Minnesota child credit expanded, and fifth tier and rate on the individual income tax established.
Summary
HF4890 would change Minnesota’s individual income tax structure by adding a new top bracket, effectively creating a fifth tier for high-income taxpayers. The bill raises the income thresholds for the existing brackets and adds a 10.15 percent rate on income above $1,000,000 for married joint filers, above $600,000 for single filers, and above $800,000 for head-of-household filers. It also updates the inflation-adjustment statute so the bracket amounts continue to be indexed, with the statutory year reset to 2026 for the revised brackets.
The bill also expands the Minnesota child credit by increasing the credit amount from $1,750 to $2,000 per qualifying child. Related inflation-adjustment provisions are updated so the larger credit amount will be indexed beginning with tax years after December 31, 2025, and the phaseout thresholds continue to be adjusted under existing law. The changes apply to taxable years after December 31, 2025.
Impact
HF4890 would amend Minnesota’s income tax statutes, specifically the rate schedule in section 290.06, subdivision 2c, the inflation adjustment rules in subdivision 2d, and the child credit provisions in section 290.0661, subdivisions 3 and 7. Its practical effect would be to lower tax liability for many taxpayers by widening the lower brackets, while increasing taxes on very high-income earners through the new top rate. It would also increase the refundable or nonrefundable child credit amount, depending on how the credit is structured under current law, thereby reducing tax burden for families with qualifying children.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the bill appears to be framed as a tax policy change that combines relief for families with a higher tax burden on top earners. The caption and structure suggest a policy rationale focused on child tax relief and progressive rate changes. Because there is no available hearing transcript or vote history, there is no documented public sentiment from committee debate in the provided materials.
Contention
The main point of contention is likely to be the new fifth income-tax tier and 10.15 percent top rate, which would affect high-income individuals and could be viewed as a tax increase. Supporters would likely emphasize the expanded child credit and the bracket adjustments as family tax relief and a way to make the tax code more progressive. No specific objections, amendments, or negotiated compromises are shown in the provided record, so any contention is inferred from the policy design rather than from recorded debate.