Roth conversion taxes in Minnesota (2026)
By Mario Bailey · Published · Last reviewed
Minnesota taxes Roth conversions as ordinary income at graduated rates up to 9.85%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Minnesota tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $1,321 | $4,597 | $3,275 | 6.6% |
| Single | $80,000 | $3,917 | $7,372 | $3,455 | 6.9% |
| Single | $150,000 | $8,942 | $12,867 | $3,925 | 7.8% |
| Married filing jointly | $40,000 | $503 | $3,333 | $2,830 | 5.7% |
| Married filing jointly | $80,000 | $2,653 | $6,053 | $3,400 | 6.8% |
| Married filing jointly | $150,000 | $7,413 | $10,813 | $3,400 | 6.8% |
Social Security and retirement income
Minnesota taxes at least a portion of Social Security benefits. Conversions can also raise the federally taxable share of your benefits through the provisional income formula, so the two interact.
Minnesota partially exempts Social Security benefits. For 2026, the full subtraction applies when provisional income is below ~$78,180 (single) or ~$105,380 (MFJ); it phases out completely above ~$106,000 (single) / ~$140,000 (MFJ). This file treats SS as taxable (exemptsSocialSecurity: false) which is conservative for higher-income filers. Lower-income retirees will over-estimate their MN tax. A future enhancement should model the phase-out formula. Military pensions fully exempt from 2024+; public-employee pensions (PERA/TRA/MSRS) have an income-tested subtraction not modeled here.
FAQ
Does Minnesota tax Roth conversions?
Yes. Minnesota taxes Roth conversions as ordinary income at graduated rates up to 9.85%. Federal tax applies on top.
Does Minnesota tax Social Security benefits?
Minnesota taxes at least some Social Security benefits at the state level. The federal provisional-income rules apply separately.
What is the top Minnesota rate on a conversion in 2026?
9.85% at the highest marginal rate.
Model your Minnesota conversion in the calculator
Rate data source: https://www.revenue.state.mn.us/press-release/2025-12-16/minnesota-income-tax-brackets-standard-deduction-and-dependent-exemption (MN DOR official 2026 announcement)