Minnesota lawmakers float 1% wealth tax above $10M
DFL legislators at the Capitol are pushing a new "wealth tax" that would slap a 1% annual levy on every dollar of in‑state taxable wealth above $10 million, hitting individuals and trusts that keep their wealth based in Minnesota, including the Twin Cities. The bill, heard in the House Taxes Committee and laid over for possible inclusion in the broader tax bill, would take effect for tax years starting after Dec. 31, 2025, and is framed by sponsors like Reps. Esther Agbaje and Liz Lee as a way to make the state’s richest residents "pay their fair share" in a system where asset growth far outpaces wages. Republicans on the committee blasted the proposal as repeat‑performance tax‑and‑spend politics, with Rep. Mike Wiener pointing to roughly $10 billion in recent tax hikes and Rep. Patti Anderson questioning whether taxing unrealized wealth is even constitutional. Opponents also warned that asset‑rich but cash‑poor owners — including farmers and some business owners whose land and equipment push them over $10 million on paper — could be squeezed despite modest annual income. For the metro, where a large share of the state’s high‑net‑worth households live, this is the opening round of a fight over whether Minnesota tries to tax fortunes as well as paychecks — and whether the very wealthy start voting with their feet.
📌 Key Facts
- The proposal would impose a 1% annual tax on in‑state taxable wealth above $10 million for individuals and trusts.
- The bill was heard in the Minnesota House Taxes Committee and laid over for possible inclusion in the omnibus tax bill.
- If enacted, the tax would take effect for taxable years beginning after December 31, 2025.
- Supporters, including Reps. Esther Agbaje and Liz Lee, argue it’s time for the wealthiest Minnesotans to contribute more to fund public services.
- Opponents, including Reps. Mike Wiener and Patti Anderson, question the tax’s constitutionality and warn it could squeeze asset‑rich, income‑poor Minnesotans like farmers.
📊 Relevant Data
Approximately 5,600 taxpayers in Minnesota would be subject to the proposed wealth tax on net worth exceeding $10 million each year.
WEALTH TAX $10 Million Exclusion April 6, 2026 — Minnesota Department of Revenue
The proposed 1% wealth tax in Minnesota is estimated to generate $288.3 million in general fund revenue in fiscal year 2027, $290.2 million in 2028, and $292.1 million in 2029.
WEALTH TAX $10 Million Exclusion April 6, 2026 — Minnesota Department of Revenue
The richest 1% of Minnesota families own nearly one third of the state's total wealth, with wealth inequality increasing over the past six decades as the bottom 50% saw their share drop from 10% in 1960 to about 5% in 2020.
Richest 1% of Minnesota families own nearly one third of the wealth — Minnesota Reformer
Of 14 European countries that implemented personal wealth taxes, all but three repealed them due to capital flight, disappointing revenue, and high administrative costs.
California can learn from countries that tried wealth taxes — CalMatters
In Minnesota, the median household income for Black/African American households is $49,738, compared to $87,692 for White alone households and $84,313 overall; Black/African Americans make up 6.7% of the population.
Minnesota Economic Disparities by Race and Origin — Minnesota Department of Employment and Economic Development
Poverty rates in Minnesota are 24.0% for Black/African Americans and 31.2% for American Indian/Alaska Natives, compared to 7.2% for White alone and 9.3% overall; Black/African Americans are 6.7% of the population, American Indian/Alaska Natives 0.9%.
Minnesota Economic Disparities by Race and Origin — Minnesota Department of Employment and Economic Development
Home ownership rates in Minnesota are 77.5% for White households and 30.5% for Black households, contributing to wealth gaps.
Wealth gap increases in Minnesota despite strong economy — MinnPost
Unemployment rates in Minnesota are 8.7% for Black/African Americans and 11.9% for American Indian/Alaska Natives, compared to 3.4% for White alone and 4.0% overall.
Minnesota Economic Disparities by Race and Origin — Minnesota Department of Employment and Economic Development
📰 Source Timeline (1)
Follow how coverage of this story developed over time