Skip to main content

New state gift tax begins today

  • Author:
  • Updated:

A new state gift tax that went into effect Monday makes Minnesota the second state in the country to tax gifts between residents. But only the wealthy will pay the price; the new tax only applies to gifts of $1 million or more over a lifetime.

The Pioneer Press reports the tax was included in the omnibus tax bill approved by the Legislature. The Minnesota Department of Revenue expects it to generate about $13.5 million in 2014.

The new law is similar to, and imposed in addition to, a federal gift tax law. Both place a 10 percent tax on gifts worth more than $14,000 to a single recipient in a single year. Married couples can combine their $14,000 and would then have to give gifts totaling $28,000 to trigger the tax. Married couples may also elect to combine their $100,000 lifetime credits. Gifts between spouses and gifts to charity are exempted from the new tax.

Business owners hoping to pass down their businesses to their children before they die will now pay a gift tax if the business is valued at more than $1 million.

Next Up


Minnesota nurses take vote on whether to hold second strike

The results will be determined Wednesday night.

unsplash medical marijuana

OCD, irritable bowel syndrome added to MN's medical marijuana list

They are the two latest qualifying medical conditions for Minnesota's marijuana program.

Screen Shot 2022-11-30 at 9.27.45 AM

Fundraiser created for family-owned Cô Tu' Oriental Cuisine after shooting

Support from the community will go towards medical expenses and overhead costs for the restaurant.

Erica Shameka Roberts

Police: Minnesota murder suspect arrested in Texas

Erica Roberts has been on the run since March.


Jackknifed semis close I-35 northbound near Faribault

There are icy conditions across Minnesota

court room

Red Lake man gets 12 years for murder of his cousin

Charges state the man beat the victim with a metal cabinet and its drawers.

Snow covering cars in Twin Cities

How much snow fell in Minnesota on Tuesday?

More than eight inches fell in parts of the Twin Cities.


Runways shut down at MSP Airport due to heavy snow

Some spots in the Twin Cities could see up to 8 inches of snow on Tuesday.