A new bill from Senator Mike Goggin (R-Red Wing) would encourage seniors to stay in Minnesota after retirement by fully exempting Social Security income from Minnesota state income taxes. Under Sen. Goggin’s bill, the entire amount of Social Security benefits received by an individual could be subtracted from their income taxes.

“This is one of the most commonsense proposals on the table right now,” said Sen. Goggin. “These men and women worked hard the entire lives, they have contributed significantly to their community, and they have already paid taxes on this income. Let’s let them keep the benefits they’ve earned and show them we want them to stay here in retirement.”

In 2017, Senate Republicans began the process of phasing out taxes on Social Security income, which is taxed twice under current law – once when it is taken out of your pay check, and again when you receive your benefit after retirement. Minnesota is one of thirteen states that still taxes Social Security benefits.

Facts about Social Security income in Minnesota:

• Minnesota is one of thirteen states that taxes Social Security benefits.
• Minnesota ranked number one on Kiplinger’s list of the “Least Tax-Friendly States for Retirees,” according to their 2018 report. https://www.kiplinger.com/slideshow/retirement/T037-S001-10-least-tax-friendly-states-for-retirees-2018/index.html

The bill was laid over and will be considered as part of a larger tax relief bill later in session.