With Gov GoogleyEyes at the helm, and a fully Democrat Senate & House, the damages from the most recent legislative session will become evident, and the State of MN will soon be vying for #1!
There is a reason I am a former taxpayer in the Land of 10,000 Lakes.
No. 4: Minnesota
State income tax: 5.35 percent to 9.85 percent
State sales tax: 6.875 percent
Estate tax/inheritance tax: Yes/No
Maybe long winters aren't the only reason seniors leave this state for warmer climes. The North Star State taxes Social Security income to the same extent as the federal government does (up to 85 percent). Pensions are taxable regardless of whether they're military, government or private pensions. As of 2013, the state added a new top income tax rate of 9.85 percent on taxable income of more than $150,000 for single filers and more than $250,000 for joint filers.
Food, clothing, and prescription and nonprescription drugs are exempt from the state sales tax. A few cities and counties also add their own sales tax.
Median property tax on a $200,400 median-valued home is $2,098, according to the Tax Foundation. Homeowners of any age may be eligible for a state-paid refund for homeowners whose property taxes are high relative to their incomes. About one-third of homeowners will receive a refund in 2014, averaging $840.
Minnesota taxes estates valued at more than $1 million. Assets left to a surviving spouse are exempt. The maximum tax rate is 16 percent. On July 1, the state added a gift tax of 10 percent, with a lifetime credit of $100,000 and an annual exemption amount indexed to inflation (for 2013, it's $14,000 per recipient). The credit protects up to $1 million in lifetime gifts.
Footnote: The numbers Kiplinger cites in their descriptive are very much understated. Example: the estate tax caps out above 41%, not 16%. And the real estate tax rate cited has to be for the town of Crookston, MN. It certainly is not representative of the tax rates in the metropolitan area.
So...maybe MN is already #1.