Minnesota is one of only a handful of states that taxes Social Security — and it taxes most other retirement income too. Here's what Florida saves you, and what Sun City Center offers Minnesota transplants.
Minnesota has a graduated income tax with rates up to 9.85% — among the highest top rates in the country. It taxes most retirement income including pensions, IRA distributions, and a portion of Social Security. The financial case for moving to Florida is among the strongest of any Midwest state for Minnesota retirees.
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Talk to a Specialist →| Income Source | Minnesota Treatment | Florida Treatment |
|---|---|---|
| Social Security | Partially taxed (exclusion phases out above ~$78K joint) | No state tax — fully exempt |
| Public pension (PERA, TRA) | Taxed at graduated rates | No state tax |
| Military pension | Exempt | No state tax |
| Federal pension | Taxed at graduated rates | No state tax |
| IRA / 401(k) distributions | Taxed at graduated rates (up to 9.85%) | No state tax |
| Investment income | Taxed at graduated rates | No state tax |
Minnesota's property tax system is complex — the state has a homestead market value exclusion that reduces taxable value for primary residences. Effective rates vary significantly by county and city. Metro area (Hennepin, Ramsey, Dakota, Washington counties) rates typically run 1.1–1.5%; greater Minnesota varies widely.
| Minnesota Market | Home Value | Annual Tax (est.) | Hillsborough FL (w/ homestead) |
|---|---|---|---|
| Hennepin County (Edina, Plymouth) | $520,000 | ~$6,240 (1.2%) | ~$4,475 on $340K FL home |
| Washington County (Woodbury) | $460,000 | ~$5,520 (1.2%) | ~$3,850 on $300K FL home |
| Rochester area (Olmsted County) | $370,000 | ~$4,440 (1.2%) | ~$3,850 on $300K FL home |
| Duluth / St. Cloud area | $260,000 | ~$3,120 (1.2%) | ~$3,580 on $280K FL home |
Twin Cities metro home values have appreciated significantly, particularly in first-ring suburbs and communities like Edina, Plymouth, Maple Grove, and Woodbury. However, Minnesota home values are generally lower than coastal Northeast markets, meaning MN sellers typically bring smaller equity positions than NY, NJ, or CT counterparts.
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Minnesota retirees moving to Sun City Center often mention specific things that resonate:
We work with Minnesota buyers who are making the full commitment south. Let us help you find the right community for your situation.
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