Minnesota DOR Announces Adjusted Individual Income Tax Brackets, Standard Deduction, Dependent Exemption Amounts for 2022

The Minnesota Department of Revenue (DOR) Dec. 14 announced an adjustment of 3.115 percent to the state’s individual income tax brackets for tax year 2022. The annual adjustment prevents taxpayers from paying taxes at higher rates solely because of inflationary changes. The announcement includes: 1) an inflation factor is used to adjust the brackets, and the inflation factor is based on changes in the U.S. chained consumer price index for all urban consumers; 2) the adjustment doesn’t change the state tax rate that applies to each income bracket; 3) taxpayers who make quarterly payments of estimated tax should use the ...