Cost Of New Minn. Top Income Tax Tate? It Depends

ST. PAUL, Minn. (AP) — A narrow band of Minnesotans will pay a higher income tax under the new state budget. How much more? That depends.

Officials say the average cost of the new tax for 54,400 filers is just shy of $7,200. But that figure can be misleading because the super-rich will pay dramatically more than those barely touched by the new rate.

The median tab for those affected is $1,904, according to a Minnesota Department of Revenue analysis. That means half of the people will pay more than that and half will pay less.

The 9.85 percent rate applies to taxable income above $250,000 for married filers and $150,000 for singles. It takes effect for this tax year.

The new top tax rate will put Minnesota’s upper bracket in the nation’s top five.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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