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MNMinnesota Tax Relief

Moderate Difficulty

The Minnesota Department of Revenue enforces graduated income tax rates of 5.35% – 9.85%. They have independent authority to levy, garnish wages, and place liens.

Get Help With Minnesota Tax Problems

Tell us what's going on and we'll map out your options with the Minnesota Department of Revenue.

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Step 1 — Your Information

Free, no-obligation consultation. Your information is confidential.

Tax AuthorityMinnesota Department of Revenue
Income Tax5.35% – 9.85% (graduated)
Sales Tax6.875% (+ local)
Collection StatuteNo limit (liens 10 years, extendable)

Tax Overview: Minnesota

Minnesota tax debts are handled by the Department of Revenue and can trigger liens, levies, and wage garnishments set at 25% of net pay. The state offers an OIC program and case-by-case installment agreements, but IAs will NOT lift wage garnishments. Garnishment reduction is possible by submitting a written request with pay documentation. Liens last 10 years but can be extended, and the state has no specific collection statute of limitations.

Key Tax Facts

  • OIC available via Form C58C
  • Installment agreements are entirely case-by-case — both with and without financials
  • IA will NOT lift wage garnishment
  • Wage garnishments set at 25% of net pay
  • Garnishment reduction: submit last pay stub plus written request specifying desired payment amount
  • Liens last 10 years but can be extended
  • No specific collection statute — debts persist
  • Rates range from 5.35% to 9.85% — among the highest state rates nationally

Common Tax Issues

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IAs will not lift garnishments — taxpayers must pursue garnishment reduction separately

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Case-by-case payment plan terms mean outcomes vary significantly by collector and circumstances

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The 9.85% top rate makes Minnesota one of the highest-tax states, increasing the stakes of resolution

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Lien extensions mean even the 10-year lien period isn't a reliable endpoint

Resolution Options in Minnesota

Payment Plans (Installment Agreements)

Case-by-case basis. IA will NOT lift garnishment.

Offer in Compromise (OIC)

Available: Yes

Does NOT stop collections while pending

Form: Form C58C

Wage Garnishment

Rate: 25% of net

Can lift with payment plan: No

Can reduce amount: Yes

Send last pay stub plus written request specifying desired payment amount.

Penalty Abatement

Available: Yes

Bank Levy

Can release: No

Recent Tax Changes

  • Rates unchanged (5.35%-9.85%)

Official Resources

State Tax Overview (Public Integrity)NCSL State Tax Actions Database

How Tax Advocate Group Helps Minnesota Taxpayers

Whether you're dealing with the IRS, the Minnesota Department of Revenue, or both — we provide comprehensive tax resolution services to Minnesota residents and businesses.

Tax Relief

Consultation, preparation, and settlement services

Tax Resolution

IRS representation, innocent spouse relief, and more

Tax Negotiation

Offers in compromise, payment plans, penalty abatement

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