Minnesota Estate Tax: Threshold & Rates

Quick answer: exemption of $3,000,000, then a flat 13% up to $7.1M of taxable estate, climbing in steps to 16% above $10.1M. Run your own numbers in the Minnesota estate tax calculator.

The full bracket table, current law

Straight from Minn. Stat. §291.03(b): for estates of decedents dying in 2018 and thereafter: not over $7,100,000 is taxed at 13 percent; over $7,100,000 but not over $8,100,000 is $923,000 plus 13.6 percent of the excess over $7,100,000; over $8,100,000 but not over $9,100,000 is $1,059,000 plus 14.4 percent of the excess; over $9,100,000 but not over $10,100,000 is $1,203,000 plus 15.2 percent of the excess; and over $10,100,000 is $1,355,000 plus 16 percent of the excess. This table applies to the Minnesota taxable estate, already net of the $3,000,000 exclusion.

A rate that climbed, then flattened at the bottom

Minnesota's entry rate has moved over the years — 9% in 2014, 10% in 2015-2016, 12% in 2017, and 13% for decedents dying in 2018 and thereafter, where it has stayed since. Unlike states that ease in at a low single-digit rate, Minnesota's very first dollar above the exemption is taxed at 13%.

An apportionment fraction for multi-state estates

The computed tax is multiplied by a fraction — the value of the Minnesota-situs gross estate (plus certain Minnesota-situs gifts) divided by the full federal gross estate — so a decedent with property spread across several states pays Minnesota tax only on the Minnesota-apportioned share. For a Minnesota resident with everything in-state, this fraction is simply 1.

Two narrow deductions, with a real recapture risk

Qualified small business property and qualified farm property can each receive a separate exclusion from the taxable estate — but if the qualified heir disposes of the property, or the business or farm stops qualifying, within three years of death, a recapture tax equal to 16% of the claimed exclusion becomes due six months after that disposition.

Facing probate in Minnesota?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Minnesota attorney

Form M706 is due 9 months after death, the same deadline as the federal Form 706.

Threshold & rates — frequently asked questions

What is the exact Minnesota estate tax bracket table?

For a Minnesota taxable estate not over $7,100,000, the rate is a flat 13%. From $7,100,000 to $8,100,000 it's $923,000 plus 13.6% of the excess; $8,100,000 to $9,100,000 is $1,059,000 plus 14.4%; $9,100,000 to $10,100,000 is $1,203,000 plus 15.2%; and above $10,100,000 it's $1,355,000 plus 16%.

Why does Minnesota's lowest bracket start at 13%?

That's simply where the legislature set the rate schedule — it has climbed from 9% in 2014 to 13% for decedents dying in 2018 and thereafter, and unlike many other states with a lower entry rate, Minnesota applies 13% from the very first dollar above the exemption.

Is there an apportionment adjustment for out-of-state property?

Yes — the computed tax is multiplied by a fraction: the value of the Minnesota-situs gross estate (plus certain gifts) divided by the full federal gross estate. For a Minnesota resident with all assets in-state, this fraction is 1 and doesn't change the result.

Are there special deductions for a small business or farm?

Yes — qualified small business property and qualified farm property can each receive a separate deduction, but if the qualified heir disposes of the property or stops qualifying within three years, a recapture tax equal to 16% of the claimed exclusion becomes due.

This page provides general guidance only and is not legal or tax advice. Based on Minn. Stat. §291.03, §291.016. Confirm current figures with the Minnesota Department of Revenue or a licensed attorney before acting.