Minneapolis, MN – Seniors in Minnesota aged 65 and older could see substantial tax relief in 2025 thanks to an expanded standard deduction and multiple senior-specific benefits at both the state and federal levels.
Minnesota’s Higher Base Deductions
Minnesota allows residents to claim the state’s standard deduction regardless of whether they itemize federally. For the 2025 tax year, those base deduction amounts are:
- $14,950 for Single or Married Filing Separately
- $22,500 for Head of Household
- $29,900 for Married Filing Jointly or Qualifying Surviving Spouse
These amounts are higher than federal deductions, giving Minnesota residents a significant starting advantage when filing state taxes.
Extra Benefits for Seniors
For seniors aged 65 or older, Minnesota provides additional standard deduction boosts:
- $2,000 for single filers or heads of household
- $1,550 per spouse if both spouses are 65+ or blind on a joint return
These add-ons are stacked on top of the base deductions, lowering taxable income further for retirees.
Social Security and Pension Subtractions
Minnesota also offers income subtractions for seniors beyond the standard deduction:
- Some Social Security income is exempt for seniors with income under $82,190 (single) or $105,380 (joint).
- Pension income subtractions may also apply depending on the source and amount.
These subtractions offer additional relief to seniors living on fixed incomes.
Federal Senior Tax Breaks Stack On Top
In addition to Minnesota’s benefits, seniors can claim federal deductions, including:
- $2,000 extra for single filers aged 65+
- $3,200 if both spouses are 65+ on a joint return
Plus, under the One Big Beautiful Bill Act (OBBBA), seniors are eligible for an additional $6,000 deduction (or $12,000 per couple) for tax years 2025–2028. This bonus phases out for incomes over $75,000 (single) or $150,000 (joint) as per Kiplinger.
Example of Potential Savings
Consider a married couple, both over 65 and below income limits:
- Federal standard deduction: ~$31,500
- Federal senior bonus: +$3,200
- OBBBA bonus deduction: +$12,000
- Minnesota standard deduction: ~$29,900
- Minnesota senior addition: +$3,100
In total, that’s nearly $80,000 in deductions, which could significantly reduce taxable income and increase refund potential.
Filing Tips for Minnesota Seniors
To maximize these savings:
- Use Minnesota Form M1 to claim the state’s standard deduction and senior add-on.
- Complete Schedule M1R for age-based subtractions.
- Check if Social Security or pension income qualifies for subtraction.
- Combine both state and federal deductions strategically.
- Consider consulting a tax professional to ensure you benefit from the new OBBBA deductions.
Don’t Miss Out
Minnesota seniors have more tools than ever in 2025 to reduce their tax burden. Understanding how to combine state and federal deductions, and checking for eligibility on subtractions and bonus benefits, can make a huge financial difference during retirement.
Have a question or want to share your experience navigating Minnesota’s senior tax benefits? Drop your comments below—we’d love to hear from you.
