Minnesota Salary Paycheck Calculator
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Minnesota Taxes: What You Need to Know
Minnesota’s residents with the highest income bracket face some of the nation’s highest income tax rates; the state’s sales and property tax rates are considered average.
The state of Minnesota also offers several programs aimed at helping senior citizens save on their taxes.
In many of Minnesota’s major cities, the combined sales tax rate (including state and local taxes) is above 7.50%. In Minneapolis, there is an additional 3% surtax on dining, alcohol, and entertainment in the downtown area. Also, Mankato and Proctor impose their surtaxes on food and beverages at rates of 0.5% and 1%, respectively.
For 2026, the income tax rates remain at 5.35% to 9.85% across four brackets, with bracket thresholds adjusted upward by 2.369% for inflation. The state’s sales tax rate is 6.875%. The state provides various tax deductions and credits — such as a childcare credit and a student loan credit — which can help lower your state tax liability. (Source)
Here’s a general overview of Minnesota’s state tax system for 2026.
Federal, State, and Local Tax Withholding
- Federal Tax Withholding: Employers must withhold federal income tax from employees’ wages based on the information provided on their W-4 forms. For 2026, federal rates range from 10% to 37%. (Source)
- State Tax Withholding: Minnesota requires employers to withhold state income tax from employees’ wages. The amount withheld depends on the employee’s earnings and the information provided on their W-4MN forms. (Source)
- Local Tax Withholding: Minnesota does not have local income taxes, but certain cities may have specific taxes or fees.
FICA & State Insurance Taxes
- FICA Taxes: FICA includes Social Security and Medicare taxes. For 2026, employers withhold 6.2% for Social Security on wages up to $184,500, and 1.45% for Medicare on all wages (with an additional 0.9% surtax on wages over $200,000 for single filers or $250,000 for married filing jointly). Employers match the 6.2% and 1.45% contributions. (SSA) (IRS)
- Minnesota Paid Leave (New in 2026): Starting January 1, 2026, Minnesota’s Paid Leave program is funded through employer and employee contributions. The first premiums are due April 30, 2026, covering wages paid January 1 through March 31, 2026. (Source)
- State Unemployment Insurance (UI): UI is entirely employer-funded — employees do not contribute. For 2026, the taxable wage base is $44,000 per employee, with a base tax rate of 0.40% and an additional assessment of 14.00%. The maximum experience rating is 8.90%. (Source)
Pre-Tax Deductions
- Medical Insurance: Contributions towards health and dental insurance premiums can be made pre-tax, reducing taxable income.
- 401(k) and Retirement Plans: Contributions to a 401(k) can also be made pre-tax. For 2026, the contribution limit is $24,500, with an additional $8,000 catch-up for those aged 50+, or $11,250 for those aged 60–63 under SECURE 2.0. (Source)
- Health Savings Accounts (HSA): For 2026, HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage. (Source)
- Flexible Spending Accounts (FSA): Up to $3,400 pre-tax for eligible medical expenses in 2026, with a maximum carryover of $680. (Source)
Tax Percentage Information
| Tax Type | Percentage |
|---|---|
| Federal Income Tax | 10% – 37% |
| Minnesota State Income Tax | 5.35% – 9.85% |
| Social Security (FICA) | 6.2% (on first $184,500) |
| Medicare (FICA) | 1.45% |
| Additional Medicare Surtax | 0.9% (high earners) |
| State Unemployment Insurance | Employer-only |
| Pre-Tax Medical Insurance | Varies |
| Pre-Tax 401(k) Contributions | Up to $24,500 (IRS limit) |
Median Household Income in Minnesota
According to the U.S. Census Bureau, the median household income in Minnesota was $92,350 in 2024 — slightly lower than $92,680 in 2023 (figures in inflation-adjusted 2024 dollars).
| Year | Median Household Income (Inflation-Adjusted) |
|---|---|
| 2024 | $92,350 |
| 2023 | $92,680 |
| 2022 | $96,350 |
| 2021 | $92,360 |
| 2020 | $94,460 |
(Source — FRED: Real Median Household Income in Minnesota)
Source: U.S. Census Bureau via Federal Reserve Bank of St. Louis (FRED). Inflation-adjusted (2024 C-CPI-U dollars).
Now, let’s look at the table that refers to the tax rates in Minnesota, including individual and corporate income taxes, sales taxes, property tax rates, and specific excise taxes on gas and cigarettes.
| Tax Type | Rate |
|---|---|
| Individual Income Tax | 5.35% – 9.85% |
| Corporate Income Tax | 9.8% |
| State Sales Tax | 6.875% |
| State Unemployment Insurance Wage Base | $44,000 (2026) |
| Estate Tax | Applicable (rate varies) |
Minnesota Tax Brackets 2026
Minnesota has a graduated income tax system, meaning the tax rate increases as income rises.
The state has four income tax brackets: 5.35%, 6.80%, 7.85%, and 9.85%. For tax year 2026, bracket thresholds were adjusted upward by 2.369% to reflect inflation.
For instance, if you are a single filer with a taxable income of $150,000, the first $33,310 would be taxed at 5.35%, income from $33,311 to $109,430 would be taxed at 6.80%, and income from $109,431 to $150,000 would be taxed at 7.85%. So, not all taxable income is taxed at the same rate.
Let’s understand the 2026 tax brackets in detail:
| Rate | Married Filing Jointly | Married Filing Separately | Head of Household | Single |
|---|---|---|---|---|
| 5.35% | $0 – $48,700 | $0 – $24,350 | $0 – $41,010 | $0 – $33,310 |
| 6.80% | $48,701 – $193,480 | $24,351 – $96,740 | $41,011 – $164,800 | $33,311 – $109,430 |
| 7.85% | $193,481 – $337,930 | $96,741 – $168,965 | $164,801 – $270,060 | $109,431 – $203,150 |
| 9.85% | Over $337,930 | Over $168,965 | Over $270,060 | Over $203,150 |
(Source — MN Department of Revenue 2026 Brackets)
2026 Standard Deduction and Dependent Exemption
| Filing Status / Item | 2026 Amount |
|---|---|
| Single | $15,300 |
| Married Filing Jointly | $30,600 |
| Married Filing Separately | $15,300 |
| Head of Household | $23,000 |
| Dependent Exemption | $5,300 |
(Source — MN Department of Revenue)
Frequently Asked Questions
Minnesota does not have local income taxes, so the Minnesota Paycheck Calculator does not need to account for them. It calculates your take-home pay by considering federal, state, and FICA taxes (Social Security and Medicare).
Yes, Minnesota offers several state-specific deductions and exemptions:
- Standard Deduction: For 2024, the standard deduction amounts are $29,150 for Married Filing Jointly, $14,575 for Married Filing Separately, $14,575 for Single filers, and $21,900 for Head of Household.
- Dependent Exemption: Each dependent can reduce your taxable income by $5,050.
- Itemized Deductions: Minnesota allows itemized deductions for medical and dental expenses, real estate taxes, home mortgage interest, charitable contributions, and more.
Yes, the KEKA paycheck calculator is updated regularly to reflect the latest tax laws. It includes the updated tax brackets and standard deductions.
Minnesota’s tax system is progressive, with rates ranging from 5.35% to 9.85%. While federal tax deductions include a broader range of itemized deductions, Minnesota allows most federal itemized deductions except for the deduction for state and local income taxes. The standard deduction amounts also differ between federal and state levels.
With KEKA Paycheck Calculator, you can input details for multiple jobs or additional income sources. KEKA allows you to enter information about various jobs, dependents, and other income sources to accurately estimate your take-home pay.
Pre-tax deductions such as health insurance premiums, retirement contributions (e.g., 401(k)), and Health Savings Account (HSA) contributions reduce your taxable income. The Minnesota Paycheck Calculator allows you to input these deductions to calculate your net pay accurately.
To adjust the calculator for filing jointly, select the “Married Filing Jointly” status and input the combined income and deductions for both spouses. This will ensure the calculator applies the correct tax brackets and standard deductions for joint filers.
