Minnesota paycheck guide
How Minnesota calculates income tax in 2026
Minnesota starts from federal adjusted gross income, then subtracts its own standard deduction: $15,300 for a single filer and $30,600 for a married couple filing jointly. That is close to the $16,100 federal amount, so Minnesota and federal taxable income are nearly the same for a typical single worker.
For a single filer, the first $33,310 of taxable income is taxed at 5.35%, income up to $109,430 at 6.8%, income up to $203,150 at 7.85%, and everything above at 9.85%. Joint filers get wider brackets, with the 6.8% rate starting at $48,700 and the top rate at $337,930. The thresholds are adjusted for inflation each year, but the four rates did not change for 2026.
Pre-tax 401(k), HSA, and payroll health premiums lower federal adjusted gross income, so they lower Minnesota tax too. For a single worker in the 6.8% bracket, a traditional 401(k) dollar saves 6.8 cents in state tax on top of the federal savings.
Worked example: a $75,000 salary in Minnesota
Begin with $75,000 of wages and subtract the $15,300 standard deduction, leaving $59,700 of Minnesota taxable income. The first $33,310 is taxed at 5.35%, which comes to $1,782. The remaining $26,390 is taxed at 6.8%, adding $1,795. Total Minnesota tax is $3,577, an effective state rate of 4.77%.
Federal tax uses the $16,100 federal standard deduction, leaving $58,900 taxable: $12,400 at 10%, $38,000 at 12%, and $8,500 at 22%, for $7,670. Social Security takes $4,650 and Medicare $1,088. That leaves take-home pay of $58,015, roughly $4,835 a month. The Minnesota $75,000 salary page splits this by pay period.
At $150,000 the third bracket comes into play. Taxable income of $134,700 includes $25,270 taxed at 7.85%, and the state bill reaches $8,942, a 5.96% effective rate.
Minnesota Paid Leave and other payroll deductions
Minnesota Paid Leave began on January 1, 2026. The program, run by the Department of Employment and Economic Development, is funded by a premium on wages, and employers may deduct up to half of it from employee paychecks. Our take-home figures do not include that deduction, so expect your deposit to be slightly smaller.
Minnesota has no city or county income tax. A worker in Minneapolis, St. Paul, Rochester, or Duluth pays the same state tax as one in a small town, so the only local variable on a paycheck is pre-tax benefits.
Withholding, Form W-4MN, and border workers
Minnesota employers use Form W-4MN, not the federal W-4, to set state withholding. Fill it out when you start a job and update it after a marriage, a new child, or a second job, since a two-earner household can be underwithheld when each employer assumes it pays the only salary.
Minnesota has reciprocity with North Dakota and Michigan. Residents of those states who work in Minnesota give their employer Form MWR each year and pay income tax only at home. Fargo-Moorhead and Grand Forks commuters use this agreement most.
Wisconsin is different. The Minnesota-Wisconsin reciprocity agreement ended after 2009, so Hudson and Superior residents who work in the Twin Cities or Duluth have Minnesota tax withheld and claim a credit on their Wisconsin return. It works the same way in reverse: a Minnesota resident working in Iowa or Wisconsin pays that state's tax and claims a credit for it on Form M1.
How Minnesota compares with its neighbors
Minnesota's take-home pay ranks 47th of 51 at $75,000 and 46th at $150,000. South Dakota, with no income tax, leaves a single $75,000 earner $3,577 more. North Dakota's low two-bracket tax of $182 leaves $3,395 more, Iowa's flat 3.8% leaves $1,379 more, and Wisconsin's brackets leave $633 more.
Those gaps are why the Fargo-Moorhead and Sioux Falls areas draw cross-border comparisons. See Minnesota vs North Dakota and Minnesota vs Wisconsin for side-by-side paychecks, and remember that where you live, not just where you work, sets your state tax under the North Dakota agreement.
Credits that offset Minnesota's high rates
Minnesota's rates are high, but several credits claimed on Form M1 bring them down for families and renters. The refundable child and working family credit can return more than was withheld for lower-income households. Renters can claim a renter's credit based on rent paid and income.
These credits are claimed when you file, so they do not show up in your paycheck or in the estimates on this page. If you expect a large credit, you can reduce withholding on Form W-4MN rather than waiting for a refund.
What to expect at your income
Earning under $50,000
Minnesota's 5.35% starting rate applies from the first dollar above the standard deduction, so lower earners pay more here than in most states. A single filer earning $30,000 owes $786 to Minnesota and takes home $25,499. Earn $50,000 and the state's share rises to $1,877, or 3.75% of pay, with $40,478 left after all taxes. At this income, check the refundable child and working family credit when you file Form M1, especially if you have children.
Earning $50,000 to $150,000
In this band most of your raise is taxed at 6.8% by Minnesota, rising to 7.85% above $109,430 of taxable income. A single filer earning $100,000 pays $5,277 to the state and takes home $73,903, or $6,159 a month. Joint filers with one $100,000 paycheck owe Minnesota $4,013 and take home $80,697. Traditional 401(k) and HSA contributions reduce both Minnesota and federal tax, which makes them worth more here than in a flat-tax state.
Earning over $150,000
A single filer earning $150,000 owes $8,942 to Minnesota and takes home $104,849. At $250,000 the standard deduction begins to phase down, to $15,132 in our example, the top 9.85% rate applies to income above $203,150, and the bill reaches $17,439. Take-home is $165,743, a 6.98% effective state rate. High earners weighing a move to South Dakota or North Dakota should note that only a change of residence, not of employer, cuts Minnesota tax on wages earned while living in Minnesota.
Minnesota paycheck tips
File Form MWR every year
North Dakota and Michigan residents working in Minnesota must give their employer Form MWR each year to stop Minnesota withholding under reciprocity.
Fix W-4MN in two-earner homes
When both spouses work, each employer withholds as if its salary is the only one. Add extra withholding on Form W-4MN to avoid a balance due.
Check the Paid Leave line
Minnesota Paid Leave premiums started in 2026 and are not in this estimate. Compare the line on your pay stub with our figures to reconcile your deposit.
Claim the renter's credit
Renters with qualifying income can claim Minnesota's renter's credit. Your landlord provides a certificate of rent paid that you use to file.
Max out pre-tax accounts
At a 6.8% or 7.85% state marginal rate, traditional 401(k) and HSA contributions save more state tax in Minnesota than in most states.
Common mistakes
Assuming Wisconsin reciprocity still applies
The agreement ended after 2009. Wisconsin residents working in Minnesota now have Minnesota tax withheld and claim a credit at home.
Comparing only top rates
Minnesota's 9.85% top rate starts above $203,150 of taxable income. At $75,000 the effective rate is 4.77%, so check the effective figure before ruling out an offer.
Leaving out the Paid Leave deduction
Budgeting from income tax alone overstates take-home pay in 2026, because employers can now deduct part of the Minnesota Paid Leave premium from your paycheck.
Moving to or from Minnesota
Moving to Minnesota
Moving to Minnesota from South Dakota or North Dakota means a noticeable pay cut: $3,577 or $3,395 a year at $75,000. From Wisconsin the gap is $633 and from Iowa $1,379. Budget for the new Minnesota Paid Leave deduction as well. Minnesota offsets some of that with refundable family credits and a renter's credit, so check them if you have children or rent.
Leaving Minnesota
Leaving Minnesota for South Dakota saves a single $75,000 earner $3,577 a year, and a move to Iowa or Wisconsin saves $1,379 or $633. Minnesota taxes you as a part-year resident on income earned before the move, so file Form M1 with Schedule M1NR for that year. If you keep a Minnesota job after moving, Minnesota still taxes wages for work done in the state, unless you move to North Dakota or Michigan and file Form MWR.