Taxes in Bloomington
Minnesota levies a real, 4-bracket progressive state income tax topping out at 9.85% -- among the nation's highest top rates -- with no local piggyback layer, and is a real, genuine outlier in still taxing Social Security income above an income-based exemption threshold.
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Learn moreMinnesota's Real, Genuinely High 4-Bracket State Income Tax
Minnesota's state income tax is a real, 4-bracket progressive structure: 5.35%, 6.80%, 7.85%, and a top rate of 9.85% on income over approximately $193,240 for single filers in 2026 -- among the handful of highest state top marginal income-tax rates in the country, this record states with precision.
No Local Piggyback Income Tax -- A Real, Genuine Simplification
Minnesota has NO local or county income-tax layer on top of its own state rate -- the state rate is genuinely the whole income-tax story for Bloomington residents, regardless of which Minnesota county or municipality they live in, a real simplification relative to states with county-level income-tax layers documented elsewhere in this project.
A Real, Genuine Outlier: Minnesota Still Taxes Social Security Income
As detailed on the retiring topic page, Minnesota is a real, genuine outlier among relocation-relevant states in still taxing Social Security retirement income above an income-based exemption threshold: for 2026, filers below $86,410 (single) or $110,780 (joint) owe no state tax on Social Security benefits, phasing out fully by $126,410 (single) / $150,780 (joint).
Hennepin County's Own Property Tax Runs Above Average Too
As detailed in full on the property-taxes topic page, Hennepin County's own effective property tax rate ran approximately 1.15%-1.19% -- the highest of Minnesota's 87 counties, genuinely above both the national median and Minnesota's own statewide average.
Key takeaways
- Minnesota's state income tax is a real, 4-bracket progressive structure (5.35% to 9.85% on income over ~$193,240, single filers).
- Minnesota has NO local or county piggyback income tax -- a real, genuine simplification for Bloomington residents.
- Minnesota is a real, genuine outlier in still taxing Social Security income above an income-based exemption threshold ($86,410 single, 2026).
- Hennepin County's own effective property tax rate (approximately 1.15%-1.19%) is the highest of Minnesota's 87 counties.
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