Minneapolis Taxes (St. Louis Park, St. Peter, Wyoming: sales, bankruptcy, income)

[sarejahan]

Hello all,

I will be relocating to Minneapolis and was wondering what the income tax structure is? Is there a city tax on top of the federal and state tax?

Does it matter if I decide to reside in Minneapolis downtown vs Uptown vs St. Louis Park or nearby suburbs? I would like to take into consideration taxes before finalizing which area to live in.

Thank you!

[Cruz Azul Guy]

There are no local income taxes anywhere in Minnesota as far as I know, all we have is state and federal income tax.

[west336]

Only sales taxes are different city to city, and even downtown I think. But no, there is no city or county income tax that I have ever heard of (like they have in Ohio, for instance).

[sarejahan]

Thank you! I am currently in Ohio and I have to pay Income tax in the city I work and also in the city I live in. Am relocating to Minneapolis from Cleveland, OH

[golfgal]

Sales, property, state and federal are the only taxes you pay here. We don't have any city/municipal taxes, no personal property tax, etc. We do, however, have one of the highest taxed states in the US--but it's worth it.

[GBCommenter]

Originally Posted by golfgal

Sales, property, state and federal are the only taxes you pay here. We don't have any city/municipal taxes, no personal property tax, etc. We do, however, have one of the highest taxed states in the US--but it's worth it.

I might respectfully disagree with my online discussion acquaintance on if it is worth it to be one of the highest taxed states. I hesitate to agree there is necessarily a causation to the correlation of high tax state and high quality lifestyle. If there were, then all of CA and Detroit should be sitting with angels and St. Peter on the park benches. I would say there are other qualities that cause a high quality lifestyle, frankly, in spite of high taxes.

That said and back to the question - as others mentioned you do not have an income tax specifically in the city. You'll just need to look at the overall tax situation to make a fair assessment of whether the pay you'll receive and cost of living overall makes MN the right move for you.

[golfgal]

Originally Posted by GBCommenter

I might respectfully disagree with my online discussion acquaintance on if it is worth it to be one of the highest taxed states. I hesitate to agree there is necessarily a causation to the correlation of high tax state and high quality lifestyle. If there were, then all of CA and Detroit should be sitting with angels and St. Peter on the park benches. I would say there are other qualities that cause a high quality lifestyle, frankly, in spite of high taxes.

That said and back to the question - as others mentioned you do not have an income tax specifically in the city. You'll just need to look at the overall tax situation to make a fair assessment of whether the pay you'll receive and cost of living overall makes MN the right move for you.

Go live in Mississippi, Alabama, South Dakota, etc. and then come back and tell me that paying higher taxes aren't worth it. On average CA residents pay 10.5% into taxes, MN 10.2% and MI 9.4%, ranking 6th, 12th and 27th...Tax rates: Where does your state rank? - Apr. 14, 2009

[GBCommenter]

I would again posit correlation is not necessarily causation - either for high taxes/high quality lifestyle or low taxes/low quality lifestyle. There are other factors at play, not the least of which (in the case of Minnesota anyway) is there an ingrained culture of hard work that pays off in a higher quality lifestyle?

I am not interested in getting into a tit-for-tat and seeing who can more diligently troll the internet in a weblink war, though if low taxes means low quality lifestyle Texas (#43 on your link) should not have people flocking to that state in droves (If I have to pull a link, I'd find the one in USA Today talking about Texas and it's the place to go if you want a job). New Hampshire, Nevada, and Wyoming (#'s 46, 49 & 48, respectively) should not have an average income in excess of CA, Vermont, or our own fine state of MN.

Additionally, how is it CA has the sixth highest taxes by percentage - and presumably a considerable amount of cash flowing into government to fund all sorts of neat programs - yet the state sits on near bankruptcy and insolvency? Of course, that same question can be asked of the national government.

We look at the situation in the wrong frame of mind when we assume government, and handing over our hard earned dollars, knows best how to run our finances and lives. Worse yet, we do not ask the question seriously of what we could accomplish if we looked to individual ingenuity/entrepreneurship instead of waiting on government.

[GBCommenter]

In fact, a thought that just occurred to me...if high taxes correlate to high quality of life why is our original poster relocating from OH (#7 on your link) to here, and why is he/she seemingly concerned about the tax rate? I realize there may be a myriad of answers but if high taxes correlate to high quality lifestyle it would seem there might be little reason to relocate.

(my apologies in advance to the OP for somewhat pulling you into a debate that you may not have asked for...)

[west336]

Originally Posted by sarejahan

Thank you! I am currently in Ohio and I have to pay Income tax in the city I work and also in the city I live in. Am relocating to Minneapolis from Cleveland, OH

Take me with you! JK, I'm enjoying Cleveland alright. Good luck with your endeavors in the Twin Cities!