WeVote
Log In

Bill

Bill

SF 235

Unlimited Social Security subtraction permission

2025-2026 Regular Session Introduced by Jeremy Miller

Bill removes state income tax cap on Social Security benefits, allowing unlimited deductions but reducing state revenue and favoring higher-income retirees.

Referred to Taxes
#seniorcitizens #taxation #taxation-income
0
WeVote Research Nonpartisan
Bill Summary · SF 235

Legislative bill overview

SF 235 would allow Minnesota residents to subtract unlimited amounts of Social Security income from their state taxable income. Currently, Minnesota permits a subtraction only up to a specified limit. This bill would remove that cap entirely, making all Social Security benefits tax-exempt at the state level.

Why is this important

Social Security is a primary income source for many retirees, and state income tax on these benefits can significantly impact seniors' financial security. Removing the subtraction limit would provide tax relief to all Social Security recipients in Minnesota, potentially benefiting hundreds of thousands of retirees, though higher-income beneficiaries would see greater absolute dollar benefits.

Potential points of contention

  • Revenue impact: Removing the cap would reduce state tax revenue, requiring either budget cuts elsewhere, tax increases on other groups, or deficit spending
  • Equity concerns: Higher-income retirees with substantial Social Security benefits would receive disproportionately larger tax breaks than lower-income seniors
  • Fiscal sustainability: The long-term cost of unlimited deductions may strain state finances, particularly as Minnesota's aging population grows

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

Sign in to ask a question.