MINNEAPOLIS (WCCO) — A recent listing has ranked Minnesota as the least tax-friendly state in the United States.

On Thursday, finance website Kiplinger released its rankings of the best and worst states for taxes.

According to its 2018 Kiplinger Tax Map, the most tax-friendly states, from No. 1 to No. 10, include Alaska, Wyoming, South Dakota, Florida, Nevada, North Dakota, Delaware, Arizona, Mississippi and Louisiana.

As for the 10 least tax-friendly states, Minnesota tops the list. Following Minnesota is Maryland, New York, Illinois, Maine, Vermont, Hawaii, California, New Jersey and Connecticut.

As for Minnesota, Kiplinger says the state hits hard with its income tax.

“It added a new top income tax rate of 9.85% in 2013. But what makes Minnesota really stand out is that its lowest income tax rate is 5.35%,” the finance website said.

Kiplinger says the federal tax overhaul could make things worse in Minnesota, too.

“Minnesota uses federal taxable income as the starting point for calculating state taxes. An estimated 300,000 Minnesotans will pay higher state taxes due to the loss of personal and dependent exemptions on their federal tax returns,” Kiplinger said.

For more on the list, click here.

“It’s important that Americans don’t overlook the impact of state and local taxes on their bottom line. Kiplinger.com’s Tax Map shows that tax rates literally are all over the map—and the difference between living in a high-tax or a low-tax state can be thousands of dollars each year,” said Robert Long, general manager of Kiplinger.com. “And the tax burden in many states will be even greater this year as lawmakers wrestle with how to adjust their tax codes to reflect the federal tax overhaul.”

Comments (11)
  1. Sandra Johnson Aultman says:

    Being in the military I was paying state taxes as if I was still living in the state – although I wasn’t getting any of the benefits – so I chose to change my home of residence to Texas when I re-enlisted. Although I love Minnesota and enjoy visiting – I’ll live elsewhere where I can decide how my taxes are spent better.

  2. Curt McAloney says:

    The wording is wrong. Based on the headline I would think that MN doesn’t like taxes as we’re the least friendly towards them. At any rate, here in MN the taxes are high, but unlike some of the other states mentioned, you get what you pay for. Excellent education, social services, etc.

    1. Nothing, absolutely nothing is done by Democrats if does not benefit them to buy votes with your taxes.
      We have horrible education, the money all goes to keep the democrat voting block of Public Government teachers Unions happy. The social services is just another voting block sceam by the Democratic party. Every single tax spending item in Minnesota is a “POLITICAL THING” for Democrats.

  3. Jeff Falk says:

    MN is a laugh compared to many other U.S. states as there’s no reason for the high progressive income taxes except the DFL is obsessed with perpetual social welfare programs instead of individual accountability. You do not “get what you pay for” when the state government is managing the out of control spending of those funds. Such inefficient, wealth redistribution policies are flawed on many fronts as they’re based on the secular humanist reasoning of the Democratic party.

  4. Debbie Daniels says:

    MN is taxed so badly their is a tax windfall, of a billion +. We allow millions and millions of our hard earned money to be stolen by people whom have not even put a dent into contributing to the tax bills. Leaving no accountability or liablility for the accused. We provide great benefits for the poor of which indiana, illionois wisconsin iowa, daktotas are all aware of and make up the majority of new residents, creating laws of years of residency would make a big plus in curbing the elements of residents we are receiving into our public service systems, Special treatment for certain groups of residens should not be inclusive and should not be funded by taxpayers but by other means. The lottery funds should be used for what they were originally set up to do and all monies that have been borrowed or “moved” should be accountably replaced… NO MORE TAXES….

  5. Funny that Minnesota usually makes the best places to live