MINNESOTA RETIREMENT INCOME TAX · TAX YEAR 2026
Does Minnesota tax Social Security and retirement income?
Minnesota subtracts all taxable benefits when federal AGI is $86,410 or less ($110,780 joint), and 10% less for each $4,000 of AGI above that. Minnesota taxes private pensions and 401(k) and IRA withdrawals at its regular rates, and subtracts military retirement pay. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $679 in Minnesota income tax for 2026.
Your estimate
- Minnesota income tax
- $679.45
- Federal income tax
- $1,810.00
- Total income tax
- $2,489.45
Subtracted from Minnesota income
- Social Security
- $11,300.00
- Additional standard deduction (65+)
- $2,000.00
The public pension subtraction (service without Social Security coverage) is not modeled; it depends on service history.
Minnesota tax at different retirement incomes
Minnesota income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $144 | $0 |
| $40,000 | $1,214 | $332 |
| $60,000 | $2,421 | $1,402 |
| $100,000 | $6,389 | $5,183 |
| $150,000 | $10,386 | $9,507 |
Does Minnesota tax Social Security?
Partly. For 2026, Minnesota subtracts all Social Security benefits taxed on the federal return when AGI is $86,410 or less for single filers and heads of household, $110,780 or less for joint filers, or $55,390 or less if married filing separately. Above that, the subtraction shrinks by 10% for each $4,000 of AGI ($2,000 if married filing separately). An alternative method based on provisional income can give a larger subtraction.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Minnesota taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Minnesota taxes none of it.
Does Minnesota tax pensions?
Yes. Private pensions are taxed. Public pensions earned in service not covered by Social Security, such as some Minnesota teacher and PERA pensions, qualify for a separate subtraction that is reduced at higher incomes; the calculator does not model it. Most military retirement pay is subtracted in full.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Minnesota exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $679 |
| Minnesota government | $0 | $679 |
| Federal civil service | $0 | $679 |
| Military | $20,000 | $0 |
Does Minnesota tax IRA and 401(k) withdrawals?
Yes. IRA and 401(k) withdrawals are taxed at the regular rates, with no subtraction. Qualified Roth IRA withdrawals are not taxed.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays $144 in Minnesota income tax for 2026.
At what age do retirement tax breaks start in Minnesota?
At 65. Each person 65 or older adds $2,000 to the standard deduction ($1,600 if married), and lower-income taxpayers 65 or older can subtract up to $9,600 ($12,000 on a joint return when both are 65), less nontaxable Social Security and half of AGI above $14,500 ($18,000 for both). The Social Security subtraction has no age requirement.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $786 | $1,038 |
| 65Additional standard deduction (65+) | $679 | $867 |
What the calculator leaves out
The public pension subtraction (service without Social Security coverage) is not modeled; it depends on service history.
- The alternative Social Security method uses federal provisional income (half of benefits received).
- The standard deduction limitation inside the Minnesota formula is measured on income after the subtractions.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.