Updated 2026-07-08
Who Minnesota's threshold actually catches
Minnesota's $3 million line captures estates that owe the federal government nothing at all, which is the core planning problem for Twin Cities families: a paid-off home combined with ordinary retirement accounts can cross it without any unusual wealth. Lifetime gifting (see the gift tax calculator) and the step-up in basis (the step-up calculator) remain the standard levers once an estate approaches this line.
How the Minnesota math works
Minnesota's estate tax exemption is set at $3,000,000, with rates climbing to 16% above that line, a fifth of the federal exemption. Only the amount above $3 million is taxed, on a graduated schedule. Deductions come off first: the unlimited marital deduction, charitable bequests, and documented debts and expenses all reduce the taxable estate before the exemption is applied. See how the two totals compare in the calculator.
| Figure | Amount |
|---|---|
| Exemption | $3,000,000 |
| Top rate | 16% |
| Source | Minnesota estate tax statute (flat threshold, not annually indexed) |
Confirm the current figure with the Minnesota Department of Revenue before relying on it for a filing.