It’s important to know that Minnesota is a static conformity state. This means that unlike many other states, our Legislature must act to adopt tax laws passed at the federal level. Adoption is not automatic.

Under current law, definitions used in determining Minnesota taxable income are based on the Internal Revenue Code, as amended through May 1, 2023. Since that date, Congress enacted the 2025 Federal Tax Budget and Reconciliation Bill (H.R. 1). 

We have assembled a non-conformity webpage with all the information you need to know for tax years 2022 to 2025. You may need to make an adjustment to income on Minnesota returns because Minnesota has not adopted the federal changes relating to H.R. 1. No entries are necessary on Minnesota non-conformity schedules for tips and overtime pay because these are subtracted below-the-line on Federal Form 1040.

The Minnesota Legislature convenes on February 17 and is expected to address non-conformity during this year’s session. Please monitor our Tax Law Changes webpage and emails for the most recent updates.

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