"Comparing State Tax Systems: Equity and Progressivity Across the Nation"

A new report by the Institute on Taxation and Economic Policy ranks Minnesota as having the most progressive tax system among U.S. states, with the lowest tax burden on lower and middle-class households relative to the wealthy. Minnesota's steeply progressive income tax and recent measures such as higher taxes on corporations and wealthy residents, along with larger tax credits for low-income families, have contributed to this ranking. However, the state increased sales taxes, which are regressive, to fund housing and transit. While Minnesota's tax system is the least regressive among states, it still falls short compared to other states with extremely regressive tax systems.