Tax Law Changes

The 2024 legislative session started February 12. 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.

Major Changes in 2023
There were a number of changes to Minnesota's tax code in 2023, including some that affect previous tax years. For a summary of major changes, see 2023 Tax Law Changes.

Corporate Net Operating Loss Limit

The Minnesota Tax Bill signed into law on April 8, 2024, retroactively changed the effective date for the 70% Net Operating Loss deduction limitation. Visit Net Operating Losses for Businesses for more information. 

Correction to Standard Deduction for 2023

Minnesota laws have been updated to adjust standard deduction amounts for Individual Income Tax for 2023. This corrects previous legislation that inadvertently used the 2019 standard deduction amounts instead of the inflation-adjusted 2023 amounts for income tax. 

Note: 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 that taxpayers will receive standard deductions this filing season 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.)