Tax Pro Newsletter – Aug 2026

Tax law changes from the 2026 legislative session were signed into law on May 27. As we continue to review those changes, we’ve summarized a few major ones for individuals and businesses in this issue.

Additionally, we’re upgrading our e-Services system, which will be available later this year.

Be sure to follow our Tax Law Changes page and subscribe to our Tax Law Changes email list to get the latest information.

Summary of Tax Law Changes

A major change includes aligning Minnesota with most federal tax provisions as of May 1, 2026. Other major changes are summarized here for individuals and businesses, however, it’s not a complete list of changes. 

For more details and the latest updates, visit Tax Law Changes.

Individuals
Tax law changes for individuals include:

• Increasing the state Property Tax Refund for homeowners for tax year 2025
• Limiting the deduction for charitable contributions
• Decoupling the Minnesota Child and Dependent Care Credit from the federal credit
• A new subtraction for Nursing Facility Workforce Wage Supplement payments

It also includes new additions for:

• 529 plan 
• Disallowed educational assistance
• Qualified transportation fringe benefits
• Military services in the Sinai Peninsula, Kenya, Mali, Burkina Faso, and Chad

Businesses
Tax law changes for businesses include:

• Extending the Pass-Through Entity Tax through tax year 2027
• Accelerated gains for Composite Income Tax
• Changes to the look-thru rule for related controlled foreign corporations
• Conformity to domestic research and expenditure expensing but decoupled for C corporations
• Qualified Business Asset Investment (QBAI) deduction against net CFC tested income
• Various updates to the Sustainable Aviation Fuel Tax Credit
• Removing the allocation limitation for the 2026 tax credit for agricultural assets owners

It also includes new additions for:

• Interest received on loans secured by rural or agricultural real property
• Opportunity zone capital gain income

e-Services System Upgrade Coming This Fall

We’re upgrading e-Services, our online filing and payment system, and expect the upgraded system to be available in early fall 2026.

The upgrade will maintain the overall look, feel, and functionality of e-Services. Aside from a few visual changes, the upgrade will not change the way you work day-to-day.

The upgrade features:

• A streamlined and enhanced payment process
• More self-service options to manage your information
• A more consistent experience across all tax types
• Enhanced security to protect your data

This upgrade will allow us to continue enhancing and expanding e-Services into the future. It’ll also give our customer service agents new tools to provide you with even better customer support.

Subscribe to our tax professional email updates to get for more information later this year.

New Course About the Collection Division

Discover how our Collection Division truly works and how it can support you. This course offers an inside look at Collection’s purpose, structure, and the vital role collection officers play in helping you and your clients. 

You’ll gain clarity on available collection actions and relief options, learn the essential steps to take when closing a business, and leave with the confidence of knowing exactly how—and when—to connect with the Collection Division. Perfect for anyone seeking to navigate the process with greater ease and insight.

This one-hour course is offered quarterly as a webinar. The next courses are scheduled for September and December. We’ll share registration information on our Tax Pro Education page as it gets closer.

Free Seminar on State Employment Taxes 

Attend a free, full-day seminar on August 13 in St. Cloud to learn more about state employment taxes and other employer responsibilities. 

The seminar will have experts from:

• Minnesota Department of Revenue
• Minnesota Unemployment Insurance Program
• Minnesota Workers' Compensation Insurers Association

You’ll learn more about:

• Worker status
• Income tax and withholding requirements
• Unemployment insurance
• Workers’ compensation requirements

Business owners, tax and payroll professionals, bookkeepers, and accountants are encouraged to attend. You may receive continuing education credit for attending.

For more information, including registration, visit Educational Seminars on the Minnesota Unemployment Insurance website.

New Local Sales, Use, and Excise Taxes

To stay up-to-date on new local sales, use, and excise taxes, visit Local Sales Tax Information.