Minnesota uses progressive tax brackets. Higher portions of pay are taxed at higher rates.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.
How a Minnesota paycheck is built
Every Minnesota worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.
Minnesota adds progressive state income tax. The bracket you fall into depends on filing status and taxable income. Verify current brackets with the Minnesota Department of Revenue.
What changed recently in Minnesota
- MN Paid Leave premium effective 2026, employee share around 0.35% of wages.
- Benefits begin 2026.
- No state-level rate change for 2025-2026.
Minnesota payroll quirks workers should know
- MN Paid Leave deduction will appear on Minnesota paychecks starting 2026.
- No local income tax in Minnesota.
- Minneapolis and St. Paul have separate minimum wage ordinances above state minimum.
Example breakdown
A hypothetical Minnesota worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.
| Gross (bi-weekly) | $2500.00 |
| Federal income tax | -$250.00 |
| Social Security (6.2%) | -$155.00 |
| Medicare (1.45%) | -$36.25 |
| Minnesota state tax | -$112.50 |
| Estimated take-home | $1946.25 |
Run your own numbers in the Minnesota paycheck calculator.
Authoritative sources
Frequently asked questions
- Does Minnesota have state income tax?
- Yes. Minnesota uses progressive brackets. Verify with the Minnesota Department of Revenue.
- Are there local income taxes in Minnesota?
- No. Minnesota does not have local income taxes on wages.
- Does Minnesota have State Disability Insurance or Paid Family Leave premiums?
- No. Minnesota does not have state-mandated SDI or PFL employee premiums.
- Does Minnesota have daily-overtime rules?
- No. Minnesota follows federal FLSA: 1.5x for hours above 40 in a workweek.
- What is FICA on a Minnesota paycheck?
- FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
- Where do I verify Minnesota state tax withholding?
- The Minnesota Department of Revenue (https://www.revenue.state.mn.us/) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
- When will the new Minnesota payroll deduction start?
- Minnesota Paid Leave premium begins January 2026.