WeVote
Log In

Bill

Bill

SF 22

Unlimited Social Security subtraction permission

2025-2026 Regular Session Introduced by Glenn Gruenhagen

Bill would allow Minnesota taxpayers to exclude unlimited Social Security income from state taxation, reducing tax liability for retirees but decreasing state revenue.

Referred to Taxes
#seniorcitizens #taxation #taxation-income
0
WeVote Research Nonpartisan
Bill Summary · SF 22

Legislative bill overview

SF 22 would allow Minnesota taxpayers to subtract unlimited amounts of Social Security benefits from their state taxable income. Currently, Minnesota has limits on how much Social Security income can be excluded from state taxation. This bill would effectively exempt all Social Security income from Minnesota state income tax.

Why is this important

Social Security is a major income source for retirees, and state income tax on these benefits significantly affects seniors' disposable income. Minnesota currently taxes Social Security more broadly than many neighboring states, making this a competitive issue for retiree relocation. This change would particularly benefit higher-income retirees who receive substantial Social Security payments.

Potential points of contention

  • Revenue impact: Unlimited Social Security subtraction would reduce state tax revenue, requiring either spending cuts or tax increases elsewhere to maintain balanced budgets
  • Equity concerns: This primarily benefits retirees with substantial Social Security income; the tax burden would shift to working-age taxpayers and those without significant retirement income
  • Fiscal sustainability: Combined with other tax exemptions, this could strain state finances and affect funding for education, healthcare, and infrastructure

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

Sign in to ask a question.