The taxable wage base each year is 60 percent of Minnesota's average annual wage. It will increase from $23,000 for 2005 to $24,000 for 2006. The 2006 rate notices will be mailed to all active Minnesota employers on, or before, December 15, 2005 but they are already available on the Unemployment Insurance website.

...back to 1 December 2005

Further information:
Overview - 2006 UI Tax Rates

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The Department of Revenue (DOR) has announced that Minnesota's individual income tax brackets for tax year 2006 will expand by about 3 percent. State law requires the department to adjust the brackets to compensate for increases in the annual inflation rate. Minnesota's tax rates are not changing however.

The inflation rate is measured by the change in the U.S. Urban Consumer Price Index for the average of 12 months ending August 1999 to the average of 12 months ending August 2005. The index measures annual inflationary changes in the cost of basic goods and services. The department adjusts the brackets by the inflation factor and rounds the result to the nearest $10.

The DOR has also announced that the interest rate the state charges for late tax payments will increase from the current 4 percent to 6 percent on January 1, 2006. The state must pay taxpayers the same rate on delayed tax refunds.

...back to 10 November 2005

Further information:
Minnesota 2006 income tax brackets expanded

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