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Bill

HF 301

All income tax rates reduced by 3.25 percentage points.

2025-2026 Regular Session

Minnesota bill reduces all income tax rates by 3.25 percentage points, cutting state revenues while potentially benefiting higher earners more substantially.

Introduction and first reading, referred to Taxes
#taxation-income
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WeVote Research Nonpartisan
Bill Summary · HF 301

Legislative bill overview

HF 301 proposes a across-the-board reduction of 3.25 percentage points to Minnesota's income tax rates. This would apply to all tax brackets and would represent a significant cut to state income tax liability for individual filers. The bill is currently in the House Taxes committee following its introduction.

Why is this important

Income tax reductions directly affect state revenue and taxpayer finances. Minnesota relies substantially on income tax for funding education, healthcare, infrastructure, and other services. This proposal would meaningfully shift the balance between tax revenue and public spending, with cascading effects on the state budget.

Potential points of contention

  • Revenue impact and budget implications: A 3.25 percentage point cut would significantly reduce state revenues; policymakers must determine how to address resulting budget shortfalls or spending cuts
  • Distributional effects: Tax cuts benefit higher earners proportionally more in dollar terms, raising equity concerns about who benefits most from the reduction
  • Funding for public services: Schools, healthcare programs, and infrastructure funding depend on tax revenue; stakeholders may debate whether the state can maintain current service levels with reduced income tax collections

Compiled from official sources — confirm details with the bill’s official record.

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