Tax Rates: Minnesota VS Utah

Minnesota Income Tax:

Minnesota collects a state income tax at a maximum marginal tax rate of 7.85%, spread across three tax brackets. Like the Federal Income Tax, Minnesota’s income tax allows couples filing jointly to pay a lower overall rate on their combined income with wider tax brackets for joint filers. Minnesota’s maximum marginal income tax rate is the 9th highest in the United States.

2012 Minnesota Tax Rates and Brackets:

Rate Married Joint Single Head of Household
5.35% $0 to 34,590 $0 to 23,670 $0 to 29,130
7.05% 34,591 to 137,430 23,671 to 77,730 29,131 to 117,060
7.85% Over 137,430 Over 77,730 Over 117,060

Note: Head of household filers are single filers with dependents. Income brackets for each rate are adjusted annually for inflation.

Nonrefundable credits are available for:

  • Marriage credit
  • Long-term care credit

Refundable credits are available for:

  • Dependent care expenses:
    • up to $720 per dependent for up to two dependents available for filers with income up to $37,030
  • Working family credit:
    • equals a percentage of earned income
    • maximum credit of $1,788
  • K-12 education credit
  • Military service credit (combat zone)

Online Tax Resources:

Utah Income Tax:

Utah overhauled its tax system, effective since the 2008 tax year. Rather than applying multiple tax rates on income, Utah now collects a single rate income tax of 5 percent.

Online Resources:


Utah’s flat tax of 5% would result in someone making at least $100,000 almost certainly paying a lower effective tax rate than they would pay in Minnesota (highest marginal rate is 7.85%).

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