Exempt Minors From State Income Taxation

 

The purpose of this bill is to exempt individuals under the age of 18 from paying Minnesota state income taxes on wages

earned through lawful employment.

 

Minors often work part-time jobs to gain work experience, support their families, or save for future education. Because

these individuals typically earn low wages and have limited financial resources, the burden of state income taxation can

prevent them from saving effectively and discourages early workforce participation. Exempting minors from income tax

would support youth financial stability, encourage responsible saving habits, and reduce administrative barriers for

both young employees and employers.

 

Minor: Any individual under the age of 18 at the time income is earned.

State Income Tax: Any income tax collected by the State of Minnesota on wages or salaries.

Wages: Compensation received from lawful employment, including hourly pay, salary, or tips.

 

This bill will require no additional funding. The small reduction in state revenue will be offset by administrative

savings resulting from decreased processing of youth tax filings and increased economic participation from working

minors.

 

This bill does not need extra funding. Although the state will collect slightly less money from taxes, it will save time

and resources because it won’t have to process tax forms from minors. More working minors may also help make up for the

small loss in tax revenue.

 

January 1, 2027.