Updated October 7, 2026. Quick answer: Minnesota’s estate tax exclusion is $3,000,000 for deaths in 2026, and the statute names $3,000,000 for decedents dying in 2020 and thereafter, so it also applies to 2027 unless the Legislature amends it. The federal exclusion is $15,000,000 for 2026.
Minnesota estate tax exemption: 2026 and 2027 at a glance
| Item | What the documents say |
|---|---|
| Exemption, 2026 deaths | $3,000,000 |
| How it is set | Fixed by statute for 2020 and thereafter |
| 2027 figure | $3,000,000, because the statute names it for 2020 and thereafter |
| Rates | 13 percent rising to 16 percent on the amount over $10,100,000 |
| Return and deadline | Form M706, due nine months after death |
| Federal basic exclusion amount, 2026 | $15,000,000 |
| Sources | Minnesota Office of the Revisor of Statutes; Minnesota Department of Revenue; IRS Revenue Procedure 2025-32 |
What changes in 2027
Minnesota Statutes section 291.016 lists the exclusion amounts by year of death and sets it at $3,000,000 for decedents dying in 2020 and thereafter. The sections read name a flat figure with no inflation adjustment.
The Department of Revenue’s filing table agrees: a return is required when the total gross value of the estate exceeds $3,000,000 for 2020 and later.
How the Minnesota estate tax works
The rate table in section 291.03 applies to the Minnesota taxable estate after the exclusion, and its top band is 16 percent of the amount over $10,100,000. The Department of Revenue says the return, Form M706, and payment are due nine months after a death, with an automatic six-month extension to file that does not extend the time to pay.
In the documents’ own words
- 2025 Minnesota Statutes 291.016 Minnesota Taxable Estate (Minnesota Office of the Revisor of Statutes): “$3,000,000 for decedents dying in 2020 and thereafter”
- Estate Tax Filing Requirement (Minnesota Department of Revenue): “total gross value of the estate exceeds the amount shown”
Minnesota estate tax rates as the state prints them
Copied from the state’s own document: Minnesota Statutes section 291.03, applied to the Minnesota taxable estate.
| Over | Up to | Tax |
|---|---|---|
| $0 | $7,100,000 | 13 percent |
| $7,100,000 | $8,100,000 | $923,000 plus 13.6 percent of the excess over $7,100,000 |
| $8,100,000 | $9,100,000 | $1,059,000 plus 14.4 percent of the excess over $8,100,000 |
| $9,100,000 | $10,100,000 | $1,203,000 plus 15.2 percent of the excess over $9,100,000 |
| $10,100,000 | and over | $1,355,000 plus 16 percent of the excess over $10,100,000 |
How this compares with the federal exemption
Federal estate tax is separate. Revenue Procedure 2025-32 says the One Big Beautiful Bill Act, section 70106, increased the “basic exclusion amount to $15,000,000 for calendar year 2026”. CMG’s page on the federal exemption for 2027 is the federal estate tax exemption for 2027. The state figure on this page is not the federal one: it is the exclusion amount Minnesota applies for the year of death. Under section 291.016, subdivision 3, an estate with qualified small business property or qualified farm property can subtract more, up to a total subtraction of $5,000,000.
What the documents do not say
- A definitions section of the estate tax law was amended in the 2026 session; the text of that amendment was not read for this page.
- Portability of an unused exclusion is not addressed in the documents read.
Common mistakes
- Using the federal $15,000,000 base for a Minnesota estate.
- Assuming no return is needed because no tax is due; the filing threshold is the gross estate, not the tax.
Related: Minnesota estate tax (2026), estate tax by state, the federal estate tax exemption for 2027, Minnesota probate cost, and Minnesota retirement taxes.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for estate planning
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your estate
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 Minnesota Statutes 291.016 Minnesota Taxable Estate: https://www.revisor.mn.gov/statutes/cite/291.016
- 2025 Minnesota Statutes 291.03 Rates: https://www.revisor.mn.gov/statutes/cite/291.03
- Estate Tax Filing Requirement: https://www.revenue.state.mn.us/estate-tax-filing-requirement
- Estate Tax Due Dates and Extensions: https://www.revenue.state.mn.us/estate-tax-due-dates-and-extensions
- 2025 Minnesota Statutes 291.005 Definitions: https://www.revisor.mn.gov/statutes/cite/291.005
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and an estate attorney, a tax preparer or the state agency itself is the right place to confirm anything consequential.