Minnesota HF2591 establishes a fifth tier of individual income tax to offset lost federal Medicaid funds.

Minnesota HF2591 amends the state's individual income tax code by adding a fifth tax tier. This new tier is designed to generate revenue equivalent to the loss in federal Medicaid funds anticipated in fiscal years 2026 and 2027 due to federal policy changes. The bill specifies tax rates for different income brackets, with the highest bracket applying to incomes over $1,667,000. The Commissioner of Revenue is tasked with calculating the necessary tax rate for this fifth tier, based on an estimate provided by the Commissioner of Management and Budget.

Minnesota HF2591 establishes a fifth tier of individual income tax to offset lost federal Medicaid funds.

Minnesota HF2591 amends the state's individual income tax code by adding a fifth tax tier. This new tier is designed to generate revenue equivalent to the loss in federal Medicaid funds anticipated in fiscal years 2026 and 2027 due to federal policy changes. The bill specifies tax rates for different income brackets, with the highest bracket applying to incomes over $1,667,000. The Commissioner of Revenue is tasked with calculating the necessary tax rate for this fifth tier, based on an estimate provided by the Commissioner of Management and Budget.