Income tax rates and brackets modified.

2025-2026 Regular Session Introduced by Nathan Coulter and 18 co-sponsors

HF 1958 would modify Minnesota's income tax rates and brackets, potentially changing tax bills for filers and altering state withholding and revenue.

Author added Johnson, P.

#taxation-income

HF 1958 — Income tax rates and brackets modified

Overview

HF 1958 proposes changes to Minnesota’s individual income tax by modifying the state's tax rates and brackets. The bill’s title indicates a reform of how income tax is calculated for taxpayers in Minnesota. The specific rate changes, bracket thresholds, or related adjustments are not provided in the available summary.

What the bill would do (high level)

Modify Minnesota’s individual income tax rates and bracket structure.

The exact nature of the modifications (e.g., rate levels, bracket boundaries, deductions, credits) is not detailed in the provided information.

Provisions and changes (current level of detail)

The provided materials do not list the precise provisions or numerical changes. If enacted, the bill could alter:

Marginal tax rates and the corresponding income brackets
Thresholds at which higher rates apply
Potential ancillary changes (e.g., standard deduction, personal exemptions, credits) if tied to bracket reforms

No explicit effective date or year for any changes is included in the summary.

Who is affected

Minnesota individual income taxpayers who file under the state income tax system.

Potential indirect effects on employers via changes to withholding calculations, depending on any enacted changes to withholding tables.

Procedural status and timeline

Introduced: March 6, 2025

First reading: March 6, 2025; referred to Taxes

Legislative actions:

March 10, 2025: Author added Kotyza-Witthuhn
March 20, 2025: Author added Johnson, P.

Related bill: SF 2290 (companion bill in the Senate)

Related legislation

SF 2290 is identified as the companion bill to HF 1958, indicating parallel or mirrored provisions in the Senate.

Potential impact and considerations

Revenue Impact: Changes to rates and brackets would affect state revenue either positively or negatively depending on the direction and magnitude of the modifications.

Tax Filers: Depending on changes, some filers could see tax savings or increases; withholding adjustments may be necessary for the 2025 tax year and beyond if enacted.

Fiscal notes and analysis: A detailed fiscal impact statement would clarify expected revenue effects and distributional impacts across income groups once provisions are specified.

Next steps

Monitor the Taxes committee proceedings for HF 1958 to see the exact text, proposed rate/bracket changes, and any accompanying provisions.

Review any fiscal analyses or hearings to understand revenue implications and stakeholder impacts.

Compare with SF 2290 for a Senate counterpart and potential conference committee considerations if both chambers advance.