Minnesota child credit expanded, and fifth tier and rate on the individual income tax established.

This bill expands the Minnesota child credit and establishes a new fifth tax bracket for individual income tax. It directly affects Minnesota residents and non-residents by adjusting income tax rates and brackets for different filing statuses, including married couples, single filers, and heads of household. The key provision introduces a 10.15 percent tax rate on income exceeding $1 million for married couples, $600,000 for single filers, and $800,000 for heads of household, while also creating a mechanism for annual inflation adjustments to these income thresholds. These changes are set to take effect for taxable years beginning after December 31, 2025.