Minnesota

Social Security benefits are taxable in Minnesota. But there is also good news, as starting with 2021, a married couple that files for a joint return can deduct up to $5,290 of their federally taxable Social Security benefits from their state income.

The 2021 tax break will be as much as $4,130 for single and head-of-household filers and up to $2,645 for married people that file separate returns. The deduction is phased out for married seniors with more than $80,270 of provisional income, and it’s reduced to zero for those couples that have more than $106,720 of provisional income. Also, the median property tax rate is $1,082 per $100,000 of assessed home value.