Does Minnesota tax pensions and retirement income?
Taxed, with narrow exceptions
Yes, generally. Minnesota's main break is a subtraction for qualifying public pensions that were not earned with Social Security coverage, up to $13,540 single or $27,080 joint, with income limits.
In the state's own words
Copied word for word from the official document linked below each quote:
“Your payments are not based on service for which you also earned credit toward Social Security benefits.”
“Single | $13,540 | Head of Household | $13,540 | Married Filing Jointly | $27,080”
And Social Security?
Partly. Minnesota lets you subtract all of your taxable Social Security if your adjusted gross income is below $108,320 (married filing jointly) or $84,490 (single or head of household). Above that, a smaller subtraction may still apply. The Minnesota Social Security page quotes the rule.
Federal tax still applies
Whatever Minnesota does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Minnesota Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Qualified Public Pension SubtractionMinnesota Department of Revenue. Read on November 12, 2026.