MINNESOTA CAPITAL GAINS TAX · TAX YEAR 2026
Minnesota capital gains tax calculator
Minnesota taxes capital gains as ordinary income at rates from 5.35% to 9.85%, and adds 1% on net investment income over $1,000,000. On a $50,000 long-term gain with $75,000 of wages, a single filer owes $3,403 of Minnesota tax and $7,500 of federal income tax, $10,903 in all, and keeps $39,097.
Tax on your gain
- Total tax on the gain
- $10,902.83
- Federal income tax
- $7,500.00
- Net investment income tax
- $0.00
- Minnesota tax
- $3,402.83
- After-tax gain
- $39,097.17
- Effective rate
- 21.81%
Minnesota tax by size of gain
What a single filer with $75,000 of wages owes on a long-term gain. Federal tax includes the net investment income tax.
| Gain | Federal tax | State tax |
|---|---|---|
| $10,000 | $1,500 | $680 |
| $50,000 | $7,500 | $3,403 |
| $100,000 | $15,000 | $7,328 |
| $250,000 | $42,250 | $21,472 |
| $1,000,000 | $208,920 | $96,314 |
Minnesota capital gains tax questions
Does Minnesota tax capital gains?
Yes. Minnesota taxes capital gains as ordinary income at rates from 5.35% to 9.85%, and adds 1% on net investment income over $1,000,000.
How much Minnesota tax is due on a capital gain?
A single filer with $75,000 of wages owes $3,403 of Minnesota tax on a $50,000 long-term gain, 6.81% of the gain, and $21,472, 8.59%, on a $250,000 gain. Federal tax on the same gains is $7,500 and $42,250.
Does Minnesota tax short-term capital gains differently?
No. Minnesota taxes a $50,000 short-term gain the same as a long-term one: $3,403 of Minnesota tax. Federal tax is what changes: $11,064 on the short-term gain against $7,500.
Does Minnesota tax investment income over $1,000,000?
Yes. On top of its income tax, Minnesota charges 1% of net investment income, capital gains included, above $1,000,000. With $75,000 of wages, a $2,000,000 long-term gain owes $10,000 of it.
What the calculator leaves out
Federal tax stacks the gain on wages after the 2026 standard deduction, taxes a long-term gain at the long-term capital gains rates and a short-term gain at the ordinary brackets, and adds the net investment income tax. The gain is the only investment income. Capital losses and carryovers, qualified dividends, the collectibles and section 1250 rates, the alternative minimum tax and credits are left out; enter a home sale's gain after any federal exclusion.