Budget & Taxes (Income Tax)

HF 11 establishes a new fifth tax bracket for individual income tax to cover losses from reduced federal Medicaid funding. It directly affects high-income earners in Minnesota by adding a new tax rate tier, with the specific rate set to match the amount of Medicaid funding lost due to federal changes. The bill’s key mechanism is creating this new tax bracket, which would generate revenue to offset the shortfall in state Medicaid funding. The bill was reported to the House on March 10, 2025, and is currently moving through the legislative process.