How Minnesota compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | MN | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 5,830,405 | 22nd highest of 50 | 7 of 12 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 531.5 | 20th highest of 50 | 5 of 12 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $87,117 | 14th highest of 50 | 1 of 12 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 4.5% | 39th lowest of 50 | 10 of 12 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 9.0% | tied 23rd highest of 50 | 2 of 12 |
| Property tax ratechecked Nov 2026; confirm with the Minnesota legislature | 1.02% | 31st lowest of 50 | 4 of 12 |
| Deposit return window (days)checked Nov 2026; confirm with the Minnesota legislature | 21 | tied 11th lowest of 50 | 2 of 12 |
| Eviction notice (days)checked Nov 2026; confirm with the Minnesota legislature | 14 | tied 6th highest of 50 | 1 of 12 |
| Final pay deadline (days)checked Nov 2026; confirm with the Minnesota legislature | 5 | 20th lowest of the 29 states that set one | 3 of 8 |
- State income tax: yes41 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set Minnesota apart
- Paid sick leave required: yes20 of 50 states answer the same way
- Paid family leave: yes12 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: yes43 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the Minnesota legislature.
What's changing in Minnesota
Enacted changes with a fixed effective date. Contracts, payroll and leases signed now may run past these dates.
Coming up
- January 1, 2027
Took effect in the last 12 months
- January 1, 2026Minimum wage rose to $11.41/hrSource ↗
- January 1, 2026Paid Leave program begins (contributions and benefits)
Checked against official sources on 2026-11-05.
How long you have in Minnesota
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 21 days
- Eviction notice before filing
- 14 days
- Final paycheck within
- 5 days
- LLC formation processed in
- 5-7 business days
- Overtime starts after
- 48 hrs/week
AI Legal Insights — Minnesota
AI-generated · Updated July 2026
Minnesota's legal system is anchored by the Minnesota Supreme Court and a unified Court of Appeals, with strong consumer protections under the Minnesota Consumer Fraud Act and the Minnesota Data Practices Act governing public records. The state enforces robust worker protections, including the Earned Sick and Safe Time law and a forthcoming Paid Family and Medical Leave program, and its courts apply a broad implied covenant of good faith and fair dealing in contracts.
Minnesota's economy thrives in healthcare, medical devices, agriculture, advanced manufacturing, and a growing tech sector centered in the Twin Cities. The state offers a skilled workforce and strong research institutions, but businesses face a top-tier corporate income tax rate of 9.8%, a progressive personal income tax up to 9.85%, and above-average sales and property taxes that can affect operating costs.
Approximately 8.8% of Minnesota residents are foreign-born, with significant communities from Somalia, Mexico, India, and Southeast Asia. The USCIS field office in St. Paul serves the region, and both Minneapolis and St. Paul have sanctuary policies limiting local cooperation with federal immigration enforcement. The state's Office of New Americans and extensive refugee resettlement network provide integration services and legal assistance.
- ›Minnesota's Statute of Frauds requires written agreements for real estate transfers, contracts not performable within one year, and certain guarantor promises; oral agreements in these categories are unenforceable.
- ›Non-compete clauses must be reasonable in duration, geographic scope, and protect a legitimate business interest, and Minnesota courts increasingly invalidate non-competes for low-wage employees lacking adequate consideration.
- ›Include a clear choice-of-law and venue provision designating Minnesota law and a Minnesota court, as the state's implied covenant of good faith and fair dealing can impose duties beyond the express terms of the contract.
AI-generated insights · Verify with a licensed attorney before relying on this information.
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Employment Laws
Minnesota labor regulations
Minnesota is an at-will employment state with strong worker protections. Since January 1, 2026 there is one state minimum wage for all employers — $11.41/hr — rising to $11.87/hr on January 1, 2027. Minnesota's own overtime threshold is 48 hours per week, but most employers are also covered by the federal 40-hour rule. All employers must provide Earned Sick and Safe Time, Minnesota's Paid Leave program began paying benefits on January 1, 2026, and non-compete agreements signed since July 1, 2023 are void.
| Law | MN Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $11.41/hr for all employers since January 1, 2026; $11.87/hr from January 1, 2027. Minneapolis and Saint Paul set higher local minimums | $7.25/hr |
| Tipped Employees | No tip credit — tipped workers must receive the full minimum wage before tips | $2.13/hr cash wage allowed |
| Overtime | After 48 hrs/week under state law; employers covered by the FLSA must pay overtime after 40 hrs/week | FLSA: after 40 hrs/week |
| Paid Sick Leave (ESST) | 1 hr per 30 hrs worked, accruing up to 48 hrs/year; covers all employers regardless of size since January 1, 2024 | None (federal) |
| Paid Family Leave | Minnesota Paid Leave: benefits and premiums began January 1, 2026; up to 12 weeks of medical or family leave, 20 weeks combined per benefit year, funded by employer and employee premiums | FMLA: 12 weeks unpaid |
| Workers Comp | Mandatory for employers with one or more employees | Federal employees: yes |
| At-Will Employment | Yes; exceptions include whistleblower protections and a ban on retaliation for workers' compensation claims | Default nationwide |
| Final Paycheck | Within 24 hours of the employee's demand if fired; by the next regular payday if the employee quits | Next regular payday |
| Meal & Rest Breaks | Since January 1, 2026: a 30-minute meal break for shifts of 6+ hours and a paid 15-minute rest break for every 4 consecutive hours | Short breaks (20 min or less) must be paid; no meal break required |
| Non-Compete Agreements | Non-competes with employees and independent contractors signed on or after July 1, 2023 are void | FTC rule (enjoined); generally enforceable under common law |
- Non-compete agreements signed on or after July 1, 2023 are void and unenforceable in Minnesota. Non-disclosure agreements and reasonable non-solicitation agreements remain allowed.
- Earned Sick and Safe Time covers all employers regardless of size; leave can be used for the employee's or a family member's illness, for safety reasons related to domestic abuse, sexual assault, or stalking, and for certain closures.
- Minnesota Paid Leave started on January 1, 2026: eligible workers can take up to 12 weeks of paid medical leave or 12 weeks of paid family leave, capped at 20 weeks combined in a benefit year. Premiums are shared by employers and employees.
- Minneapolis and Saint Paul have their own minimum wage ordinances above the state rate, adjusted each year.
- The Minnesota Human Rights Act covers race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, disability, sexual orientation, gender identity, and age.
- Minnesota's 48-hour overtime threshold matters only for employers not covered by the federal FLSA; others must pay overtime after 40 hours.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
Minnesota rental regulations
Minnesota landlord-tenant law gives tenants significant protections. There is no statewide cap on security deposits, but deposits earn interest and must be returned within 21 days with an itemized statement. There is no statewide rent control; state law allows local rent control only with voter approval, and Saint Paul has a local rent stabilization ordinance. Eviction for non-payment requires a 14-day written notice before filing.
| Topic | MN Rule |
|---|---|
| Security Deposit | No statutory limit on the amount; landlords must pay simple interest on deposits |
| Deposit Return | Within 21 days after the tenancy ends and the tenant provides a forwarding address, with an itemized statement of deductions; bad-faith retention can lead to penalties |
| Rent Control | No statewide rent control; local rent control requires voter approval. Saint Paul has a rent stabilization ordinance with exemptions |
| Eviction Notice (Non-Payment) | 14-day written notice of unpaid rent before filing an eviction action |
| Late Fees | Late fees cannot exceed 8% of the overdue rent payment, and must be in the written lease |
| Habitability | Landlords must keep the unit fit for its intended use and in reasonable repair, including heat; tenants may pursue rent escrow through the court for unresolved violations |
| Landlord Entry | Landlords may enter only for a reasonable business purpose and must make a good-faith effort to give reasonable advance notice, except in emergencies |
| No Self-Help Eviction | Landlords may not change locks, remove belongings, or shut off utilities to force a tenant out; eviction goes through court |
| Retaliation Protection | Landlords may not retaliate against tenants for reporting code violations or exercising legal rights; adverse action within 90 days of a complaint is presumed retaliatory |
Both landlords and tenants have enforceable rights under Minnesota law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
Minnesota LLC formation guide
Minnesota is home to many large corporate headquarters, including Target, UnitedHealth Group, Best Buy, and 3M. Its 9.8% corporate tax rate is among the highest in the nation, while the state offers a highly educated workforce and business incentive programs. LLC formation costs $155, and the annual renewal is free online. Employers should budget for Minnesota Paid Leave premiums (since January 1, 2026) and the minimum wage increase to $11.87/hr on January 1, 2027.
Step-by-step LLC formation
- 1Choose a business name — must include "LLC", "L.L.C.", or "Limited Liability Company"; check name availability with the Minnesota Secretary of State
- 2Designate a registered agent with a physical Minnesota street address
- 3File Articles of Organization with the Minnesota Secretary of State online and pay the $155 filing fee
- 4Get an EIN (Employer Identification Number) from the IRS — free at irs.gov
- 5Register with the Minnesota Department of Revenue for applicable taxes — sales and use tax, employer withholding, and MinnesotaCare tax if applicable
- 6If you have employees, register for unemployment insurance and Minnesota Paid Leave premiums
- 7File the Annual Renewal with the Secretary of State by December 31 each year — free online
- 8Open a business bank account using your EIN and filed Articles of Organization
- 9Check local licensing and zoning requirements — Minneapolis, Saint Paul, and many other cities require local licenses for certain businesses
- 10Explore DEED (Department of Employment and Economic Development) programs for grants, loans, and job training resources
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for Minnesota taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
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Federal Offices
United States government offices in Minnesota
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Immigration appointments via my.uscis.gov or call (800) 375-5283.
Free Legal Aid
Minnesota legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying Minnesota residents.
Free civil legal services for low-income residents in the Twin Cities metro and central Minnesota
Pro bono civil legal services for low-income Minnesotans through a network of volunteer attorneys
Legal services for survivors of domestic violence, sexual assault, and other forms of abuse
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