Tax Law Changes

When state tax laws change, we share updates and guidance as soon as they are available. For the latest information:

• Subscribe to our Tax Law Changes email updates.
• Check this web page after new tax laws are enacted.
• Email your questions about specific law changes to TaxLawChanges@state.mn.us.

2024 Legislative Session

The 2024 resulted in several updates to Minnesota's tax code. Major changes are summarized below.

Child Tax Credit — Advance Payments in 2025 and Later

Starting in tax year 2025, families who qualify for a 2024 Minnesota Child Tax Credit can choose to receive an advance payment of their 2025 credit. You must file a 2024 Minnesota Individual Income Tax return to determine the amount of the credit and opt into the advance payment.

We are in the process of determining the specific amount and timing of the advance payments — likely an amount no more than 50% of your 2024 credit, sent in the second half of 2025. Qualifying filers will also be able to choose to receive advance payments in following years. (See Minnesota Laws 2024, Chapter 127).

We'll share more details about the advance payment as they are available, ahead of next filing season. For program details, go to Child Tax Credit.

Corporate Franchise Tax — Net Operating Loss Limit

A tax law update enacted April 8, 2024, retroactively changed the effective date for the 70% Net Operating Loss deduction limitation. Companies that filed their 2023 Corporate Franchise Tax Return before this law change may need to file an amended return to claim the additional NOL deduction. Visit Net Operating Losses for Businesses for more information. 

Individual Income Tax — Standard Deduction Corrected for 2023

Minnesota laws were updated to adjust standard deduction amounts for Individual Income Tax for 2023.  Taxpayers who have filed Individual Income Tax returns for tax year 2023 (Form M1) do not need to take any action as a result of this change. Our forms already used the correct amounts for 2023.

This update ensures taxpayers received standard deductions that correctly address the inflation that has occurred since 2019. It adjusts the standard deduction amount for 2023 to $27,650 for married joint or surviving spouse filers, $20,800 for head of household filers, and $13,825 for all other filers. (See Minnesota Laws, Chapter 76, HF 2757.)

Moist Snuff Tobacco Tax

Beginning July 1, 2024, the definition of "moist snuff" also includes any similar tobacco-free products that contain nicotine. These products are subject to Minnesota Tobacco Tax in the same way as moist snuff products that contain tobacco. For more information, visit Tobacco Tax Requirements.

Note: We continue to review this year's tax law changes and will provide details as available.