Minnesota Capital Gains Calculator

Calculate your federal and Minnesota capital gains tax liability

2025

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

Top rate 9.85%
Taxes as ordinary income
One of the highest state tax burdens
y

Enter Your Investment Details

Calculate your capital gains tax for Minnesota

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📊 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

Your capital gain is: $0.00
Estimated capital gains tax: $0.00
Federal Tax: $0.00
Minnesota Tax: $0.00
Net Proceeds After Tax: $0.00
Effective Tax Rate: 0.00%
Disclaimer: Estimate excludes NII taxes, deductions, credits, and losses. Consult a tax advisor.

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

0% Rate (Single): Up to $48,350
15% Rate (Single): $48,351 - $533,400
20% Rate (Single): Over $533,400

Minnesota Tax Details

Tax Rate Structure

Top Rate: 9.85%

Capital gains are taxed as ordinary income using progressive tax brackets.

Key Requirements

Filing Required: If gain exceeds threshold
State Due Date: April 15

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

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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

Federal Exclusion: $250K/$500K
Holding Period: 2 of 5 years

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

1031 Conformity: ✓ Yes
Bonus Depreciation: ✗ Not Allowed

Transfer Costs

Transfer Tax

State Rate: 0.33% of the net consideration (State Deed Tax)
Paid By: seller
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

Deed Recording: $46 flat fee.
Mortgage Recording: $46 flat fee.
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.

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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.

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Minnesota Filing Requirements

Due Dates
Annual Return: April 15
Extension: October 15
Quarterly Est.:
January 15
April 15
June 15
September 15
Required Forms
  • • Form M1
  • • Capital gains schedule
  • • Federal Form 8949 & Schedule D
Payment Options
  • • Online payment portal
  • • Electronic funds transfer
  • • Check or money order

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Compare Minnesota to Other States

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© 2025 CapitalGainsTaxCalculator.us - For informational purposes only. Consult a tax professional for advice.