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HF 760

Unlimited Social Security subtraction allowed.

2025-2026 Regular Session Introduced by Kristin Robbins

Minnesota bill eliminating caps on Social Security income tax subtractions, reducing state taxes for retirees while reducing state revenue.

Introduction and first reading, referred to Taxes
#taxation-income
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WeVote Research Nonpartisan
Bill Summary · HF 760

Legislative bill overview

HF 760 proposes to allow Minnesota taxpayers an unlimited subtraction from state taxable income for Social Security benefits received. Currently, Minnesota law limits this subtraction, meaning retirees receiving Social Security benefits pay state income tax on a portion of those benefits. This bill would eliminate that limitation entirely.

Why is this important

Social Security taxation at the state level directly affects retirement income for Minnesota seniors. Eliminating the subtraction cap would reduce state tax burden for retirees, potentially improving their financial security in retirement. However, this represents foregone state revenue that would need to be addressed through other means or budget adjustments.

Potential points of contention

  • Revenue impact: Removing the subtraction cap reduces state income tax collections, requiring either spending cuts or alternative revenue sources to maintain state services
  • Equity concerns: Benefits higher-income retirees with larger Social Security benefits more than lower-income retirees, raising questions about progressive taxation
  • State budget pressure: Minnesota faces ongoing budget challenges; this tax reduction could exacerbate deficits unless offset by other measures

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

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