Story by James Warden
Each year, Minnesota adjusts income tax brackets to keep taxpayers from paying higher taxes just because of inflation.
The rates, themselves, don’t increase. Instead, the dollar amounts that determine the brackets grow so that taxpayers don’t move into a higher tax bracket just because their salary kept pace with inflation.
For 2014, the Minnesota Department of Revenue is increasing the state’s four tax brackets by 1.696 percent (rounded to the nearest $10), the agency announced Friday. The inflationary increase is based on the U.S. Consumer Price Index for all urban consumers between August 2012 and August 2013.
How do you feel about this year’s changes? Were they significant enough to keep your taxes at the same level? Or do you have to make more just to keep up with rising prices?
Share your thoughts in the comments section below.