WeVote
Log In

Bill

Bill

HF 812

Individual income tax rates modified, and zero bracket provided.

2025-2026 Regular Session Introduced by Elliott Engen and 2 co-sponsors

HF 812 aims to create a zero income tax bracket in Minnesota by defining a threshold under which earnings owe no state tax, alongside restructured tax rates for higher incomes.

Authors added Zeleznikar and Engen
#taxation-income
0
WeVote Research Nonpartisan
Bill Summary · HF 812

Bill Summary — HF 812 (Minnesota, 2025-2026)

Overview

HF 812 proposes modifications to Minnesota's individual income tax rates and introduces a zero bracket. The bill is currently referred to the House Taxes Committee and has three named co-sponsors: Natalie Zeleznikar, Mike Wiener, and Elliott Engen. The introduced version was filed in February 2025, with additional authors added in March 2025.

Purpose and Intent

  • The main goal is to adjust the structure of Minnesota’s individual income tax by modifying existing tax rate brackets and adding a zero tax bracket.
  • A zero bracket would effectively exempt certain levels of income from taxation, reducing the tax burden for lower-income filers and simplifying the tax code at the bottom end of the rate schedule.

Key Provisions and Changes (as described)

  • Income Tax Rate Changes: The bill alters the existing schedule of Minnesota individual income tax rates. While the exact new rate table is not provided in the summary materials, the intent is to modify rates applicable to various income levels.
  • Introduction of a Zero Bracket: A zero bracket would be created, meaning that individuals with income or taxable income up to a specified threshold would owe no state income tax. The threshold (i.e., the income level at which the zero rate applies) would be defined in the bill.
  • Bracket Reconfiguration: In addition to creating a zero bracket, the bill may adjust the widths of other brackets or shift phase-ins/phases-outs to reflect the new structure. The precise brackets and thresholds would be outlined in the bill text.
  • Potential Interaction with Credits/Deductions: While not explicitly stated in the summary, changes to brackets frequently interact with existing personal exemptions, standard/itemized deductions, and credits. The bill may specify how credits or deductions apply under the new rate structure.

Who Would Be Affected

  • Low- and Moderate-Income Filers: The zero bracket targets households and individuals with taxable income at or below the defined threshold, reducing or eliminating their state income tax liability.
  • Higher-Income Filers: Taxpayers with income above the zero-bracket threshold would experience tax under the modified rate schedule. Depending on the final configuration, some brackets could see increases or decreases in marginal rates.
  • Taxpayers with Dependents and Specific Deductions/Credits: If credits or deductions are adjusted in tandem with the new brackets, filers utilizing those provisions could see indirect effects on net tax liability.

Procedural and Timeline Aspects

  • Introduced and Referred: HF 812 was introduced and referred to the House Taxes Committee on February 17, 2025.
  • Author and Co-Sponsors: Primary authorship and co-sponsorship include Zeleznikar, Wiener, and Engen, with Zeleznikar later added as a co-sponsor on March 6, 2025.
  • Next Steps: The bill will advance through committee hearings, potential amendments, and floor votes. If approved by committee, it would move to the full House for consideration and then to the Senate, or be subject to conference committee if the two chambers pass different versions.

Notes and Considerations

  • Specific numeric details (e.g., exact new rate percentages, zero-bracket threshold, and how brackets shift) are not provided in the summary. The bill’s text would include the precise rates and thresholds.
  • As with any tax reform measure, the fiscal impact would depend on the final configuration of rates, thresholds, credits, and deductions, and could affect state revenue and appropriations.

If you’d like, I can incorporate the exact rate schedule and zero-bracket threshold once the bill text is available, and provide a more granular fiscal impact analysis.

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

Sign in to ask a question.