Abolish Minnesota’s estate tax
Today we launch the third of our new Policy Briefings: ‘Abolish Minnesota’s estate tax‘. Minnesota imposes heavy estate taxes. We are one of 12 states and the District of Columbia…
After the individual income tax and sales tax revenues, residential property tax revenues make up the third-highest proportion of Minnesota’s total state and local tax revenues. According to the Tax Incidence Study published by the Minnesota Department of Revenue, in 2018, Residential property tax revenues made up 17 percent of the total tax burden Minnesota taxpayers faced, making them an important point of focus.
How does Minnesota do on property taxes?
Minnesota’s property tax rates rank slightly better than income tax rates but are still well above average. According to the Tax Foundation, Minnesota’s property tax rate ranked 19th among the states and the District of Columbia. Among its neighbors, Minnesota ranks better than Wisconsin, Iowa and South Dakota, only outdone by North Dakota.
So while not among the top, Minnesota still ranks highly on property taxes. And especially considering that Minnesotans also pay some of the country’s highest income tax rates, taxpayers could use some reform.