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HF 153

All individual income tax rates reduced by one percentage point.

2025-2026 Regular Session Introduced by Scott Van Binsbergen and 6 co-sponsors

Minnesota would cut all personal income tax rates by 1 percentage point, lowering taxes for all filers across every bracket.

Introduction and first reading, referred to Taxes
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WeVote Research Nonpartisan
Bill Summary · HF 153

Summary of HF 153 (2025-2026) – Minnesota

Purpose and Intent

HF 153 proposes to reduce all individual income tax rates by one percentage point. The bill aims to lower the overall tax burden on individual earners across the income spectrum, simplifying the tax structure and potentially affecting behavioral and revenue dynamics for the state.

Key Provisions and Changes

  • Tax Rate Reduction:

    • All individual (personal) income tax rates would be reduced by 1 percentage point.
    • The reduction applies to the entire current set of Minnesota individual income tax brackets, effectively lowering marginal tax rates for all taxpayers.

  • Scope of Taxpayers Affected:

    • Applies to individuals filing personal income tax returns in Minnesota.
    • Includes residents with various income levels who currently fall within Minnesota’s current individual tax brackets.

  • Effective Date:

    • The bill as introduced does not specify an exact effective date within the summary. If enacted, the bill would establish when the 1-point reduction takes effect (e.g., for tax year 20XX or a specific calendar year), which would determine the immediate impact on withholding, estimated payments, and filings.

  • Revenue and Fiscal Impact (implicit):

    • By reducing tax rates uniformly, state revenue from individual income tax would be expected to decline relative to current law, with the magnitude depending on the distribution of income among filers and the timing of implementation.
    • The bill does not include financing or offset provisions within the summary provided; detailed fiscal estimates would typically be developed by fiscal analysts and presented in committee testimony or fiscal notes.

Who Would Be Affected

  • Taxpayers: Minnesota residents who pay state personal income tax. The benefit increases with income level, as all brackets are reduced by 1 percentage point; higher-income earners currently paying at higher brackets would see larger nominal savings per dollar of taxable income relative to those in lower brackets, though the precise dollar impact depends on each taxpayer’s bracket and income composition.

  • Withholding and Estimated Tax:

    • Employers and payroll processors would adjust withholding tables to reflect the lower rates (once enacted and effective date is established).
    • Individual estimated tax payments would be recalculated accordingly for affected taxpayers.

Procedural and Timeline Aspects

  • Current Status: Introduction and first reading on February 10, 2025, with referral to the Taxes committee.
  • Next Steps (typical legislative process):
    • Committee hearings and possible amendments in the Taxes committee.
    • Floor debates and votes in the Minnesota House of Representatives.
    • If passed by the House, the bill would move to the Senate for consideration, potentially followed by a conference committee if there are differences between House and Senate versions.
    • Final passage and enactment would require approval by both chambers and the governor, followed by the effective date as specified in the bill.

Additional Considerations (Not Specified in Summary)

  • Economic and Distributional Effects: Analysts would assess the impact on state revenue stability, budgeting, and potential effects on economic activity and taxpayer behavior.
  • Compatibility with Other Revenue Measures: If enacted, the legislature might consider companion measures (e.g., adjustments to credits, deductions, or other taxes) to offset revenue changes or to preserve fiscal targets.

This summary captures the core purpose, provisions, affected groups, and procedural steps for HF 153 as introduced. For a complete understanding, consult the bill text, fiscal notes, and committee materials as they become available.

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

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