Taxes in Duluth
Minnesota levies a real 4-bracket state income tax (5.35% up to a genuinely high 9.85% top rate over approximately $193,240) with NO local piggyback layer anywhere in the state -- but Duluth residents specifically pay a real, current combined 8.875% sales tax and St. Louis County's highest property tax rate, a real, mixed tax picture this record states plainly rather than letting the simple income-tax structure alone tell the story.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreMinnesota's 4-Bracket State Income Tax Carries No Local Layer -- But a Genuinely High Top Rate
Minnesota's real, current state income tax runs a 4-bracket progressive structure: 5.35%, 6.80%, 7.85%, and a top 9.85% bracket on income over approximately $193,240 for single filers, per this project's own Minnesota research context. Unlike Baltimore, MD, covered elsewhere in this project, where a local 'piggyback' income tax layers directly on top of the state rate, Minnesota levies NO local or county income tax add-on anywhere in the state -- but that 9.85% top rate is itself genuinely among the handful of highest state top marginal rates in the country, a real trade-off this record does not let the 'no local layer' simplification obscure.
A Real, Genuine Outlier: Minnesota Still Taxes Social Security Above an Exemption Threshold
Minnesota is a real, genuine outlier among relocation-relevant states in still taxing Social Security retirement income at the state level -- most states have fully exempted it. For 2026, Minnesota fully exempts Social Security benefits for single filers with income at or below approximately $86,410, phasing out above that threshold. Higher-income retirees can still owe real Minnesota state tax on Social Security benefits -- a genuinely distinct, honestly-disclosed retirement-relocation trade-off this record does not omit.
Property Tax: Duluth's Real, Standout-Within-County Cost Category
As detailed in full on the property-taxes topic page, Duluth's own effective property tax rate (approximately 1.34%) is the highest within St. Louis County and above Minnesota's genuine statewide ~1.05%-1.15% range -- a real, standout cost category the genuinely simple income tax structure does not offset.
Sales Tax: Duluth's Real, Current Combined Rate at Minnesota's Local-Option Maximum
Duluth's real, current combined sales tax runs 8.875% -- Minnesota's 6.875% state rate plus a 1.5% city local-option tax (the maximum Minnesota allows any city to levy) plus a 0.5% special tax. This is a real, disclosed ceiling permitted by state law, not an unusually aggressive city-specific choice beyond what Minnesota allows.
Property Taxes and Insurance: Pointers to Full Detail
Duluth-area property tax mechanics (the city's standout-within-county rate) are covered in full on the property-taxes topic page rather than repeated here, while Duluth's homeowners-insurance cost picture is covered on the homeowners-insurance topic page.
Key takeaways
- Minnesota's real 4-bracket state income tax runs from 5.35% up to a genuinely high top 9.85% bracket over approximately $193,240 -- among the nation's highest top rates, even with no local layer.
- Minnesota is a real, genuine outlier in still taxing Social Security above an income-based exemption (fully exempt up to ~$86,410 for single filers in 2026) -- a real retirement-relocation trade-off.
- Property tax is Duluth's real, standout-within-county cost category: Duluth's own ~1.34% effective rate is the highest of any community in St. Louis County.
- Duluth's real, current combined 8.875% sales tax sits at Minnesota's local-option maximum (1.5% city + 0.5% special, atop the 6.875% state rate).
- Duluth-area property tax mechanics and homeowners-insurance cost picture are covered in full on their own dedicated topic pages.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Duluth overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert