Frequently Asked Questions

How is my tax liability estimated from my income level?

The Department of Revenue’s Tax Incidence study analyzes tax returns and other data to measure the average burden of all taxes for Minnesota households, dividing the population into 10 groups with similar income levels. The tax liability shown is the average tax burden for the 10% of Minnesota households that have a similar income to what was entered.

How is my sales tax paid estimated from my income level?

The Department of Revenue’s Tax Incidence study looks at national household consumption data to estimate the average amount of sales tax paid by income range.

What is meant by 'taxes filed as a household'?

Taxpayers who file jointly or married filing separately, plus any dependents, are considered one household for the taxpayer receipt. Unmarried taxpayers who live together but file taxes separately are considered separate households.

How were the amounts in the receipt categories calculated?

The Department of Revenue’s Tax Incidence study analyzes tax returns and other data to measure the average burden of all taxes for Minnesota households, dividing the population into 10 groups with similar income levels. The tax liability shown is the average tax burden for the 10% of Minnesota households that have a similar income to what was entered. See appendix B of the Tax Incidence Study for more information. The estimated spending by receipt category is based on state spending in the most recently closed fiscal year. Find detailed information on the state budget here.

Why are motor fuel taxes accounted for separately on the receipt?

Article 14 of the Minnesota constitution requires that revenue generated from taxation on motor fuel be deposited into a separate state fund for transportation uses.

I entered my miles driven last year, how were my motor fuel taxes paid estimated from that information?

If you entered your miles driven, the calculation then divides the number of miles driven by the miles per gallon (MPG) you entered (or assumes 21 MPG if left blank). The result of this calculation is then multiplied by the current tax rate, 31.8 cents per gallon, to estimate fuel taxes paid last year.

I didn’t input my vehicle’s miles per gallon. What miles per gallon (MPG) is assumed?

If there is no entry, the receipt assumes 21 MPG.

What about all the other taxes the state collects?

The taxpayer receipt is designed to comply with Minnesota Statutes 16A.067 which requires estimates for taxes paid for income, sales, tobacco, alcohol and motor fuel taxes. Information on the average burden from other state and local taxes can be found in the Tax Incidence Study.

Last year my tax liability was negative, why can’t I enter negative income taxes paid?

The taxpayer receipt is intended to represent an estimate how tax dollars are spent by state government, a negative income tax liability would not allow an estimate of state spending.

My tax liability last year was different than what’s on this receipt, which one is correct?

The receipt estimates your tax liability based on the income you entered and the tax liability of many taxpayers with similar incomes. Tax liability can vary a lot for people with similar incomes based on their qualification for various deductions, subtractions and credits. If you know your actual income tax liability, enter that in the form.

What happens to the information I enter on the form?

Individual entries are not tracked or saved. The website does track the number of users but does not retain any user or entry information.

Which fiscal year is the spending data in the calculator associated with?

The estimated spending by receipt category is based on state spending in the most recently closed fiscal year. Find detailed information on the state budget here.

Doesn’t the state spend federal money too? How much of my federal tax dollars are going to programs in
MN
?

The state does spend federal funds, however those expenditures flow through the state federal fund. For more information see the consolidated fund statement federal fund statement.

How much alcohol and tobacco do you estimate that I consume?

The estimates are based on federal household consumption data and Minnesota tax receipts. If you indicated on the form that you do not consume alcohol or tobacco then no tax is shown for you on the receipt. The actual amounts will vary from taxpayer to taxpayer.

Does sales tax include the additional amounts collected from local sales taxes?

No, local sales taxes are not included. Information on the average burden from other state and local taxes can be found in the Tax Incidence Study.

Do these amounts include my local property taxes?

No, local property taxes are not included. Information on the average burden from other state and local taxes can be found in the Tax Incidence Study.