On the first day of the 2022 legislative session, Senator Paul Gazelka (R-East Gull Lake) introduced a bill to fully and immediately repeal the state’s outdated tax on Social Security income, allowing Minnesota’s retirees to deduct all Social Security income on their state income taxes beginning next year.

“Cost of living keeps going up, and as one of the last states to tax Social Security income, we’re making life difficult for our seniors who have paid enough in taxes throughout their life,” Senator Gazelka said. “When seniors look at their finances and meeting their goals for retirement, they look at this tax, and it’s causing more and more seniors to leave our state. This is bad for Minnesota, it is bad for economic activity,  and it’s time that we once and for all agree to fully phase out the Social Security income tax.”

By taxing Social Security income, the state is taxing benefits that retirees already paid for during a lifetime of hard work. Eliminating this tax will deter the flight of retired Minnesotans to friendlier states who do not tax Social Security benefits. This is one of the most popular and frequent requests constituents make at town halls, via social media, and through emails and phone calls.

Facts about Social Security income taxes:

• Minnesota is one of only 12 states that still tax social security benefits.
• Kiplinger Magazine ranks Minnesota as “not tax-friendly” for retirees.
• Social Security is double taxed – once when it’s taken out of your paycheck, and then again when you receive your benefit later in life.
• 352,000 Minnesota seniors would benefit from the repeal of the Social Security income tax.