AARP Applauds Legislation Exempting More Minnesotans From Social Security Tax

En español | We’re thrilled that our advocacy helped pass legislation in Minnesota that will allow retirees to keep more of their Social Security income.

On May 21, state lawmakers passed a bill that will eliminate the state tax on Social Security benefits for three-quarters of the state’s recipients. People with taxable incomes up to $78,000, or $100,000 for a couple, would be exempt from paying state taxes on their benefits under the legislation, which Gov. Tim Walz signed on May 24.

The bill also raises the income threshold to qualify for a partial tax break to $118,000 for single filers and $140,000 for a couple (from $85,970 and $110,020, respectively).

Minnesota is one of only 12 states that tax residents’ Social Security income, although some states are in the process of eliminating their tax. 

While AARP Minnesota was pushing to end the tax, State Director Cathy McLeer said the legislation signed by the governor will bring “much-needed tax relief to retirees feeling pressure from rising health and long-term care costs and other expenses.”

AARP has been advocating around the country for legislation to eliminate or reduce state taxes on Social Security, notching recent wins in Nebraska, Vermont, New Mexico, Missouri and other states. 

Read more about AARP’s Social Security tax relief efforts and keep up with our advocacy work in Minnesota.