CALCMONEY // BUSINESS VALUATION // MN
Minnesota taxes capital gains at 5.35%–9.85% on top of the 23.8% federal rate. A $10M exit nets $6,635,000 after taxes.
Open Full Calculator5.35%–9.85%
33.6%
$33,175,000
$16,825,000
| Multiple | Sale Price | Total Tax | Net Proceeds |
|---|---|---|---|
| 3x (small market) | $6,000,000 | $2,019,000 | $3,981,000 |
| 5x (mid-market) | $10,000,000 | $3,365,000 | $6,635,000 |
| 8x (premium/SaaS) | $16,000,000 | $5,384,000 | $10,616,000 |
Federal rate: 23.8% (20% long-term + 3.8% NIIT). State rate: 9.8%. Assumes long-term asset sale. Results are estimates only.
Minnesota taxes capital gains as ordinary income at 5.35%–9.85%. A founder who started a company with minimal investment and sells for $8M recognizes nearly all proceeds as taxable gain. Installment sales allow Minnesota sellers to spread gain across multiple tax years, potentially keeping each year below a bracket threshold.
Qualified Opportunity Zone reinvestment defers federal gain but does not defer MN state tax unless the state has adopted a conforming QOZ provision. Consult a tax attorney before finalizing deal structure.
Results are estimates for informational purposes only. Consult a licensed financial advisor before making financial decisions. CalcMoney is not a licensed financial advisor.