Minnesota Senate President Jeremy Miller (R-Winona) recently introduced a new bill that would allow Minnesota’s retirees to fully and completely deduct all Social Security income on their state income taxes beginning next year.
“One of the tax-related issues I hear about most from constituents is Social Security taxes,” said Senator Miller. “I get asked about it at the grocery store, events around the district, and I get phone calls and emails about it on a regular basis. And with good reason: Minnesota is one of the last remaining states to levying a tax on Social Security income. It’s time to catch up to the rest of the country and give our senior citizens this well-earned relief. We have made good progress since 2017, but I would like to see Social Security income fully exempt from state income taxes here in Minnesota.”
In 2017, Senate Republicans began the process of phasing out taxes on Social Security income, which is taxed twice under current law – once when it is taken out of your paycheck, and again when you receive your benefit after retirement.
Facts about Social Security income taxes:
- Minnesota is one of thirteen states that taxes Social Security benefits.
- Minnesota ranked fifth on Kiplinger’s list of the “Least Tax-Friendly States for Retirees,” according to their 2019 report. https://www.kiplinger.com/slideshow/retirement/T037-S001-10-least-tax-friendly-states-for-retirees-2019/index.html