Does Minnesota tax Social Security? Not up to $86,410 of AGI ($110,780 joint) in 2026
Not up to $86,410 of federal AGI (single or head of household) or $110,780 (joint) for 2026. Above that, Minnesota's subtraction shrinks by 10% for each $4,000 of AGI, or part of it, and is gone about $40,000 higher. A second formula, the “alternative method”, is used when it gives a bigger subtraction, which can matter just above the limit.
The rule, in Minnesota's words
The Department of Revenue: “If you included Social Security or Railroad Retirement benefits in your federal adjusted gross income and meet certain income limitations, you may qualify for a Social Security Benefit Subtraction.” and “The subtraction is phased out by 10% for each $4,000 of AGI in excess of the income levels mentioned.” The 2025 worksheet rounds each $4,000 step up: “Divide step 3 by $4,000 ($2,000 if married and filing a separate return). Round up to nearest whole number.” The 2026 limits of $86,410 and $110,780 are from the Department's 2026 inflation-adjusted amounts (2025: $84,490 and $108,320).
What Social Security adds to your Minnesota tax in 2026
Each row compares Minnesota's 2026 income tax with your Social Security and without it, for the same IRA or 401(k) withdrawals. The difference is what your benefits cost you in Minnesota tax, through every rule at once. For the single example, the extra tax starts once IRA withdrawals pass about $66,500, where AGI crosses the limit; for the couple, about $77,000.
| IRA or 401(k) withdrawals | Federal AGI | Minnesota tax, 2026 | Same, without Social Security | Extra because of Social Security |
|---|---|---|---|---|
| $0 | $0 | $0 | $0 | $0 |
| $10,000 | $10,000 | $0 | $0 | $0 |
| $20,000 | $23,500 | $144 | $144 | $0 |
| $30,000 | $41,300 | $679 | $679 | $0 |
| $40,000 | $59,800 | $1,214 | $1,214 | $0 |
| $50,000 | $70,400 | $1,749 | $1,749 | $0 |
| $60,000 | $80,400 | $2,421 | $2,421 | $0 |
| $80,000 | $100,400 | $4,335 | $3,781 | $555 |
| $100,000 | $120,400 | $6,389 | $5,141 | $1,248 |
| $125,000 | $145,400 | $8,424 | $6,841 | $1,583 |
| $150,000 | $170,400 | $10,386 | $8,785 | $1,601 |
| IRA or 401(k) withdrawals | Federal AGI | Minnesota tax, 2026 | Same, without Social Security | Extra because of Social Security |
|---|---|---|---|---|
| $0 | $0 | $0 | $0 | $0 |
| $10,000 | $10,000 | $0 | $0 | $0 |
| $20,000 | $24,000 | $0 | $0 | $0 |
| $30,000 | $41,100 | $0 | $0 | $0 |
| $40,000 | $59,600 | $332 | $332 | $0 |
| $50,000 | $78,100 | $867 | $867 | $0 |
| $60,000 | $94,000 | $1,402 | $1,402 | $0 |
| $80,000 | $114,000 | $2,667 | $2,472 | $195 |
| $100,000 | $134,000 | $5,183 | $3,795 | $1,387 |
| $125,000 | $159,000 | $7,807 | $5,495 | $2,312 |
| $150,000 | $184,000 | $9,507 | $7,195 | $2,312 |
Computed with the same engine and figures as our eight-state tool: federal taxable Social Security from IRS Publication 915, the 2026 federal standard deduction including the extra amount at 65 and the senior deduction, and Minnesota's rules above. No other income, itemized deductions or credits.
Your numbers
Social Security disability benefits
The subtraction covers Social Security included in federal AGI, which includes disability benefits: “Social security benefits include monthly retirement, survivor, and disability benefits.” Minnesota also has a separate subtraction for people 65 or older or permanently and totally disabled (Schedule M1R), with its own income limits, which this page does not cover.
Pensions and IRA withdrawals
Minnesota taxes pension and IRA income, with a separate subtraction for some public pensions. Its 2026 rates run from 5.35% to 9.85%.
2027
The limits are indexed for inflation each year; the 2027 amounts are usually published in December.
The other states that tax Social Security
Colorado, Connecticut, Montana, New Mexico, Rhode Island, Utah, Vermont. All eight side by side are in the eight-state tool, and every state with its own instructions in the all-states tool. How much of your Social Security the federal return taxes is in our taxable Social Security calculator.
Rechecks and changes
- . First published.
Sources
- Minnesota Department of Revenue, Social Security Benefit Subtraction
- Minnesota Department of Revenue, Tax Year 2026 Inflation-Adjusted Amounts
- Minnesota Department of Revenue, 2025 Schedule M1M and instructions (line 12)
- IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Dollars Ahead, Retirement Tax by State (the eight-state tool and its test cases)
This page shows what published tax rules do to the example incomes. It is not tax, legal or financial advice. For a decision that matters, take your numbers to a professional licensed to advise you.