Skip to main content

In list of the best states to pay taxes, Minnesota comes 33rd

  • Author:
  • Updated:

This embed is invalid

Death and taxes are life's two certainties, and Minnesotans pay a little more of the latter.

The latest annual survey by WalletHub ranking each state based on how much state and local taxes its residents has to pay has Minnesota in 33rd place.

It found that Minnesotan households pay on average $6,140 in state and local taxes every year, which is 9 percent above the national average.

Considering the average U.S. household forks over $17,000 in federal taxes as well, this is a hefty outlay for Minnesotans (though not as bad as bottom-ranked Illinois, where households pay $7,719 in extra taxes.)

Sales tax accounts for the largest amount handed over the state coffers, with Minnesotans paying $2,212 on average a year, following by property taxes ($2,086), income tax ($1,546) and vehicle excise ($296).

While taxes are higher than average in Minnesota, another study by WalletHub last year finds that it pays for the best government services in the country.

WalletHub found that Minnesota ranked 17th on its best taxpayer ROI (return on investment) table, which declared Minnesota's government services to be number 1 in the United States.

Two years ago, Governor Mark Dayton and his cabinet raised taxes on Minnesota's higher earners (individuals earning over $150,000, couples earning $250,000), which had prompted fears that it would lead to richer residents fleeing the state.

But MPR reported in February that this hasn't materialized, with 6,230 more people filing in the top income tax bracket than expected in 2013.

Alaska has the cheapest taxes in the WalletHub rankings, with households paying just $2,993 a year on average.

Next Up

Screen Shot 2022-11-26 at 8.27.12 AM

St. Olaf football player charged after fatal crash in Chicago

The 18-year-old is accused of speeding and going the wrong way when he crashed into a vehicle that may have been attempting to flee police.

Screen Shot 2022-11-26 at 7.41.18 AM

Woman 34 weeks pregnant injured by drunk driver in Cottage Grove

The 49-year-old suspected of DUI was booked into jail around 1:30 a.m. Saturday.


2 dead, 5 injured in Thanksgiving Day crash near Alexandria

The crash involved two people from Alexandria and five from Bloomington.

Screen Shot 2022-11-25 at 6.44.11 PM

Lengthy standoff in Prior Lake ends late Friday night

The suspect allegedly assaulted an officer outside Kwik Trip, fled and broke into a home.

snow - 12-10-21 - Joe Nelson - 5

Accumulating snow possible in Twin Cities next week

The storm system could arrive in the Tuesday-Wednesday timeframe.

Target store snow

With Black Friday barely underway, Target reveals Cyber Monday deals

Plans for the two-day sale were revealed Friday morning.

Screen Shot 2022-11-25 at 9.37.25 AM

Man waves replica assault weapon at drivers in downtown Minneapolis

The alarming incident was spotted by the new MPD chief, Brian O'Hara.

Screen Shot 2022-11-25 at 9.29.58 AM

Extremely drunk driver arrested in Chaska

The driver was more than four times the legal limit.

Screen Shot 2022-11-25 at 8.21.21 AM

Stillwater police looking for suspect who stole vehicle with 1-year-old inside

The suspect abandoned the vehicle with the child still inside just 5 minutes after the theft.

Screen Shot 2022-11-23 at 5.01.34 PM

Suspected Bloomington restaurant killer arrested in Oklahoma

The 47-year-old Texas man was arrested around 12:30 a.m. Thursday.

Screen Shot 2022-11-24 at 9.16.39 AM

Minnetonka woman, 23, ID'd as victim killed in Minneapolis crash

The fatal crash happened near the Minneapolis Convention Center on Nov. 21.