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In efforts to increase state revenue and meet growing budgetary needs, the state of Minnesota has introduced several new tax measures that will affect both individuals and businesses. The announcement was made by Governor Mark Dayton during a press conference held on May 19, 2026.One of the key changes in the tax structure is the introduction of a new top income tax bracket for individuals earning over $250,000 per year. This new bracket will have a higher tax rate, aimed at increasing tax revenue from high-income earners. Additionally, the state has also decided to increase the sales tax rate by 1%, bringing it to a total of 7.5%.In addition to these changes, businesses operating in the state will see an increase in their corporate tax rates. The state corporate tax rate will be raised from 9.8% to 11.5%, affecting both large corporations and small businesses alike. These tax increases are expected to generate significant revenue for the state, which will be used to fund essential services such as education, healthcare, and infrastructure.Governor Dayton emphasized the need for these tax measures, citing the state's growing population and increasing demands for public services. He stated, "We have a responsibility to ensure that all Minnesotans have access to quality education, healthcare, and other essential services. These tax measures are necessary to meet our budgetary needs and invest in the future of our state."The announcement has sparked mixed reactions from residents and businesses in Minnesota. While some individuals have expressed concerns over the potential impact of these tax increases on their finances, others have voiced support for the measures, citing the importance of funding essential services.Overall, the introduction of these new tax measures marks a significant step towards boosting state revenue in Minnesota. As the state looks to address its budgetary needs and meet the demands of a growing population, these tax changes will play a crucial role in shaping the economic landscape of Minnesota in the coming years.