Minnesota Estate Tax Calculator (2026): Estimate What the Estate Owes
Figures verified October 17, 2026 against Minnesota Department of Revenue · Update log
Short answer
Yes. For deaths in 2026, Minnesota taxes estates over $3,000,000 at 13% to 16%. Minnesota adds back taxable gifts made within 3 years of death, and the rate starts at 13% on the first dollar over $3 million. The executor files M706 and pays from the estate, due 9 months after the date of death. Federal estate tax applies only above $15 million, so most estates that owe Minnesota tax owe nothing federally.
Minnesota estate tax calculator
Enter values at the date of death. Rough numbers are fine; type 450000, 450k or 2.5m. Leave anything that does not apply blank.
How the Minnesota estate tax is calculated
The starting point is the taxable estate: everything the person owned at death (the gross estate), minus debts and mortgages, funeral and administration costs, and what passes to a surviving spouse or to charity. The house, bank and brokerage accounts, retirement accounts, business interests and life insurance the person owned all count, including accounts that pass straight to a named beneficiary.
Minnesota subtracts the $3,000,000 exemption from the taxable estate and applies its graduated rates to what is left, slice by slice.
Minnesota rates for 2026 deaths
| Taxable estate over | Up to | Rate on that slice |
|---|---|---|
| $3,000,000 | $10,100,000 | 13% |
| $10,100,000 | $11,100,000 | 13.6% |
| $11,100,000 | $12,100,000 | 14.4% |
| $12,100,000 | $13,100,000 | 15.2% |
| $13,100,000 | and above | 16% |
Worked example: a $3.7 million Minnesota estate
An Edina widow dies with a $900,000 house, $1.5 million of investments, a $1 million IRA and a $300,000 life insurance policy she owned. Debts are $50,000 and costs $100,000. Two years before her death she gave $150,000 above the annual exclusion to her daughter.
Step by step
| Everything the person owned (gross estate) | $3,700,000 |
| Debts and mortgages | − $50,000 |
| Funeral and administration costs | − $100,000 |
| Taxable estate | $3,550,000 |
| Lifetime gifts added back | + $150,000 |
| Estate taxed by the state | $3,700,000 |
| State exemption (2026 deaths) | $3,000,000 |
| Estimated state estate tax | $91,000 |
Bracket by bracket
Minnesota rates applied to the amount over the exemption. Amounts are shown in estate dollars.
| Slice of the estate | Amount | Rate | Tax |
|---|---|---|---|
| $3,000,000 to $3,700,000 | $700,000 | 13% | $91,000 |
| Total from the brackets | $91,000 | ||
Result: Minnesota estate tax of $91,000, or 2.5% of the $3,700,000 taxable estate (with gifts added back). No federal estate tax, because the estate is under $15 million. Minnesota requires Form M706 when the gross estate plus taxable gifts made within 3 years of death is over $3,000,000, or a federal return is required.
Ways the number can change
- Gifts in the last 3 years. Federal taxable gifts made within 3 years of death are added on Form M706, line 2b, and count toward the $3,000,000 filing threshold.
- Farm and small business deduction. Qualified small business or farm property can be deducted, up to $2,000,000 for 2026 deaths, claimed on Schedule M706Q. It has conditions, so ask the preparer whether the property qualifies.
- A Minnesota-only QTIP election. Minnesota recognizes a federal QTIP election only if it was made on a federally filed Form 706, and also allows a separate Minnesota QTIP election for qualifying property.
- Real estate in another state. If the person owned a house or land in another state, Minnesota's figure can come down and the other state may want its own return. Most estate-tax states tax a resident's out-of-state real estate only in part or not at all, so give the preparer the addresses and values.
- Values at the date of death. The return uses appraised fair market values on the date of death. A house or business valued differently from your estimate moves the tax, at the Minnesota rate on that slice.
What the executor files, and when
- Minnesota M706: due 9 months after the date of death. Minnesota requires Form M706 when the gross estate plus taxable gifts made within 3 years of death is over $3,000,000, or a federal return is required.
- File Form M706 with the Minnesota Department of Revenue. The filing deadline extends automatically by 6 months, or by the IRS extension if longer, but the tax must still be paid within 9 months. Minnesota Department of Revenue.
- Federal Form 706: only if the estate is over $15 million, or to elect portability for a surviving spouse. Due 9 months after the date of death (an automatic 6-month extension to file is available on Form 4768).
Optional: get help filing
Get a flat-fee quote to file the Minnesota estate tax return
Tell us a little about the estate and a CPA or Enrolled Agent who prepares Minnesota M706 returns will reply with a fixed price. Free, and no obligation.
Frequently asked questions
How much is Minnesota estate tax on a $3.5 million estate?
About $65,000 on a $3,500,000 taxable estate, and about $260,000 on $5,000,000. That assumes a Minnesota resident with everything in Minnesota and no lifetime gifts. The taxable estate is what is left after debts, funeral and administration costs, and what goes to a spouse or charity.
Does Minnesota have an inheritance tax?
No. Minnesota has an estate tax, paid out of the estate before heirs receive their shares, and no inheritance tax. Heirs do not pay Minnesota tax on what they receive.
Who files the Minnesota estate tax return, and when is it due?
The executor (personal representative) files M706, due 9 months after the date of death. File Form M706 with the Minnesota Department of Revenue. The filing deadline extends automatically by 6 months, or by the IRS extension if longer, but the tax must still be paid within 9 months.
Does the estate have to file if it owes no Minnesota tax?
Minnesota requires Form M706 when the gross estate plus taxable gifts made within 3 years of death is over $3,000,000, or a federal return is required.
When is the Minnesota estate tax due?
The tax must be paid within 9 months of death. Form M706 is also due then, with an automatic 6-month extension to file (or the IRS extension, if longer), but not to pay.
Are life insurance and retirement accounts part of the estate?
Yes. Retirement accounts count at their full balance, and life insurance counts if the person owned the policy or it paid the estate, even when a named beneficiary receives the money. Income tax on withdrawals from an inherited IRA is separate and is paid by the heir.
Will the estate owe federal estate tax as well?
Only if it is over $15,000,000 for 2026 deaths. Minnesota's exemption is $3,000,000, so many estates owe Minnesota tax and no federal tax. The Minnesota tax paid is deductible on the federal return.
How accurate is this calculator?
It uses Minnesota's official rate table for 2026 deaths. It assumes the person lived in Minnesota with everything located there, and it uses the values you enter. The real return uses appraised values at the date of death and can include items it does not model, such as property in other states, state-only elections and credits for tax paid to other states.
Sources
This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.