State tax debt in Minnesota is collected by Minnesota Department of Revenue, not the IRS. Request a plan online after you get a bill, if no levy has been issued. A lien can still be filed.
Key facts for Minnesota
- State income tax
- 5.35% to 9.85% for 2026. Source
- Payment plan
- Request a plan online after you get a bill, if no levy has been issued. A lien can still be filed. Source
- Offer program
- Yes. Use the Compromise Questionnaire and Application. An IRS yes does not mean a Minnesota yes. Source
- License risk
- Business or professional licenses can be revoked if you owe $500 or more. Source
- Taxpayer advocate
- Minnesota has a Taxpayer Rights Advocate. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Minnesota Department of Revenue collects Minnesota taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Minnesota
Who collects state taxes in Minnesota?
The Minnesota Department of Revenue. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Minnesota taxes?
Request a plan online after you get a bill, if no levy has been issued. A lien can still be filed.
Does Minnesota take offers in compromise?
Yes. Use the Compromise Questionnaire and Application. An IRS yes does not mean a Minnesota yes.
Can Minnesota suspend a license for tax debt?
Business or professional licenses can be revoked if you owe $500 or more.
Can TaxTruce help with Minnesota tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Minnesota. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Minnesota Department of Revenue and are linked. Rules change. Check with Minnesota Department of Revenue or a licensed tax pro before you act. We are not affiliated with Minnesota Department of Revenue.