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Legislative News and Views - Rep. Jessica Hanson (DFL)

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RELEASE: Rep. Jess Hanson Introduces Bill to Increase the Income Threshold for Social Security Income Tax

Friday, March 10, 2023

SAINT PAUL, Minn. - Yesterday, the Minnesota House Taxes Committee heard House File 1040, authored by Rep. Jess Hanson (DFL - Burnsville). The bill increases the income thresholds for Minnesotans before Social Security Benefits are taxed.

“Minnesotans believe we should have an equitable economy across the board,” said Rep. Hanson. “With that said, I believe those on fixed incomes including seniors, on the margins of our economy, need our help to address rising costs of housing, food, and more. This bill stands strong in our values to help those in need while avoiding tax cuts for the richest Minnesotans who have told us loud and clear that they don’t need it.”

Minnesota currently allows a subtraction for a portion of a taxpayer’s Social Security benefits that are subject to federal tax. Rep. Hanson’s legislation fully exempts Social Security benefits from state taxation for Minnesotans with adjusted gross income below $80,000 (for married joint returns) or $62,500 (for single or head of household returns). The subtraction would be phased down based on adjusted gross income instead of provisional income, as well as holding harmless anyone who currently isn’t impacted from a change. 

This bill was heard in the 2022 session and was included in the 2022 House Taxes omnibus bill. The bill was laid over by the committee for further discussion.