Capital Gains Tax Calculators Minnesota

Minnesota Capital Gains Tax Calculator

Minnesota taxes capital gains as ordinary income at graduated rates up to 9.85%, plus 1% on net investment income over $1 million (Minn. Stat. § 290.033). Estimate federal + state tax.

Minnesota taxes capital gains as ordinary income at its 2026 rates of 5.35% to 9.85%, and adds a separate 1% tax on net investment income above $1 million (Minn. Stat. § 290.033).

Minnesota capital gains rules, tax year 2026
Rule	Minnesota
Rate (single, 2026)	5.35% to $33,310; 6.80% to $109,430; 7.85% to $203,150; 9.85% above. Married filing jointly reaches 9.85% at $337,931.
Short- vs long-term	No difference.
Extra 1%	§ 290.033: 1% on net investment income over $1,000,000, on top of the regular tax.
Excluded from the 1%	Gain on class 2a property (agricultural homestead land) is left out of net investment income for the 1% tax.

Sources: Minnesota Department of Revenue, "Minnesota Income Tax Rates and Brackets" (2026 tables), read 2026-10-10; Minn. Stat. § 290.033, Net investment income tax, read 2026-10-10.

By StateCalc Team

Updated Oct 16, 2026 Estimate — not official figures

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Estimate only, not an official determination. What this estimate covers and its limits

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Purchase Price (Cost Basis)

$0$100,000,000

Sale Proceeds

$0$100,000,000

Holding Period (whole months)

1600

Filing Status

Additional Details

Other Federal Taxable Income

$0$5,000,000

MAGI Before This Gain (NIIT)

$0$5,000,000

Other Net Investment Income (NIIT)

$0$5,000,000

Modeled State Rate

015%

Pre-filled: Editable top/representative-rate proxy; not a state return calculation

Additional Details

Basis Adjustments / Improvement Costs

$0$50,000,000

Estimated Federal + State Tax

$12,425.00

Estimated • Based on your inputs

Estimated Net Sale Proceeds

$87,575.00

Your effective tax rate is 24.9%.

Detailed Breakdown

Modeled Gain$50,000.00

71%

Federal Effective Rate (incl. NIIT)15.00%

Federal Regular Tax$7,500.00

11%

Incremental NIIT$0.00

Estimated Federal Tax incl. NIIT$7,500.00

11%

Modeled State Tax$4,925.00

Combined Effective Rate24.85%

Long-Term?Yes

Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.

Minnesota Quick Facts

9.85% Income Tax Rate

1.00% Property Tax Rate

$87,117 Median Income

93.4 Cost of Living

How This Calculator Works

Calculation methodology and assumptions

The Minnesota line is the modeled gain times the 9.85% in the Modeled State Rate field, added to the federal estimate.

How the federal tax is estimated (the same in every state)

Estimate only — these are not official figures

State tax is not a return calculation: the 9.85% default is applied flat to the whole gain, so the brackets, thresholds and exclusions in the Minnesota table above are not computed.

Do not rely on these amounts for budgeting or payment. For exact amounts, check the Minnesota tax authority (https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets).

Key State Information

Minnesota is one of the few states with its own investment-income surtax. It reaches only very large sales: net investment income must pass $1 million before the 1% applies, and gain on class 2a farm property is excluded. Below that, a gain is taxed like wages, at up to 9.85%.

Standard financial formulas Pre-filled with documented models and state context Estimates only — not financial advice

Data Source

IRS Topic 409; IRS Rev. Proc. 2025-32; IRS NIIT guidance (state amount remains modeled)

View Original Source | Source record reviewed Aug 7, 2026 | Review target: annually

Data Source

Minnesota Department of Revenue, "Minnesota Income Tax Rates and Brackets" (2026 tables)

View Original Source | Source record reviewed Oct 10, 2026 | Review target: annually

Data Source

Minn. Stat. § 290.033, Net investment income tax

View Original Source | Source record reviewed Oct 10, 2026 | Review target: annually

Example Calculation

A married couple in Edina with $210,000 of other taxable income sells a block of a listed company's shares, bought for $300,000 eight years ago, for $1,450,000.

Entered as $300,000 basis, $1,450,000 proceeds, married filing jointly, $210,000 of other income: the calculator finds a $1,150,000 long-term (96 months) gain, $209,815 of regular federal tax plus $42,180 of net investment income tax, and $113,275 of Minnesota tax at the 9.85% default.

Result: $365,270 in total (31.76% of the gain), leaving $1,084,730. The calculator stops at the regular tax. With $1,150,000 of net investment income, Minn. Stat. § 290.033 adds 1% of the $150,000 above $1 million: another $1,500.

StateCalc Team

Editorial Team

The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.

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Frequently Asked Questions

What are the Minnesota income tax brackets for 2026?

For a single filer: 5.35% up to $33,310, 6.80% up to $109,430, 7.85% up to $203,150 and 9.85% above, per the Department of Revenue's 2026 tables. Capital gains are taxed in these brackets.

What is Minnesota's net investment income tax?

An additional 1% tax on net investment income above $1,000,000, imposed by Minn. Stat. § 290.033 on top of the regular income tax.

Does Minnesota's 1% investment tax apply to selling farmland?

Gain on class 2a property under section 273.13 is excluded from net investment income for that tax.