SEO METADATA — EDITOR REFERENCE

Title Tag: Minnesota Estate Tax 2026: $3M Exemption, Rates 13–16%, No Portability - ProbatePedia

Meta Description: Minnesota imposes estate tax on estates over $3M. Rates: 13%–16% graduated. NO portability. Form M706 due 9 months from death. MN allows a farm deduction and qualified small business deduction. Annual gifting is powerful — MN has no gift tax.

Minnesota Estate Tax (2026): $3M Exemption, Rates & All Planning Strategies

Last Updated: March 2026 • Minn. Stat. Ch. 291 (MN Estate Tax)• MN Series — Article 6 of 8 · HIGH SEARCH VOLUME

| Minnesota Estate Tax — Complete Reference | | | --- | --- | | Governing statute | Minn. Stat. Ch. 291 (Minnesota Estate Tax Law) | | MN estate tax exemption | $3,000,000 per person (Minn. Stat. §291.016) — ⚠ editor verify exact current figure; MN has adjusted this amount | | Indexed for inflation? | ⚠ Editor verify whether current MN law indexes the $3M figure | | Portability | None — MN has no portability between spouses | | MN estate tax rates | 13%–16% graduated on amounts above $3M (Minn. Stat. §291.03) — ⚠ editor verify current rate brackets | | Form M706 | Minnesota Estate Tax Return | | M706 due date | 9 months from date of death (Minn. Stat. §291.03) | | Extension | 6-month extension to file available; does NOT extend payment — interest accrues | | MN gift tax | None — annual gifts reduce MN gross estate | | MN inheritance tax | None | | MN marital deduction | Yes — unlimited for transfers to surviving US citizen spouse | | MN charitable deduction | Yes — unlimited for qualifying charitable transfers |

MN Estate Tax Rate Table (2026 — Editor Must Verify Current Brackets)

| ContentApproximate MN Rate** | | --- | --- | | $0 – $500,000 | 13% | | $500,000 – $1,000,000 | ⚠ verify current MN bracket from Minn. Stat. §291.03 | | $1,000,000 – $2,000,000 | ⚠ verify | | $2,000,000 – $4,000,000 | ⚠ verify | | $4,000,000 – $6,000,000 | ⚠ verify | | Above $6,000,000 | 16% (top rate) — ⚠ verify exact bracket threshold |

MN Estate Tax Special Deductions

| ContentDetails** | | --- | --- | | Minnesota Farm Deduction | Special deduction for qualifying agricultural property; may significantly reduce or eliminate MN estate tax for farm estates — ⚠ editor verify current Minn. Stat. §291.03 farm deduction rules, requirements, and dollar cap | | MN Qualified Small Business (QSB) Deduction | Deduction for qualifying family business interests — ⚠ editor verify current Minn. Stat. §291.03 QSB rules, active business requirements, holding period, and dollar cap | | Annual gifting | No MN gift tax; $19,000/person/year (2026) reduces MN gross estate directly; 10-year gifting program can materially reduce MN estate tax | | Irrevocable Life Insurance Trust (ILIT) | Life insurance held in ILIT excluded from MN gross estate (3-year lookback under IRC §2035 applies) | | Charitable trusts | Amounts passing to charity excluded from MN gross estate |

MN Estate Tax Planning by Estate Size

| ContentPrimary RiskContentKey Strategies** | | --- | --- | --- | | Under $3M (single) / Under $3M (married) | No current MN estate tax — but monitor growth | Keep beneficiary designations current; TODD or trust for probate avoidance; annual gifting to stay below threshold | | $3M–$6M combined (married) | Without AB Trust: up to $480K+ avoidable MN estate tax | AB Trust: preserve both $3M exemptions; ILIT; annual gifting; consult attorney | | $6M–$10M+ combined (married) | MN estate tax on amounts above $6M even with AB Trust | AB Trust + ILIT + charitable giving + irrevocable trust planning; possibly GRATs, SLATs | | Farm or family business (any size) | Illiquid estate; MN estate tax on business/farm value | Qualify for MN Farm or QSB Deduction; business succession planning; instalment payment of MN estate tax (⚠ verify MN instalment election availability) |

Twin Cities Metro Check: Are You Closer to $3M Than You Think?

Minneapolis median home prices exceeded $350,000–$400,000 in recent years. A retired couple in Eden Prairie or Edina with a $700K home, $1.8M in combined IRAs, $500K in a joint brokerage account, and $300K in life insurance totals $3.3M — already above the MN $3M threshold. Life insurance death benefits are included in the MN gross estate. This makes MN estate tax a planning issue for many middle-class Twin Cities retirees, not just the ultra-wealthy. A simple review with a MN estate planning attorney will confirm whether you are at risk.

✅ Verified Legal Data — March 2026

• Minn. Stat. Ch. 291 — MN estate tax — confirmed

• MN estate tax exemption: $3,000,000 — ⚠ editor verify exact current figure

• MN estate tax rates: 13%–16% graduated — ⚠ editor verify current rate table from Minn. Stat. §291.03

• Form M706: due 9 months from death — confirmed

• MN portability: none — confirmed

• MN has no gift tax — confirmed

• MN farm deduction and QSB deduction: ⚠ verify current rules and caps

• Federal estate tax: $15,000,000 (PL 119-21, July 4, 2025) — confirmed

• Federal annual exclusion: $19,000/person (IRS 2026) — confirmed

Minnesota Series Navigation:

MN-1 → How to Avoid Probate in Minnesota

MN-2 → Minnesota Probate Process — Probate Court Step-by-Step

MN-3 → Minnesota Small Estate Affidavit & Summary Distribution

MN-4 → Minnesota Transfer on Death Deed (TODD)

MN-5 → Minnesota Revocable Living Trust

MN-6 → Minnesota Estate Tax: $3M Exemption, Rates & Planning

MN-7 → Minnesota Medicaid (Medical Assistance) & Estate Planning

MN-8 → Minnesota Living Trust vs. Will

probatepedia.com · /minnesota/estate-tax/ · MN-6 of 8 · v1.0 March 2026