Retiring in Minnesota

Every figure below is sourced to Minnesota’s own publications and dated. Estimates only, and not tax advice.

Retirement tax by state

What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.

Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.

Decided on the two rates that actually govern it — yours now, and yours at withdrawal, in the state you'll retire in rather than the one you're in.

2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.

When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.

What a backdoor Roth conversion would actually cost you in tax — the pro-rata rule most calculators only describe.

The tax a leveraged rental owes inside a self-directed IRA — computed at trust rates, not the rate you'd assume.

401(k) and IRA withdrawals: Taxed
Social Security: Taxed above an income threshold; Below the threshold it is exempt, which is why a yes-or-no answer is usually wrong here.
Top marginal rate: 9.85%; The top of 4 graduated brackets.
Tax year: 2026; Brackets are legislated and change on a fixed calendar, so the year matters.

Minnesota starts from FEDERAL AGI, not federal taxable income, and subtracts the dependent exemption and the standard or itemized deduction from there.
Not modelled: a high-income phase-down of the standard deduction under Minn. Stat. 290.0123 subd. 5, which reduces it by 3% of AGI above $244,400 plus 10% above $337,800, capped at 80% of the deduction, with the 80% cap binding outright above $1,107,750. A high-income Minnesota result here will overstate the deduction.
Minnesota has NO personal exemption for the taxpayer or spouse — only a dependent exemption of $5,300 each for 2026, itself phased out above $244,500 single, $305,600 head-of-household, $366,700 married-joint and $183,350 married-separate.
Not modelled: Minnesota's own 1% net investment income tax under Minn. Stat. 290.033 on net investment income above $1,000,000. The threshold does not vary by filing status and is not indexed.