Minnesota Legislature
SF 953
as introduced - 94th Legislature (2025 - 2026) Posted on 02/10/2025 06:28pm
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A bill for an act
relating to taxation; estate; providing for a ten-year phaseout of the estate tax;
amending Minnesota Statutes 2024, section 291.03, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 291.03, subdivision 1, is amended to read:
Subdivision 1.
Tax amount.
new text begin (a) new text end The tax imposed must be computed by applying to the
Minnesota taxable estate the following schedule of rates and then the resulting amount
multiplied by a fraction, not greater than one, the numerator of which is the value of the
Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause
(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus
the value of gifts under section 291.016, subdivision 2, clause (3):
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(a) For estates of decedents dying in 2017:
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|
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Amount of Minnesota Taxable Estate deleted text end |
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Rate of Tax deleted text end |
|
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Not over $5,100,000 deleted text end |
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12 percent deleted text end |
|
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Over $5,100,000 but not over $7,100,000 deleted text end |
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$612,000 plus 12.8 percent of the excess over $5,100,000 deleted text end |
|
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Over $7,100,000 but not over $8,100,000 deleted text end |
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$868,000 plus 13.6 percent of the excess over $7,100,000 deleted text end |
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Over $8,100,000 but not over $9,100,000 deleted text end |
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$1,004,000 plus 14.4 percent of the excess over $8,100,000 deleted text end |
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Over $9,100,000 but not over $10,100,000 deleted text end |
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$1,148,000 plus 15.2 percent of the excess over $9,100,000 deleted text end |
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Over $10,100,000 deleted text end |
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$1,300,000 plus 16 percent of the excess over $10,100,000 deleted text end |
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(b) For estates of decedents dying in 2018 and thereafter:
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| Amount of Minnesota Taxable Estate |
Rate of Tax |
| Not over $7,100,000 |
13 percent |
| Over $7,100,000 but not over $8,100,000 |
$923,000 plus 13.6 percent of the excess over $7,100,000 |
| Over $8,100,000 but not over $9,100,000 |
$1,059,000 plus 14.4 percent of the excess over $8,100,000 |
| Over $9,100,000 but not over $10,100,000 |
$1,203,000 plus 15.2 percent of the excess over $9,100,000 |
| Over $10,100,000 |
$1,355,000 plus 16 percent of the excess over $10,100,000 |
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(b) Beginning July 1, 2025, and each July 1 thereafter through June 30, 2034, the
commissioner shall:
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(1) reduce the rates in paragraph (a) by 1.6 percentage points until each rate equals zero.
If a reduction reduces the rate to less than zero, the rate for that bracket is deemed to be
zero; and
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(2) reduce the amounts added to the rate brackets according to the adjustment under
clause (1) until each amount is reduced to zero.
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new text begin EFFECTIVE DATE. new text end
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This section is effective for estates of decedents dying after June
30, 2025.
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