Calculate your federal and Minnesota capital gains tax liability
Calculate Your
Minnesota Capital Gains Tax
Minnesota taxes capital gains as ordinary income using a progressive system with rates up to 9.85%.
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Minnesota Capital Gains Tax Highlights
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Calculate your capital gains tax for Minnesota
📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.
📊 Choose your investment holding period
Calculator optimized for Minnesota tax rates
Tax Calculation Results
How Minnesota Taxes Capital Gains
Minnesota taxes capital gains as ordinary income using a progressive system with rates up to 9.85%.
2025 Tax Brackets
Minnesota Tax Details
Tax Rate Structure
Capital gains are taxed as ordinary income using progressive tax brackets.
Key Requirements
Minnesota Tax Strategies
- • Consider timing of asset sales for tax efficiency
- • Coordinate with federal capital gains strategies
- • Review loss harvesting opportunities
• Consult with Minnesota tax professional for complex situations
Related Tax Services
Real Estate in Minnesota
Real estate capital gains in Minnesota are subject to both federal and state tax considerations:
Minnesota Real Estate Tax Rate
Real estate capital gains in Minnesota are taxed as ordinary income up to 9.85%.
Primary Residence
Federal Rules
Minnesota State Rules
State tax applies to gain above federal exclusion
Must file state return if gain exceeds exclusion
Additional Requirements:
- • Follows federal IRC Section 121.
Investment Property
Tax Deferral Strategies
1031 Like-Kind Exchanges
Defer federal taxes on investment property exchanges
Transfer Costs
Transfer Tax
Local Variations:
- • Hennepin and Ramsey counties may have an additional environmental response fund tax.
Available Exemptions:
- • Certain family transfers
- • Gifts
- • Transfers to secure a debt.
Recording Fees
Additional Fees:
- • A Mortgage Registry Tax of 0.23% of the debt amount is also due.
Special Deductions & Notes:
- • Requires a five-year subtraction for the disallowed bonus depreciation.
Investment & Tax Services
Property Tax Exemptions
Homestead
$76K
Maximum exemption
Veteran
$300K
Disabled veteran exemption
Minnesota Real Estate Specifics
Mortgage Registry Tax: 0.23% of the secured debt
• Minnesota has a State Deed Tax (0.33%) and a Mortgage Registry Tax (0.23%) due on real estate transactions.
• Minnesota does not conform to federal bonus depreciation and requires an 80% add-back in the first year.
• The Homestead Market Value Exclusion reduces the taxable value of a primary residence.
Real Estate & Investment Services
Minnesota Filing Requirements
Due Dates
Required Forms
- • Form M1
- • Capital gains schedule
- • Federal Form 8949 & Schedule D
Payment Options
- • Online payment portal
- • Electronic funds transfer
- • Check or money order
Tax Professional Services
Compare Minnesota to Other States
Tax Calculation Results
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