What is Minnesota's estate tax exemption?

Minnesota exempts the first $3 million of a taxable estate. Estates valued at or below $3 million owe no Minnesota estate tax, while only the portion above the exemption is taxed using the graduated bracket schedule.

What are Minnesota's estate tax rates?

Minnesota uses a graduated schedule that begins at 13% and rises to 16% on the largest estates. The marginal rate climbs in steps as the taxable estate grows beyond the $3 million exemption.

Is the Minnesota estate tax the same as the federal estate tax?

No. Minnesota's estate tax is separate and has a much lower $3 million exemption than the federal exemption of roughly $13 million. An estate can owe Minnesota tax while owing nothing federally.

Are transfers to a spouse taxed?

Property passing to a surviving spouse generally qualifies for the marital deduction and is not subject to Minnesota estate tax at the first death. Charitable bequests are similarly deductible from the taxable estate.

Does Minnesota have an inheritance tax too?

No. Minnesota imposes an estate tax paid by the estate before distribution, but it does not levy a separate inheritance tax on beneficiaries. Heirs receive their inheritance without an additional Minnesota tax on the receipt.

Minnesota Estate Tax Calculator

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Minnesota is one of a handful of states with its own estate tax, separate from the federal estate tax. This calculator estimates the Minnesota tax owed on a taxable estate above the state’s $3 million exemption using the graduated rate schedule.

How it works

The tool first computes the taxable estate, then applies Minnesota’s brackets to the amount above the exemption:

taxable estate = gross estate − deductions (debts, expenses, marital, charity)
amount over exemption = max(0, taxable estate − $3,000,000)
estate tax = graduated brackets applied to the amount over the exemption

Minnesota’s graduated rates run from 13% up to 16%. Because only the excess over $3 million is taxed, estates at or below the exemption owe nothing.

Example

A $5,000,000 taxable estate is $2,000,000 over the $3 million exemption. Applying Minnesota’s graduated brackets to that $2,000,000 yields roughly $260,000 in state estate tax, depending on the exact bracket structure in force.

Notes

This is a planning estimate, not tax or legal advice. Minnesota’s brackets and exemption can change, and a qualified small-business or farm deduction may apply to working farms and family businesses. Marital and charitable transfers are generally fully deductible. Confirm current figures at revenue.state.mn.us and consult an estate attorney for actual filings.