MINNEAPOLIS—Minnesota’s income tax revenues hit a record $2.35 billion in 2019, according to the latest annual state income tax report released Tuesday.
That compares with $1.85 billion in the prior year.
Minnesota’s income taxes rose $1,093 million, or 7 percent, to $1 trillion in 2019.
Mark Dayton is expected to sign the final version of his income tax bill Wednesday, which is expected by mid-July.
The report also showed that the state’s unemployment rate fell to 3.9 percent, the lowest in the nation, from 4.3 percent in 2020.
The unemployment rate in the state was 6.3 in January.
The income tax also saw a boost to businesses thanks to an increase in state revenue for the Personal and Business Tax Credit.
The credit, which provides tax breaks for certain businesses, helped companies such as Walmart, Target and Kohl’s earn an estimated $1 billion in tax revenue for 2019.
The tax credit was $6.4 billion in 2020 and was expected to grow to $7 billion in 2021.
The 2018 credit was expected by 2020 to grow $2 billion to $5.5 billion, according the report.
The state also earned an additional $5 million in revenue from the federal tax credits.
That included an estimated increase of $500 million in state sales tax revenue to the federal government.
The state also increased the sales tax rate by 1 percent to 7 percent.
The increase was also partially offset by an additional tax credit of $1 million for low-income Minnesota families.