administrative termination.