Additional personal and dependent exemptions, tax years 2015 and 2016

H.F. 848, authors A15-0509 DE amendment

Additional state exemption equals 25 percent of total federal personal and dependent exemptions.
For tax year 2015, the federal exemption amount is $4,000; the state additional exemption would be $1,000

$4,000 for a married couple with two dependents

$2,000 for a head of household (single parent) with one dependent

$1,000 for a single filer

Additional state exemption subject to phaseout based on adjusted gross income (AGI) for higher income filers.
Filer type
Married joint
Head of household
Single

Phaseout starts when income exceeds Exemptions phased-out when income reaches
$276,050
$398,550
$230,050
$352,550
$184,000
$306,500

Tax benefit equals taxpayers marginal rate (5.35, 7.05, 7.85, or 9.85 percent) times exemption amount.
No benefit to taxpayers with no taxable income, or those for whom exemptions are fully phased-out.
Married couple, two dependents
(4 exemptions, $4,000 total)
Income
State tax reduction
(AGI)
$25,000
$0
$50,000
$214.00
$75,000
$282.00
$100,000
$282.00
$250,000
$314.00
$500,000
$0

Single parent, one dependent

(2 exemptions, $2,000 total)
Income
State tax reduction
(AGI)
$25,000
$107.00
$50,000
$141.00
$75,000
$141.00
$100,000
$141.00
$250,000
$165.50
$500,000
$0

Single filer, no dependents

(1 exemption, $1,000 total)
Income
State tax reduction
(AGI)
$25,000
$53.50
$50,000
$70.50
$75,000
$70.50
$100,000
$78.50
$250,000
$45.00
$500,000
$0

MN Department of Revenue estimates 2,045,000 returns with a tax decrease in 2015; average decrease of $130.

tax year 2015 (fiscal year 2016): $265.7 million income tax reduction
tax year 2016 (fiscal year 2017): $272.9 million income tax reduction

Distribution of tax reduction, tax year 2015 (House Research estimates)

Income (AGI)
Number of returns
Percent of returns
$ of decrease
Average
with decrease
with decrease
(millions)
decrease
Less than $50,000
855,000
58.3%
$68.5
$50,000 to $99,999
688,000
98.7%
$98.9
$100,000 to $249,999
456,000
98.5%
$90.3
$250,000 to $499,999
46,000
72.6%
$8.0
$500,000 and over
0
0%
$0
All returns
2,045,000
75.1%

House Research Department; April 19, 2015

source: Department of Revenue estimates; House Income Tax Simulation Model estimates

$80
$144
$198
$176
$0
$130