How Much Money Will The State Of Minnesota Send You?

ST. PAUL, MN — As the 2023 legislative session winds down, Minnesotans may be wondering how much of the state's record $17.5 billion surplus they can expect back in their pockets. The answer, of course, depends on your income, number of dependents, and more.

Here's what to know when it comes to state rebates and tax breaks:

Rebate checks

Democrats in the majority agreed to send one-time "Walz checks" of $260 to individuals who make up to $75,000 or $520 for married couples earning up to $150,000.

Additionally, families that qualify will also get $260 per child, but only up to three children. The checks are a far cry from what Gov. Tim Walz proposed in late January.

Child tax credit

An annual child tax credit will also send money to families earning less than $90,000.

Couples earning up to $35,000 would get $1,750 per dependent under the credit. The credit amount decreases for higher earners and is completely phased out at $90,000 and above.

Social Security tax cut

About 80 percent of Minnesotans currently on Social Security will be exempt from taxes as a result of a measure passed this session. That's up from about 50 percent previously.

Couples making less than $100,000 will be completely spared of Social Security taxes. People making between $100,000 and $140,000 will receive a partial break.

Property taxes

Homeowners and renters can also expect a one-time jump — about 20 percent — in the amount of money they'll see in their property tax refunds next year.

New taxes and fees

While lawmakers agreed on several breaks for residents, some fees and taxes are going up. Among the most noticeable are those related to transportation.

The Minnesota Legislature on Sunday passed three major tax measures as part of the omnibus transportation bill. The bill — which was sent to the governor's desk — implements a delivery fee, ties the state gas tax to inflation, and adds a metro-wide sales tax.

The measures are intended to pay for the maintenance of the state's transportation infrastructure. Walz is expected to sign the bill into law.

Delivery fee

Despite protests from businesses, Minnesota's Democratic majority at the Capitol passed a 50-cent fee on retail deliveries of more than $100.

There are certain exemptions from the fee, however, including:

• Baby products
• Drugs
• Medical devices
• Food (including restaurant deliveries)

Companies can either swallow the fee themselves or pass it on to the consumer.

However, if you order something from a retailer that generates less than $1 million in annual sales, there is no fee.

Gas tax

Minnesota's gas tax hasn't been raised since 2008. It currently sits at 28.5 cents. But under the transportation bill, the gas tax would be tied to inflation.

Once implemented, the gas tax is expected to jump up 5 cents by 2027, the Star Tribune reported.

Metro sales tax

Within the transportation bill is a requirement that the Metropolitan Council impose a 0.75 percent sales tax on retail purchases in the seven counties of the Twin Cities metro area. The money would go to maintain the metro's transit systems.

The seven-county metro includes:

• Hennepin County
• Ramsey County
• Dakota County
• Washington County
• Anoka County
• Scott County
• Carver County

Reporting from the Associated Press was used in this story.