How much new tax will high-income MN residents pay? Depends

3:37 PM, May 22, 2013   |    comments
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ST. PAUL, Minn. - 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 by The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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