Taxes in Rochester
Minnesota levies a real, 4-bracket progressive state income tax (5.35% to 9.85%) with NO local or county piggyback layer -- genuinely among the highest state top marginal rates in the country -- while Olmsted County's own effective property tax rate runs comparatively moderate, near the low end of Minnesota's own statewide range.
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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 -- genuinely among the highest state top marginal income-tax rates in the country, per this build's own Minnesota market manifest research context.
No Local Piggyback Income Tax, But a Real Social Security Outlier
Like Wisconsin, Minnesota has NO local or county income-tax layer -- the state rate is the whole income-tax story. But Minnesota is also a real, genuine outlier among relocation-relevant states in still taxing Social Security retirement income above an income-based exemption threshold; most states have fully exempted it, and this record discloses that honestly.
Olmsted County's Own Comparatively Moderate Property Tax
As detailed in full on the property-taxes topic page, Olmsted County's own effective property tax rate ran approximately 1.06% -- near the low end of Minnesota's own statewide range of approximately 1.05%-1.15%, and genuinely more moderate than several other Tier A+ markets' county-level property tax rates covered elsewhere in this project.
A Real, Genuine Trade-Off Worth Weighing Together
Movers comparing Rochester against other markets should weigh Minnesota's genuinely high income-tax top rate together with Olmsted County's own comparatively moderate property tax rate, rather than evaluating either in isolation -- the combined picture, and a mover's own income level, matter more than either single figure.
Key takeaways
- Minnesota's state income tax is a real, 4-bracket progressive structure (5.35% to 9.85% on income over approximately $193,240, single filers).
- Minnesota has NO local or county piggyback income tax, but is a real, genuine outlier in still taxing Social Security income above an exemption threshold.
- Olmsted County's own effective property tax rate (approximately 1.06%) sits near the low end of Minnesota's own statewide range.
- Weigh Minnesota's high income tax together with Olmsted County's comparatively moderate property tax for the full real picture.
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