East Twin Cities

Minnesota is one of the least tax-friendly states, based on an extensive study.

According to TheCenterSquare.com, Minnesota has been ranked 47th least tax-friendly of all 50 states in a study completed and published on 24/7 Wall St. 

The study used data from a 2018 report that was conducted by Washington’s Institute on Taxation and Economic Policy, which did not include data on federal taxes. 

According to 24/7 Wall St., the average top 1 percent of income earners in Minnesota earn $1.5 million per year.

“Nationwide, the top-earning 1 percent of families pay 7.4 percent of what they make toward state and local levies, the ITEP study concluded. The middle 20 percent of U.S. earners, in contrast, paid more – 9.9 percent,” the study said.

Naturally, states with no or low income tax rates were the friendliest for wealthy and high-earning individuals.

According to the study, the most tax-friendly states for the wealthy include Nevada in first place with 1.9 percent effective tax rate for the 1 percent, Florida in second place with 2.3 percent for the top 1 percent, South Dakota and Alaska in third place and fourth places, respectively with 2.5 percent tax rates on the top 1 percent and Wyoming with 2.6 percent for the top 1 percent.

The five worst states for high income earners including Minnesota in 47th place were Maryland in 45th place, which taxes 9 percent on the top 1 percent, Vermont in 48th place with a 10.4 percent tax of the top 1 percent, New York at 11.3 percent taxation of the top 1 percent and California, which takes 12.4 percent from the top 1 percent earners in the state. 

The study also stated that Minnesota’s state and local tax revenue from income taxes is 31.9 percent.