Minnesota Tax Burden and Relief Options

Residents in Minnesota seeking to reduce their tax obligations have a few avenues to explore, including tax planning and property tax refunds.

A recent self-report placed Minnesota among the top 10 states for tax burden, particularly affecting personal income and property taxes. A report from 5 EYEWITNESS NEWS noted an expected $430,000 increase in taxes in Minnesota by 2026 compared to 2024.

“As I get older, I’m starting to notice that things are changing, and with those changes come rising taxes, which is, well, quite a lot,” shared Tyerence Kelly.

Kelly, who works as a hairstylist, noted that he feels the financial strain reflected in his paycheck and family budget.

“It often feels like I’m working for someone else rather than for my own living. It’s almost like I’m just working to pay taxes, not to support my family or build a future,” he added.

What Can People Do?

According to accountant Theresa Gebhard of Gebhard & Giguere LTD, proactive planning is essential, rather than just submitting a tax return once a year. She emphasized the importance of examining what taxpayers are paying and potential deductions they might be eligible for.

“That’s really where you can find some benefit—if you take the time to evaluate your tax situation. Filing a return is necessary, but are you really considering what you’re actually paying? Looking into available deductions is where my clients see the real advantages of working with a professional,” Gebhard stated.

She identified three strategies that could help individuals save on their taxes, which include utilizing a Roth 401(k), establishing a health savings account, and assessing whether relocating to a different tax area might align better with a family’s budget.

“Do whatever you can, over time this will really add up,” Gebhard encouraged.

Additionally, Gebhard advised Minnesota homeowners to verify if they qualify for a property tax refund through the state’s homestead refund program.

Kelly believes that voicing concerns during the budgeting process could lead to change. “If we clearly express our frustrations to the government, I think we can see improvements,” he remarked.

For those interested in tax assistance with Theresa Gebhard, her website is available for visits.

And if anyone is looking for a haircut by Kelly, they can reach him at 218-600-6535.