If you file a Minnesota tax return, the 2026 legislative session brought a few updates worth knowing about. While lawmakers approved several major spending and funding bills, there were no significant changes to Minnesota's individual income tax rates or standard filing rules. The biggest item for many taxpayers is new property tax relief.
What property tax relief was approved?
Lawmakers approved $125 million in property tax relief. While the exact impact will vary by property and local jurisdiction, the funding is intended to help reduce property tax pressures for Minnesota property owners. Homeowners should watch for guidance from the Minnesota Department of Revenue and local governments regarding any benefits that may affect future property tax statements or refund claims.
Will housing assistance programs affect my taxes?
The state approved a $165 million housing package that includes funding for housing infrastructure, rental assistance, homelessness prevention programs, supportive housing, and homeownership counseling.
These programs do not create new Minnesota tax credits for most taxpayers. However, if you receive housing-related assistance, keep records of any payments or benefits and review any tax documents you receive to determine whether reporting is required.
Are there any new tax credits or deductions?
The 2026 session recap does not identify any major new individual tax credits or deductions for Minnesota taxpayers. Most enacted measures involve state funding and appropriations rather than changes to tax return calculations.
Other changes that may affect Minnesota residents
The Legislature also approved:
- A $1.24 billion bonding bill for roads, bridges, water infrastructure, housing rehabilitation, flood mitigation, and other public projects.
- Healthcare funding to support hospitals and healthcare systems across the state.
- The creation of a statewide Office of Inspector General to strengthen oversight of taxpayer-funded programs.
- Additional housing and veteran support initiatives.
While these measures may affect state services and local communities, they generally do not require special action when filing your Minnesota income tax return.