Minnesota House Introduces 1% Wealth Tax on Assets Above $10 Million
Updated
Updated · alphanews.org · May 17
Minnesota House Introduces 1% Wealth Tax on Assets Above $10 Million
1 articles · Updated · alphanews.org · May 17
HF 4616 would levy an annual 1% tax starting in 2026 on taxable wealth above $10 million for Minnesota individuals and trusts, and has been referred to the House Taxes Committee.
The bill would cover worldwide intangible assets held by qualifying Minnesota residents—such as stocks, bonds and business interests—plus real estate and tangible property located in the state, with values generally set under federal estate-tax rules.
Minnesota’s Department of Revenue estimates the tax would raise about $290 million a year from roughly 5,600 people, far short of a projected $2.7 billion structural budget gap in fiscal 2026-27.
If enacted, it would be the first broad state-level wealth tax in the US; the proposal arrives as Minnesota already ranks among higher-tax states and faces concerns over valuation disputes, relocation risk and weaker investment.
As European nations abandoned wealth taxes due to capital flight, how will Minnesota succeed where they failed?
What are the unforeseen legal and administrative costs of annually valuing every complex asset over $10 million?
Minnesota’s $10 Million Wealth Tax Proposal (HF 4616): Legislative Battle, Economic Stakes, and National Precedent as of May 2026
Overview
Minnesota's proposed wealth tax bill, HF 4616, seeks to introduce an annual tax on personal assets over $10 million, setting a lower threshold than typically seen in national debates. If passed, it would be the first broad state-level wealth tax in the U.S., making Minnesota a pioneer in this area. As of May 17, 2026, the bill is under active consideration but faces strong opposition from business leaders and a challenging legislative environment. The debate highlights both the potential for setting a national precedent and the significant hurdles the proposal must overcome.