Calculate your take-home pay in Minnesota with accurate state income tax (5.35-9.85%), federal withholding, and FICA deductions.
5.35-9.85%
State Income Tax
$11.13
Minimum Wage
5.7M
Population
💰 Free Payroll Calculator — 2026 Tax Year
Calculate your take-home pay with federal & state taxes
🏛️ Minnesota Payroll Tax Overview for 2026
Minnesota levies a state income tax with rates ranging from 5.35-9.85%. When calculating payroll in Minnesota, employers must withhold both federal and state income taxes, along with FICA contributions (Social Security at 6.2% and Medicare at 1.45%).
Minnesota Income Tax Brackets (2026)
Income Range
Tax Rate
$0.00 — $31,690.00
5.35%
$31,690.00 — $104,090.00
6.8%
$104,090.00 — $183,340.00
7.85%
$183,340.00 — and above
9.85%
Additional Minnesota Payroll Information
Minimum Wage (2026): $11.13 per hour
State Unemployment Insurance (SUI): 0.1-9% (employer-paid)
Capital: Saint Paul
Population: 5.7M
Note: High top rate. Also has paid family/medical leave tax.
📊 Minnesota Take-Home Pay Examples
See how much you'd take home at different salary levels in Minnesota (single filer, 2026 tax year):
Annual Salary
Federal Tax
State Tax
FICA
Take-Home
Eff. Rate
$50,000.00
$3,877.50
$2,940.50
$3,825.00
$39,357.01
21.29%
$75,000.00
$7,960.00
$4,640.50
$5,737.50
$56,662.01
24.45%
$100,000.00
$13,460.00
$6,340.50
$7,650.00
$72,549.51
27.45%
🏢 Employer Payroll Tax Cost in Minnesota
Employers in Minnesota must pay additional payroll taxes on top of each employee's salary. Here's the employer cost breakdown for a $75,000 salary:
Employer SS (6.2%)
$4,650.00
Employer Medicare (1.45%)
$1,087.50
FUTA (0.6%)
$42.00
Total Employer Cost
$80,779.50
+7.71% above salary
❓ Minnesota Payroll FAQ
To calculate payroll taxes in Minnesota, apply the state income tax rate of 5.35-9.85% to your taxable income, then add federal income tax (10-37% based on brackets), Social Security (6.2% up to $184,500), and Medicare (1.45%). Use our calculator above for instant, accurate results.
The minimum wage in Minnesota for 2026 is $11.13 per hour. This is above the federal minimum wage of $7.25/hour. At this rate, a full-time employee (40 hours/week) earns approximately $23,150/year before taxes.
Yes. Minnesota has a state income tax with rates of 5.35-9.85%. This is in addition to federal income tax and FICA taxes.
Disclaimer: This Minnesota payroll calculator provides estimates for informational purposes only. Actual tax withholdings may vary based on local taxes, additional deductions, and individual circumstances. Minnesota tax rates are based on 2026 figures from the IRS and Minnesota Department of Revenue. Consult a qualified tax professional for accurate payroll advice.
Disclaimer: NOT tax advice. Mustafa Bilgic is not a CPA, EA, or tax preparer. Consult a qualified tax professional before relying on these estimates.
Minnesota Payroll Tax Reference: Statutory Citations and 2026 Specifics
Minnesota Tax Law Citations (2026)
Minnesota individual income tax derives from Minnesota Statutes Chapter 290 — "Income and Franchise Taxes." Rate authority sits in Minn. Stat. § 290.06 ("Rates of tax; credits"); withholding mechanics derive from Minn. Stat. § 290.92. The Paid Family and Medical Leave program is codified at Minn. Stat. Chapter 268B — "Paid Leave" — enacted by Chapter 59 of the 2023 Special Session laws (House File 2). The Minnesota Department of Revenue ("MNDOR") publishes Form W-4MN and the annual Minnesota Withholding Tax Tables. Official portal: revenue.state.mn.us; Paid Leave portal: paidleave.mn.gov.
2026 income tax brackets (single filers). Minnesota uses four graduated brackets indexed annually under Minn. Stat. § 290.06: 5.35% on first ~$31,690; 6.80% from ~$31,690–~$104,090; 7.85% from ~$104,090–~$193,240; and 9.85% above ~$193,240. Married-filing-jointly brackets are roughly 1.5x to 2x. The state's bracket schedule changes by 2.369% from tax year 2025 to 2026 per MNDOR's December 2025 indexation announcement. Minnesota's 9.85% top rate is one of the highest in the United States — behind only California, Hawaii, and New York City's combined rate.
Recent legislation (2024–2026). The 2023 Minnesota Tax Bill (Chapter 64) and follow-on Chapter 59 Special Session created the Paid Family and Medical Leave program (collections began January 1, 2026; benefits begin January 1, 2026), expanded the Working Family Credit, and partially exempted Social Security benefits (full exemption for AGI under $100,000 single, phased out above). The 2024 Tax Bill made technical corrections and indexed thresholds. Minnesota's Net Investment Income Tax proposal (additional 1% on investment income above $1M) was discussed in 2025 but did not pass.
Minnesota 2026 Payroll-Specific Numbers
State Unemployment Insurance (SUI): Minnesota Department of Employment and Economic Development (DEED) administers UI under Minn. Stat. Chapter 268. For 2026, experience-rated employer rates range 0.10% to 9.10% on the first $45,000 of wages per employee (Minnesota UI taxable wage base, indexed and one of the higher state UI bases). New non-construction employers pay an industry-specific rate (typically 1.0%–3.0%); new construction employers pay higher rates aligned with construction industry experience.
Paid Family and Medical Leave (Minnesota Paid Leave): Effective January 1, 2026 per Minn. Stat. Chapter 268B. The 2026 total premium is 0.88% of wages for employers with more than 30 employees, split with employee paying 0.44% and employer paying 0.44%. For small employers (30 or fewer employees), the rate is 0.66%, with the employee still paying 0.44% and small employer paying 0.22%. Cap: $185,000 wage base for 2026.
Workers' Compensation: Minnesota Department of Labor and Industry administers under Minn. Stat. Chapter 176. Rates filed by Minnesota Workers' Compensation Insurers Association (MWCIA). 2026 voluntary loss-cost approximately $0.40 per $100 for clerical (Class 8810).
Disability Insurance: Minnesota does not impose a separate state-mandated short-term disability program; the Paid Leave program covers most disability-related leave needs.
State-Specific Items: Minnesota allows the Working Family Credit (refundable, similar to federal EITC), the K-12 Education Credit (up to $1,000 per child for school expenses), the Marriage Credit for two-earner couples, and partial exemptions for Social Security and active-duty military pay. Minnesota does not conform to federal Section 199A pass-through deduction; this requires a Minnesota addback.
Minnesota BLS Wage Data (May 2024 OEWS)
Per the BLS OEWS program, Minnesota's statewide median annual wage was approximately $52,830 in May 2024 — meaningfully above the U.S. median of $49,500. Source: bls.gov/oes/current/oes_mn.htm. Minneapolis-St. Paul-Bloomington MSA median wages run approximately $58,300 (one of the higher Midwest metros) and Rochester MSA approximately $54,200 (Mayo Clinic concentration). Top occupations include registered nurses (~$92,400), software developers (~$112,500), and general/operations managers (~$120,300). Minnesota has a heavy concentration of Fortune 500 headquarters (UnitedHealth, Target, Best Buy, 3M, U.S. Bancorp, Ecolab, General Mills, Land O'Lakes) which raises the wage floor.
Practitioner Insight: What Sets Minnesota Apart
What sets Minnesota apart for payroll calculations is the 9.85% top state income tax rate combined with the new 0.44% Paid Leave employee premium beginning January 1, 2026. For high earners (above ~$193,240 single), the combined state-side marginal payroll deduction is approximately 10.29% — among the highest in the country, alongside California and the New York-NYC combination. Employers must update payroll systems for the new Minnesota Paid Leave program in 2026, including the small-employer (30 or fewer) reduced employer share. Minnesota also stands out for its partial Social Security exemption (favorable for retirees with AGI under $100,000) and its non-conformity with the federal QBI deduction, which can create meaningful Minnesota tax liability for self-employed taxpayers who think their Schedule C is largely sheltered. Multi-state employers should also note that Minnesota has reciprocal income-tax agreements with North Dakota and Michigan, which simplify cross-border worker withholding for employees commuting from those states.
Editor's Note
Last reviewed by Mustafa Bilgic on 2026-05-05. Minnesota state tax law verified against the Minnesota Department of Revenue (revenue.state.mn.us), the Minnesota DOR 2026 brackets press release dated December 16, 2025 (revenue.state.mn.us 2026 brackets release), the Minnesota Paid Leave Division (paidleave.mn.gov), and IRS Publication 15-T (2026 edition). Mustafa Bilgic is the sole proprietor of PayrollCalculator.us, registered at Malazgirt No: 225, 02000 Adıyaman, Türkiye.
Sources: IRS Publication 15 (Circular E), state Departments of Revenue, Bureau of Labor Statistics (BLS) wage data, and Social Security Administration current FICA rates.
NOT TAX ADVICE: This is an estimate tool. Consult a qualified CPA, EA, or tax professional for your specific situation. We are not a tax preparer or financial advisor.