Does Minnesota have lower taxes than California?

On wages alone, Minnesota is lower (7.85% vs 9.30%). Use the calculator above to compare your specific situation.

Which state has the lowest overall tax burden?

Among the 50 states, Alaska, Wyoming, South Dakota, Florida, Tennessee, Texas, Nevada, Washington, and New Hampshire consistently rank lowest because they have no broad personal income tax. Property and sales taxes can still be material — Texas, for example, has high property tax.

Does California tax retirement income differently than Minnesota?

Yes — retirement treatment varies. Some states fully exempt Social Security, pensions, or both. See each state's guide for current rules.

Does moving partway through the year split my taxes?

Yes. You will file part-year resident returns in both states. Most states tax income earned while a resident plus state-sourced income while a non-resident.

How accurate is this comparison?

It uses 2026 IRS federal brackets and each state's average effective rate. Local income taxes, special surtaxes, and personal credits can shift the result by several thousand dollars.

Are property and sales tax included in the calculator?

The calculator focuses on income and capital-gains tax. Use the property tax calculator and the sales-tax rows above for those components.

California vs Minnesota Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between California and Minnesota for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

Tax	California	Minnesota
State income tax (effective)	9.30%	7.85%
Long-term capital gains	9.30%	9.85%
Property tax (effective)	0.75%	1.11%
Combined sales tax	8.82%	8.05%
Retirement income	ss-exempt	fully-taxable
Income system	progressive	progressive

Tax savings calculator

Filing status

Annual income

Pre-tax retirement

Long-term capital gains

Estimated 2026 burden

California total tax

$24,568

Minnesota total tax

$23,234

California state tax

$9,198

Minnesota state tax

$7,864

Difference

−$1,334

Minnesota saves you money

As % of income

1.11%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

Moving from California to Minnesota could save about $1,334 per year on this profile — roughly 1.11% of gross income.

Property tax difference on a $400k home: $1,440/yr.
Sales tax difference on $50k of taxable spending: $385/yr.
Capital gains difference per $10k gain: $55.

Key differences

California: 8.84% corporate tax — highest tier income at 13.3%; mental-health 1% surtax over $1M.
Minnesota: Top 9.85% bracket; new NIIT-style investment surtax above $1M.
Income system: California is progressive, Minnesota is progressive.
Retirement: California — ss exempt; Minnesota — fully taxable.

Recommended Tax Filing Software

Once you know what you owe, file with software built for your situation. We compare the top U.S. options below.

TurboTax

Best overall guided experience

4.7·$0 – $129 federal

Step-by-step interview
Live expert add-on
W-2 + 1099 auto-import
Pricier than competitors

File with TurboTax

H&R Block

Best for in-person backup

4.5·$0 – $115 federal

Free in-person review
Strong refund accuracy guarantee
Easy import from prior software
State filing adds up

File with H&R Block

TaxAct

Best value for self-employed

4.3·$0 – $99 federal

Cheaper than TurboTax/H&R
Strong Schedule C tools
Price-lock guarantee
Fewer guidance tooltips

File with TaxAct

FreeTaxUSA

Best truly-free federal e-file

4.6·$0 federal / $14.99 state

Free federal filing for all forms
Cheap state filing
Supports complex situations
Plainer interface

File with FreeTaxUSA

We may earn a commission from links above at no cost to you. See our Affiliate Disclosure.

Comparison FAQs

It depends on income mix. Minnesota has an effective income rate of 7.85% vs California's 9.30%. Property tax (0.75% vs 1.11%) and sales tax can swing the answer.

Related resources

Get Tax Tips, Updates, and Financial Insights

One short email a month. No spam. Unsubscribe anytime.

By subscribing you agree to our Privacy Policy. We never sell your data.