Minnesota HF3954 amends income and property tax laws by introducing a subtraction for overtime income, expanding the Minnesota child tax credit.

Minnesota HF3954 modifies the state's tax laws by allowing a subtraction for certain overtime income, expanding the Minnesota child tax credit to $2,000 per qualifying child, and increasing property tax refunds by 11.9% for claims filed based on taxes payable in 2026. The bill also establishes a new fifth tier individual income tax rate, effective for taxable years beginning after December 31, 2025. The new tax rates vary based on income brackets and filing status, with the highest rate set at 11.45%.

Minnesota HF3954 amends income and property tax laws by introducing a subtraction for overtime income, expanding the Minnesota child tax credit.

Minnesota HF3954 modifies the state's tax laws by allowing a subtraction for certain overtime income, expanding the Minnesota child tax credit to $2,000 per qualifying child, and increasing property tax refunds by 11.9% for claims filed based on taxes payable in 2026. The bill also establishes a new fifth tier individual income tax rate, effective for taxable years beginning after December 31, 2025. The new tax rates vary based on income brackets and filing status, with the highest rate set at 11.45%.