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Number of Resident Returns that Would Have Been Subject to the 4th Tier Bracket

If the 4th Bracket Had Been In Effect Prior to Tax Year 2013
And Number Actually Subject to 4th Tier Bracket in Tax Year 2013
70,000
61,346
60,000

60,630

57,064
54,121
50,135

Number of Resident Returns

50,000

46,724
40,215

40,000

The pattern between 2007 and


2012 reflects the impact of the
Great Recession. The slight
decline in 2013 was expected due
to the sharp drop in capital gains
income nation-wide between
2012 and 2013.*

30,000

20,000

10,000

0
2007

2008

2009

2010

2011

2012

2013
actual

Tax Year

Thresholds for 4th Tier (Indexed for Inflation)


Tax Year Married Filing
Joint Return

Head of
Household

Single

2007
2008
2009
2010
2011
2012

$
$
$
$
$
$

219,470
224,490
234,060
234,500
237,960
243,740

$
$
$
$
$
$

2013
2014

$
$

250,000 $
254,240 $

131,680
134,700
140,440
140,700
142,780
146,240

$
$
$
$
$
$

150,000 $
152,540 $

175,580
179,600
187,250
187,600
190,370
194,990

Married Filing
Separately

Total
Full-Year
Resident
Returns

$
$
$
$
$
$

109,740
112,250
117,030
117,250
118,980
121,870

2,474,346
2,454,019
2,466,657
2,439,867
2,474,395
2,492,267

200,000 $
203,390 $

125,000
127,120

2,531,656
N/A

Full-Year Resident Returns


Subject to 4th Tier
(If It Had Been In Effect)
Number
Percent
57,064
2.3%
50,135
2.0%
40,215
1.6%
46,724
1.9%
54,121
2.2%
61,346
2.5%
Years 4th Tier In Effect
60,630
2.4%
N/A
N/A

Note: Counts are based on the total population of Minnesota full-year resident filers in each year. Numbers assume that the thresholds
would have been at the same level in the earlier years as are now in effect, but adjusted downward for inflation because the current-law
brackets are indexed for inflation.
*See page 47 of the November 2014 Budget and Economic Forecast, which notes a 31.7% drop in capital gains, 9.6% drop in dividends,
and 10.0% drop in interest income between 2012 and 2013. www.mn.gov/mmb/images/Budget%2526Economic_Forecast_Nov2014.pdf

Tax Research Division


Minnesota Department of Revenue
Updated January 28, 2015 to include tax year 2013