Minnesota Capital Gains Tax Calculator
Minnesota taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Minnesota income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Minnesota state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Minnesota Department of Revenue brackets for tax year 2024, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Minnesota state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Minnesota Department of Revenue so you can confirm any special rule that applies to you.
Minnesota taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $1,360.00 in Minnesota state tax, an effective rate on the gain of 6.80%.
How Minnesota taxes capital gains
Minnesota taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Minnesota bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Minnesota capital gains tax: frequently asked questions
How are capital gains taxed in Minnesota?
Minnesota taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Minnesota income tax brackets published by the Minnesota Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Minnesota Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Minnesota?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $1,360.00 of Minnesota state income tax for a single filer, an effective rate on the gain of 6.80%. Your figure depends on your total income and filing status; enter them above.
Does Minnesota have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Minnesota Department of Revenue; this calculator uses the ordinary income method and links the source.
Does Minnesota adjust its tax brackets for inflation?
Yes. Minnesota adjusts its income tax bracket thresholds each year for inflation under Minnesota Statutes 290.06. The values shown are the 2024 inflation-adjusted brackets. Check the Minnesota Department of Revenue website for the current year's brackets.
What is Minnesota's top income tax rate?
Minnesota's top marginal income tax rate is 9.85%, which applies to taxable income over $193,240 for single filers, over $321,450 for married filing jointly, over $257,340 for head of household, and over $160,720 for married filing separately (2024 thresholds).
Are Social Security benefits taxable in Minnesota?
Minnesota taxes a portion of Social Security benefits for higher-income filers. However, Minnesota provides a subtraction for Social Security income that phases out at higher income levels. Lower-income retirees may exclude all or most of their Social Security income from Minnesota taxable income. See the Minnesota Department of Revenue for current subtraction thresholds.
Does Minnesota have a local income tax?
No. Minnesota does not impose local or city income taxes. Only the statewide graduated income tax applies.
Official sources
- Minnesota income tax rates applied to capital gains (tax year 2024): Minnesota Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Minnesota Department of Revenue.