Minnesota state officials are expanding the state's income tax brackets to account for inflation.
Individual income tax brackets will expand 2.4 percent for 2012, according to the Minnesota Department of Revenue. The state's tax brackets have expanded nearly 35 percent since tax year 2000.
State revenue officials are required to adjust the tax brackets to account for inflation. The tax rates remain the same. Revenue officials adjust the brackets based on changes in the U.S. Consumer Price Index for urban areas.
For 2012, a married couple filing jointly with an annual income of up to $34,590 would pay 5.35 percent in state tax. Couples making $34,591 to $137,430 pay 7.05 percent. Couples making more than $137,430 pay 7.85 percent, the highest tax rate.
A single Minnesota making up to 23,670 would pay the lowest rate. Individuals making $23,671 to $77,730 would pay the medium tax rate. Anyone earning more than $ 77,730 pays the highest rate.
