Monday, November 24, 2014

Minnesota income tax brackets for 2015

 ST. PAUL, Minn. – The Minnesota Department of Revenue is required by law to adjust individual income tax brackets for inflation each year. For tax year 2015, the state’s individual income tax brackets will change by 1.58 percent from tax year 2014. Indexing for inflation of individual income tax brackets first began in 1979 and has continued every year since, except from 1987 to 1990.
This annual adjustment will prevent taxpayers from paying taxes at a higher rate solely because of inflationary changes in their income. The adjustment does not change the Minnesota tax rates that apply to each income bracket.
The bracket adjustments are based on the change in the U.S. Consumer Price Index for all urban consumers for the average of the 12 months ending August 2014 compared to the average of the twelve months ending August 2012. The department adjusts the brackets each year by the inflation factor and rounds the result to the nearest $10.
The brackets apply to tax year 2015. Taxpayers who make quarterly payments of estimated tax should use the following rate schedule to determine their payments, which are due starting in April 2015.
2015 Minnesota Income Tax Brackets

Marginal Tax Rates
Married, Filing Jointly
and over
Married, Filing Separately
$ 72,811—$129,130 ­
and over
Head of Household
and over
$ 82,361—$154,950
and over
The marginal tax rate is the rate of tax paid on a particular range of income.
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