All income tax reduction by 3.25 percentage points provision

SF 421 reduces all Minnesota individual income tax rates by 3.25 percentage points across every tax bracket. It directly affects all Minnesota individual income taxpayers, including married couples filing jointly, single filers, heads of household, and non-residents. The bill amends Minnesota Statutes section 290.06 to lower rates from 5.35% to 2.1% on the lowest bracket, 6.8% to 3.55% on the next, 7.85% to 4.6%, and 9.85% to 6.6% on the highest bracket. This uniform rate reduction applies to all taxable income levels and takes effect for tax years beginning after December 31, 2024.