Compare taxes and see how much you save moving from Florida to Minnesota
Minnesota has one of the highest state income tax burdens in the United States, and it is one of the rare states that taxes Social Security income — a fact that shocks many Minnesota retirees. Minnesota's progressive rates run from 5.35% to 9.85%, with the top rate kicking in above $220,650 for single filers. Florida has no state income tax whatsoever. At $100,000 in taxable income, a Minnesota resident pays approximately $6,900 in state income tax; a Florida resident pays zero. At $200,000, Minnesota's tax approaches $17,000–$19,000/year. The Social Security issue: Minnesota taxes Social Security benefits for taxpayers with provisional income above $105,380 (married filing jointly) or $82,190 (single) in 2024. Up to 85% of Social Security benefits can become taxable in Minnesota at the marginal rate. For a married couple with $130,000 total income including Social Security, this means hundreds to thousands of dollars of additional state tax that Florida retirees never pay. Minnesota does offer a Social Security subtraction that phases out at higher income levels — but above approximately $110,000 in adjusted gross income for married filers, little to no subtraction is available. Minnesota's property taxes are moderate (~1.1%), lower than Florida's average but with higher homeowners insurance in Florida offsetting this. For high earners and retirees with Social Security income above the thresholds, the Minnesota-to-Florida move is one of the highest-impact state tax changes available.
No State Income Tax
Zero state income tax; no tax on wages, retirement income, Social Security, or investment income
Taxes Social Security for Higher Earners
Progressive 5.35–9.85%; one of only ~9 states that taxes Social Security above income thresholds; no general pension exclusion
At $100,000 income:
Florida saves approximately $6,900/year vs Minnesota at $100K income. Minnesota's top rate is 9.85%. Minnesota also taxes Social Security for earners above ~$105,380 (married) or ~$82,190 (single). For high-income retirees drawing Social Security plus pension or IRA income, Florida's combined saving can exceed $10,000–$15,000/year.
| Income | FL Tax | MN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | ~$2,323 | FL saves ~$2,323/yr | $23,230 |
| $75,000 | $0 | ~$4,073 | FL saves ~$4,073/yr | $40,730 |
| $100,000 | $0 | ~$6,473 | FL saves ~$6,473/yr | $64,730 |
| $150,000 | $0 | ~$11,248 | FL saves ~$11,248/yr | $112,480 |
| $250,000 | $0 | ~$21,623 | FL saves ~$21,623/yr | $216,230 |
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Minnesota's Social Security tax rules and high progressive rates make retirement planning complex. Whether you're moving permanently to Florida or optimising a part-year return, Taxhub matches you with a CPA specialising in high-income retirement moves. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a State Tax CPA →Yes, Minnesota is one of approximately 9 states that tax Social Security income. Minnesota taxes Social Security benefits for taxpayers with provisional income above $105,380 (married filing jointly) or $82,190 (single filers) in 2024. Above these thresholds, up to 85% of Social Security benefits are included in Minnesota taxable income. Minnesota does offer a Social Security benefit subtraction that allows some lower-income retirees to exclude their benefits — but the subtraction phases out completely at roughly $108,710 (married) or $88,060 (single). High-income Minnesota retirees pay state income tax on a large portion of their Social Security. Florida taxes no Social Security income at any income level.
Minnesota has four progressive brackets: 5.35% on income up to $30,070 (single) or $44,090 (married); 6.80% from $30,070 to $98,760 (single) or $44,090 to $174,610 (married); 7.85% from $98,760 to $183,340 (single) or $174,610 to $304,970 (married); 9.85% above $183,340 (single) or $304,970 (married). At $100,000 in taxable income (single), the effective rate is approximately 6.5–7%. At $200,000, the effective rate exceeds 8%. Minnesota's top rate of 9.85% is the fourth-highest in the country after California, Hawaii, and New Jersey.
For most Minnesota retirees with moderate-to-high income, yes. At $100,000 in retirement income: Minnesota income tax ~$6,500/year; Florida $0. Florida property insurance adds $3,000–$5,000/year over Minnesota. Net Florida advantage on income: ~$1,500–$3,500/year at $100K. At $150,000 in income, the picture improves significantly: MN tax ~$11,000 minus insurance increase ~$4,000 = net Florida advantage ~$7,000/year. For Social Security recipients above the MN threshold, Florida's advantage is even larger because MN taxes SS income. The break-even income level for homeowners is approximately $85,000–$100,000 — below that, the insurance difference may offset the income tax saving.
Minnesota abolished its estate tax in 2023. Before 2023, Minnesota had an estate tax with a $3 million exemption — far below the federal threshold — that applied to estates between $3M and $13.61M. This made Minnesota one of the most aggressive estate tax states in the country. The abolition removes a major financial reason high-net-worth Minnesotans were establishing Florida domicile for estate planning. For most current retirees, the estate tax comparison between Florida and Minnesota is now equal at the state level.
For remote workers, Florida is substantially better. At $120,000 in remote income: Minnesota state tax ~$9,500/year; Florida $0. The annual saving is $9,500. Florida's higher property insurance (~$3,000–$5,000 more/year for homeowners) reduces but doesn't eliminate this advantage. For renters working remotely, the Florida advantage is clear at almost any income level. Minnesota's 9.85% top rate particularly affects high-earning remote workers — an engineer or tech employee at $200,000 saves approximately $15,000–$17,000/year by moving to Florida.
The Twin Cities metro area (Minneapolis-Saint Paul) feeds heavily into Southwest Florida — Naples, Marco Island, Fort Myers, and Cape Coral. Sarasota and Bradenton have large Minnesota retiree communities. The migration pattern typically follows the snowbird route: winter in Florida, summer in Minnesota, then permanent Florida move. Rochester, Minnesota (Mayo Clinic) has a strong connection to Southwest Florida. Grand Rapids, Duluth, and Brainerd area retirees frequently choose Gulf Coast communities within driving distance of Tampa International Airport (for return trips).