Mortgage Interest Deduction in Minnesota
State income tax rate
9.85%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
Minnesota conforms to federal itemized deductions with a top rate of 9.85%. It also offers a mortgage interest credit for lower-income filers as an alternative to itemizing.
Combined Federal + Minnesota Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- Minnesota (9.85% rate): $1,773
- Total estimated savings: $5,733
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.