ST. PAUL, MN – Senator Julia Coleman, vice chair of the Senate Committee on Taxes, co-authored a recently introduced bill to fully repeal Minnesota’s tax on Social Security income. 

This bill would allow Minnesota’s retirees to deduct all Social Security income on their state income taxes and take effect next year. 

Eliminating this tax would help prevent retirees from leaving Minnesota for states that do not tax Social Security benefits. Currently, Minnesota is one of only 12 states that still tax social security benefits.

“It is unacceptable for our seniors to be taxed twice on their Social Security income,” Coleman said. “This is a topic that I regularly hear from my constituents on, and it is long overdue to fully eliminate this tax. The bill I co-authored would fully repeal our tax on Social Security income and put Minnesota in alignment with the majority of states.”

Senate Republicans have been phasing out taxes on Social Security income since 2017.

Facts about Social Security income taxes:

• 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.