1. Minnesota
If you are a married couple and you plan to file a joint return, the state will deduct up to $5,290 of your federally taxable Social Security benefits. This also applies to single people, and it can reach up to $4,130. The deduction is phased out for married couples that have more than $80,270 of provisional income, and it’s reduced to zero for those who have more than $106,720 of provisional income.
In Minnesota, the average property tax rate is $1,106 per $100,000 of assessed home value.
When it comes to any inheritance and estate taxes, Minnesota’s tax exemption is $3 million, but the state wants to include any taxable gifts that were made within three years prior to death as a part of your personal estate. And the taxes will be between 13% and 16%.
