State estate tax
Minnesota estate tax in 2026
Checked against state sources 2026-10-21 · Gregory Garone, CEPA®
Short answer: Yes. Minnesota taxes estates above $3 million at graduated rates of 13% to 16%. Taxable gifts made within three years of death are added back.
Minnesota at a glance
| Tax type | Estate tax |
|---|---|
| Estate tax exemption, 2026 deaths | $3,000,000 |
| Top rate | 16% |
| Portability to a surviving spouse | No |
How the Minnesota estate tax works
- The $3 million exclusion is set in statute and has applied since 2020. The Department of Revenue had not published 2026 instructions when this page was checked, so confirm before filing.
- Qualified farm and small business property can receive a deduction of up to $2 million, for a combined $5 million.
- Taxable gifts made within three years of death are added back to the Minnesota estate.
Planning points
- The three-year gift add-back means late-life gifting does little for Minnesota tax.
- Owners of farms and closely held businesses should check whether the qualified property deduction applies, since it has holding and post-death use requirements.
Common questions
Does Minnesota have an estate tax in 2026?
Yes. Minnesota taxes estates above $3 million at graduated rates of 13% to 16%. Taxable gifts made within three years of death are added back.
Is the Minnesota exclusion indexed?
No. It is a fixed $3 million.
Do nonresidents pay Minnesota estate tax?
A nonresident can owe tax on Minnesota real estate and tangible personal property located in the state.
Sources and limitations
Other states
Planning around Minnesota tax?
Tell us what you own, where, and who it is meant for. Greg will reply personally.
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