What Minnesota actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, against the state’s own brackets and exclusions rather than a yes-or-no list.
Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
A required minimum distribution is ordinary income, taxed at your top bracket and often pushing you into the next one. Here is the federal tax on RMDs from $20,000 to $75,000 at different income levels, why the default 10% withholding usually leaves a bill, how to avoid an underpayment penalty, and the three side effects that make the real rate higher than the bracket.
The required minimum distribution on every common balance at every age from 73 to 95, worked from the IRS table, plus what happens to the account over twenty years of withdrawals at 0%, 5% and 7% returns. The short version: the share you must take rises every year, and at good returns the dollar amount keeps rising with it.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.
Minnesota guide
On the ordinary retirement profile — $34,000 of Social Security and $61,000 of plan distributions — Minnesota takes $4,937 a year in state income tax.
That is the number people compare, and it is the smallest of three. Property tax adds about $3,750 on the state's $375,000 median home, and insurance another $3,615. The three together come to $12,302, placing Minnesota 49th of 50.
A note before you start. This is general education, not tax advice. Every Minnesota figure comes from this site's own fifty-state income-tax dataset and its retirement tax engine, computed for a single filer aged 70 unless stated otherwise; property tax, median home price and insurance figures come from the site's core state dataset. Rates are for tax year 2026. Property tax is assessed locally in most states, so the effective rate here is a statewide figure rather than your county's.
On Social Security. Minnesota is one of the eight states still taxing Social Security in 2026, but a subtraction under Minn. Stat. 290.0132 subd. 26 removes most or all of it below the thresholds recorded here. The measure is federal AGI — specifically 'adjusted gross income from line 1 of Form M1' — not Minnesota AGI and not provisional income, for the simplified computation these thresholds belong to. The subtraction is reduced by 10% for each $4,000 of AGI above the threshold ($2,000 for married-separate), with the quotient rounded up, so it disappears entirely once AGI exceeds the threshold by more than $36,000 ($18,000 married-separate) — roughly $146,780 married-joint, $122,410 single or head-of-household, $73,390 married-separate.
On 401(k) and IRA distributions. 401(k), 403(b) and traditional IRA distributions are fully taxable as ordinary income. Confirmed by absence from the Schedule M1M subtraction list (lines 12 through 35) and from the enumerated subtractions in Minn. Stat. 290.0132 — there is no general Minnesota retirement-income exclusion and no age-based exclusion.
Read the full Minnesota guide →17 min read · Updated 2026-09-03