Rep. Jim Joy Delivers $400 Million in Tax Relief for Minnesotans

ST. PAUL, MN – In the final hours of the 2026 legislative session, Rep. Jim Joy (R–Hawley) successfully passed House File 2438 off the House floor, delivering $400 million in tax relief for hardworking Minnesotans.

As Vice Chair of the House Taxes Committee, Rep. Joy played a key role in the negotiations that produced the bipartisan agreement after weeks of discussions between House and Senate leaders.

“For the last two years, I have sat across kitchen tables, visited small businesses, talked with farmers, retirees, truck drivers, and working families all saying the same thing: they cannot keep up with the cost of living in Minnesota anymore,” Joy said. “People are doing everything right and still falling behind. Groceries cost more. Property taxes keep climbing. Vehicle tabs are outrageous. Families are being forced to make impossible choices just to stay afloat.”

Joy said House Republicans entered session determined to make tax relief a top priority and fought until the final moments of session to deliver meaningful relief.

“This bill is about giving Minnesotans some breathing room again,” Joy said. “Government does not create prosperity, hardworking people do. This money belongs to the taxpayers, not the government, and I am proud we were successful in putting some of it back where it belongs.”

The agreement emerged Sunday evening as House File 2438, which passed the House 126-8 and the Senate 52-15 before being sent to Governor Walz.

The final package includes:

  • $125 million in property tax cuts
  • $250 million in car tab fee reductions
  • Ending the ballpark tax
  • Federal tax conformity measures tied to the “One Big Beautiful Bill” to help Minnesota businesses and job creators
  • An extension of the Pass-Through Entity tax provision, providing hundreds of millions in relief for Minnesota businesses at zero cost to the state
  • A Sustainable Aviation Fuel credit
  • A nine-month delay of PFAS reporting requirements through the end of the 2027 session, giving Minnesota businesses relief from costly compliance burdens

As the 2026 session comes to a close, Joy said the fight to restore affordability and strengthen rural communities is far from over.

“I hope to return to the Capitol next January ready to keep fighting hard for rural Minnesota and to continue making Minnesota a great place to live, work, and raise a family,” Joy said.