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HF 828

Unlimited Social Security individual income tax subtraction provided.

2025-2026 Regular Session Introduced by Jeff Dotseth

Minnesota bill would eliminate all state income tax on Social Security benefits, reducing senior tax burden but potentially decreasing state revenue.

Introduction and first reading, referred to Taxes
#taxation-income
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WeVote Research Nonpartisan
Bill Summary · HF 828

Legislative bill overview

HF 828 would allow Minnesota residents to subtract unlimited amounts of Social Security income from their state taxable income. Currently, Minnesota has limitations on how much Social Security income can be excluded from state income tax calculations. This bill would remove those caps entirely.

Why is this important

Social Security is a primary income source for many retirees, and state income taxes on these benefits effectively reduce retirement security. This change would particularly benefit seniors on fixed incomes by increasing their take-home pay, though it would reduce state tax revenue that funds education, infrastructure, and other services.

Potential points of contention

  • Revenue impact: Removing this tax on Social Security could significantly reduce state income, requiring either spending cuts or tax increases elsewhere
  • Distributional fairness: The benefit flows primarily to retirees; debate exists over whether this is the best use of tax policy versus helping working-age residents or investing in services
  • Existing exemptions: Minnesota already provides some Social Security tax relief; questions arise about whether unlimited deductions are necessary or if current provisions are sufficient

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

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