Minnesota vs Texas taxes

Where the difference comes from

Federal income tax, Social Security and Medicare are identical in the two states, and Texas adds nothing. The whole gap is Minnesota’s, in two lines.

Income tax. Minnesota’s rates start at 5.35%, with no low opening band, and step up to 6.80%, 7.85% and 9.85%. A single filer first deducts $15,300. On $75,000 the tax is $3,577.

Minnesota Paid Leave. New in 2026, at up to 0.44% of wages: $330 on $75,000. It stops at the Social Security wage base of $184,500, so it never exceeds $811.80 a year.

Together they cost a single filer $3,907 a year on $75,000. The effective rate on the whole salary, federal taxes included, is 23.1% in Minnesota and 17.9% in Texas.

A gap that grows faster than pay

Minnesota’s rate on each extra dollar rises through its brackets, so the gap climbs faster than the salary: $2,097 on $50,000, $9,602 on $150,000 and $18,235 on $250,000. As a share of pay that is 4.2% at $50,000 and 8.6% at $500,000. The top rate applies from $203,150 of taxable income for a single filer.

Couples do slightly worse. Minnesota doubles the standard deduction for a joint return, but its joint brackets are less than twice as wide as the single ones. A couple filing jointly on $150,000 pays $260 more Minnesota income tax than two single people on $75,000 each, and keeps $8,073 more in Texas.

One thing works in Minnesota’s favor over time. Its brackets are indexed to inflation every year by law, so a raise that only keeps up with prices does not push you into a higher band.

Moving from Minnesota to Texas

The saving starts when your Minnesota residency ends. The Minnesota Department of Revenue treats you as a nonresident only if you are a permanent resident of another state and spent less than 183 days in Minnesota, so keeping a home there and spending long summers in it deserves care.

A job can come with you. The same page says that if you work in another state for a business located in Minnesota, that income is not taxable in Minnesota. Wages for days you work while physically in Minnesota may still be.

What the take-home figure does not count

Texas raises its money elsewhere, mainly through local property tax and sales tax, and for a homeowner the property tax bill on a particular house can take back a real share of the income tax saving. Minnesota taxes Social Security benefits above set income thresholds, and Texas taxes no retirement income at all; this page models wages only. Housing costs are not in these figures.

Questions people ask

Do you take home more in Minnesota or Texas on $75,000?

Texas, by $3,907 a year, or $326 a month, for a single filer in 2026. That counts federal tax, Social Security, Medicare, state income tax and every state payroll deduction.

Is the difference the same at every salary?

No, but the same side stays ahead. The gap is $918 a year at $30,000 and $18,235 at $250,000, for a single filer.

If I move from Minnesota to Texas, when does Minnesota stop taxing me?

When you stop being a Minnesota resident. The Minnesota Department of Revenue treats you as a nonresident only if you are a permanent resident of another state and spent less than 183 days in Minnesota. For the year you move, Minnesota's return has a schedule for nonresidents and part-year residents, Schedule M1NR.

Can I keep a Minnesota job and work remotely from Texas?

For income tax, yes. The Minnesota Department of Revenue says a nonresident working in another state for a Minnesota business does not owe Minnesota tax on that income. Days you work while physically in Minnesota can still be taxable there.

What is the Minnesota Paid Leave line?

A state paid family and medical leave program whose premiums began in 2026. The premium is 0.88% of wages; the employer pays at least half and may deduct up to 0.44% from employees, which is what this page assumes. Texas has no equivalent, and its unemployment insurance is paid by employers.

What this comparison covers

Income tax and payroll deductions on wages: federal income tax, Social Security, Medicare, state income tax, every state payroll deduction. It does not compare sales tax, property tax, housing or the cost of living, which can outweigh the difference in take-home pay. Figures assume the standard deduction, no dependents and no pre-tax retirement contributions. See how we calculate.