Minnesota capital gains tax, 2026
Minnesota taxes capital gains under its own rule: an extra 1% applies to net investment income above $1 million. On a $100,000 long-term gain, a single filer with $80,000 of other income pays $7,380 of Minnesota tax, on top of $15,000 federal.
Questions
Does Minnesota tax capital gains?
Yes, under its own rule: an extra 1% applies to net investment income above $1 million.
Does the rule apply to short-term gains?
No. Gains on assets held a year or less are taxed like other income.
State brackets for 2026 from the Tax Foundation; federal rates from IRS Rev. Proc. 2025-32. See every state. Estimates, not tax advice.
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