Senator Osmek Keeps Promise To Deliver Permanent Tax Relief To Every Minnesotan

With inflation at 40-year highs and working Minnesotans being squeezed more every day by soaring prices for gas, groceries, and energy, Minnesota Senate Republicans today made good on an early session promise to give back Minnesota’s historic $9 billion budget surplus with the largest permanent tax cut in state history.

The Minnesota Senate passed a landmark tax bill that reduces the first-tier tax rate for all filers from 5.35% to 2.80% and includes a provision to eliminate the state income tax on all Social Security benefits. The bill provides taxpayers with a much-needed $8.43 billion in relief over the next three years.

“Minnesota has long ranked as one of the least tax-friendly environments in the nation,” Senator David Osmek (R-Mound) said. “People flee the state, looking for friendlier places to live. We need to address that, and we need to do it now. We can’t just settle for one-time checks that won’t move the needle. With a record surplus created by our taxpayers, Minnesota has a real opportunity to provide permanent relief. We need to take advantage of this opportunity and should do everything in our power to help Minnesotans out and allow folks to keep more of their hard-earned dollars.”

  • Reducing the first-tier tax rate: Minnesota’s lowest tax bracket is higher than the highest tax bracket in 24 other states. Over 2.4 million filers would benefit from the historic Republican tax rate cut, with an average annual savings of $759. A typical family making $100,000 would see a savings of $1,064 every year.
  • Full elimination of the tax on Social Security income: Minnesota is one of just 13 states that tax Social Security benefits. Impacting taxpayers starting at $25,000 in income, the Social Security Income tax hits more than 407,000 Minnesota filers. None of the states that border us — Iowa, Wisconsin, Michigan, and South Dakota — tax Social Security income. Eliminating the Social Security tax would put $1.6 billion back into the hands of beneficiaries, with an average benefit of $1,254 every year.

In the last five years, Republicans passed billions in tax cuts, stopped Gov. Walz’s massive tax increases, and passed the first income rate tax cuts in 20 years. Senate Republicans will continue the fight for meaningful and permanent tax relief.