US Tax Tools

Minnesota Retirement Income Tax 2025

See how Minnesota treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.

Social Security

A 2025 subtraction applies to federally taxable Social Security and phases out by AGI.

Pension and IRA income

Private pension and IRA income is generally taxable.

012025 STATE RETURN INPUTS
Retirement income by state
For Minnesota, the model subtracts $15,000 of retirement income and estimates $3,984 of 2025 state income tax.

Estimated 2025 state tax

$3,984

Resident return; local taxes and unmodeled credits excluded.

Modeled state taxable income

$65,000

Retirement-income subtraction

$15,000

A 2025 subtraction applies to federally taxable Social Security and phases out by AGI.

Private pension and IRA income is generally taxable.

Scope: The calculator applies the official simplified method; uncommon alternative-method adjustments require Schedule M1M.

Share

Minnesota worked example

For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:

Retirement subtraction

$15,000

Modeled state taxable income

$65,000

Estimated 2025 state tax

$3,984

This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.

What this model does not include

The calculator applies the official simplified method; uncommon alternative-method adjustments require Schedule M1M. Review the official instructions before filing.

Review the full Minnesota income tax guide →

Minnesota retirement income tax FAQs

Does Minnesota tax Social Security benefits in 2025?

A 2025 subtraction applies to federally taxable Social Security and phases out by AGI.

Does Minnesota tax pensions and IRA withdrawals?

Private pension and IRA income is generally taxable.

What does the Minnesota retirement tax example include?

The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.

Is this a complete Minnesota resident return?

No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. The calculator applies the official simplified method; uncommon alternative-method adjustments require Schedule M1M.

Sources

Related Calculators

Last updated July 27, 2026 Tax year 2025

Data sources: Minnesota Revenue — 2025 Schedule M1M and Instructions

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

Read our methodology →