Minnesota Payroll · Graduated 5.35%–9.85% · Form W-4MN · IRS Publication 15-T
Minnesota Paycheck Calculator 2025
Estimate your Minnesota take-home pay for hourly or salaried work in a single form. The calculator deducts federal income tax withholding, Social Security, Medicare, and the graduated Minnesota income tax using the Department of Revenue computer formula: it subtracts $5,200 for each Form W-4MN allowance before applying the 5.35 percent to 9.85 percent schedule for your single or married status. Uses 2025 IRS Publication 15-T and the current Minnesota withholding formula.
Pay Details
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional withholding per paycheck
Minnesota Tax (Form W-4MN)
Sets the Minnesota rate chart. Married employees where both spouses work may choose "married, withhold at single rate."
From Form W-4MN. Each allowance removes $5,200 of annual wages before tax. No W-4MN on file means zero allowances.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Minnesota payroll picture, including how the computer formula reconciles on Form M1, the "married but withhold at single rate" option for two-earner couples, the arrival of Minnesota Paid Leave in 2026, and the employer unemployment obligations? Read the Minnesota Payroll Taxes guide.
Minnesota Payroll Taxes Guide →Short Answer
This Minnesota paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and the graduated Minnesota income tax. Minnesota withholds by annualizing wages, subtracting $5,200 per Form W-4MN allowance, then applying the 5.35 percent to 9.85 percent withholding rate schedule for single or married status. For a single Minnesota worker earning $65,000 per year paid biweekly with one allowance, gross pay is about $2,500 per period, and net take-home is roughly $1,955 after about $227 of federal withholding, FICA, and about $126 of Minnesota income tax. Minnesota has no local wage tax and, for 2025, no state disability or family leave deduction.
Key Takeaways
- Minnesota withholds a graduated income tax on every paycheck. This calculator applies the Department of Revenue computer formula: annualize wages, subtract $5,200 per Form W-4MN allowance, then apply the 5.35 percent to 9.85 percent schedule for single or married status and divide by pay periods.
- Each Minnesota allowance is worth $5,200 of annual wages for 2025 (rising to $5,300 for 2026). At the 6.80 percent band, one allowance lowers annual Minnesota withholding by about $354; at the 9.85 percent top rate it is worth about $512.
- Form W-4MN, not the federal W-4, sets your Minnesota withholding. Since 2020 the federal W-4 no longer computes Minnesota allowances, so an employee who files no W-4MN is withheld as single with zero allowances, which is the highest withholding.
- Minnesota's top rate is 9.85 percent, among the highest in the nation. It begins on the wage after allowances above $203,180 for single filers and $344,710 for married filers in the withholding formula.
- Federal income tax uses the IRS Publication 15-T percentage method on annualized wages. Social Security is 6.2% up to the 2025 wage base of $176,100; Medicare is 1.45% with no cap plus a 0.9% surtax that employers withhold on wages above $200,000.
- Minnesota has no municipal or county wage income tax, and for 2025 no employee-paid disability, family leave, or unemployment deduction. Minnesota Paid Leave premiums begin January 1, 2026. For supplemental pay such as bonuses and RSUs, use the Bonus Tax Calculator and RSU Tax Calculator.
2025 Minnesota Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $176,100 (2025) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| Minnesota Income Tax | 5.35%–9.85% | Withholding rate schedule | Graduated. Withheld via the computer formula after $5,200 per W-4MN allowance, using the single or married chart. |
| MN withholding allowance | – | $5,200 each (2025) | From Form W-4MN. Reduces annual wages before tax. Rises to $5,300 for 2026. |
| Employee disability / family leave | None (2025) | – | No employee deduction in 2025. Minnesota Paid Leave premiums begin Jan. 1, 2026 (employee share up to 0.44%). |
| Employee unemployment (UI) | None | – | Unemployment is employer-funded; the 2026 taxable wage base is $44,000. |
| Local wage income tax | None | – | No city or county wage tax anywhere in Minnesota. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $176,100 wage base for 2025. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages, so for workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2025:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
Minnesota Income Tax Withholding
Minnesota withholds income tax using the computer formula in the Department of Revenue's 2025 Income Tax Withholding Instruction Booklet. Unlike a flat-rate state, Minnesota applies a graduated rate schedule to the annual wage after allowances, choosing a single or married chart. The steps are:
- Annualize the per-period gross pay (multiply by pay periods per year).
- Multiply the number of Form W-4MN allowances by $5,200 and subtract that from the annual wage. If the result is zero or less, no Minnesota tax is withheld.
- Apply the graduated withholding rate schedule below for your W-4MN status, then divide by pay periods to get the per-period withholding.
| Annual wage after allowances (single) | Withholding |
|---|---|
| $0 to $4,550 | $0 |
| $4,550 to $37,120 | 5.35% of the excess over $4,550 |
| $37,120 to $111,540 | $1,742.50 + 6.80% of the excess over $37,120 |
| $111,540 to $203,180 | $6,803.06 + 7.85% of the excess over $111,540 |
| Over $203,180 | $13,996.80 + 9.85% of the excess over $203,180 |
| Annual wage after allowances (married) | Withholding |
|---|---|
| $0 to $14,300 | $0 |
| $14,300 to $61,920 | 5.35% of the excess over $14,300 |
| $61,920 to $203,480 | $2,547.67 + 6.80% of the excess over $61,920 |
| $203,480 to $344,710 | $12,173.75 + 7.85% of the excess over $203,480 |
| Over $344,710 | $23,260.31 + 9.85% of the excess over $344,710 |
These are the 2025 Minnesota computer-formula withholding rates. Your final Minnesota income tax is settled on Form M1, where the statutory brackets and the actual standard deduction and credits apply. Because withholding is an estimate, small differences are reconciled at filing.
What Minnesota Does Not Deduct (2025)
For 2025, Minnesota has no state disability insurance, no paid family leave payroll deduction, and no employee unemployment tax. Unemployment insurance is funded entirely by employers through the Minnesota Unemployment Insurance program. There is also no local wage tax anywhere in Minnesota. Minnesota's Paid Leave program begins collecting premiums on January 1, 2026; until then, the only Minnesota line on a pay stub is the state income tax.
Real-World Paycheck Scenarios
Scenario 1: Single Worker Paid Biweekly
Priya earns $65,000 per year at a firm in Minneapolis. She is paid biweekly, files single on her W-4, uses the single W-4MN status, and claims one allowance. Her biweekly gross is $65,000 ÷ 26 = $2,500.00.
Minnesota income tax detail (annualized): one allowance removes $5,200, so the annual wage after allowances is $65,000 − $5,200 = $59,800. On the single chart that is $1,742.50 + 6.80% of ($59,800 − $37,120) = $3,284.74 for the year, divided by 26 = $126.34 per paycheck. Notice there are no disability, family leave, or unemployment lines for 2025, money a worker in New Jersey or Washington would see deducted.
Scenario 2: Married Two-Earner Household
Ben earns $95,000 as a project manager in St. Paul. He is paid biweekly, is married filing jointly on his W-4, uses the married W-4MN status, and claims two allowances. His biweekly gross is $95,000 ÷ 26 = $3,653.85.
Ben's Minnesota tax: two allowances remove $10,400, so the annual wage after allowances is $95,000 − $10,400 = $84,600, which on the married chart is $2,547.67 + 6.80% of ($84,600 − $61,920) = $4,089.91 for the year, divided by 26 = $157.30. Because the married chart is wide, if Ben's spouse also works and also uses married status, the couple can under-withhold. Choosing "married, but withhold at single rate" on the W-4MN raises each check's withholding and closes that gap at filing.
Practitioner Insight
The single most common Minnesota surprise we see is a blank Form W-4MN. Since 2020 the federal W-4 no longer carries Minnesota allowances, so an employee who only filled out a W-4 at hire is defaulted to single with zero allowances and over-withheld all year. People assume the two forms are the same and are startled to learn Minnesota has its own certificate. Filing a W-4MN with the correct status and allowance count usually fixes an over-withholding complaint in one step, because each allowance is worth $5,200 of annual wages, about $354 at the 6.80 percent band.
The second pattern is two-earner married couples. Minnesota's married rate chart is intentionally wide, so when both spouses work and both use married status, each employer withholds as if that salary were the household's only income, and the couple lands short at filing. The fix is on the form itself: the W-4MN lets a married employee elect "married, but withhold at the single rate," which pulls a bit more from each check. We walk clients through that box whenever a household has two incomes near or above the median.
The third thing we are now flagging for 2026 is Minnesota Paid Leave. Premiums start January 1, 2026, and employers can deduct up to half of the 0.88 percent total, an employee share up to 0.44 percent of wages. A 2025 Minnesota stub does not show it, but employees should expect a new small Paid Leave line beginning with their first 2026 paychecks.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) or 403(b) contribution and Section 125 medical premiums reduce the wages subject to both federal and Minnesota income tax withholding. This calculator does not model pre-tax deductions, so actual income tax withholding is lower and net pay is typically higher than the estimate.
- Two-earner married households: If both spouses work and both use the married W-4MN status, combined withholding can fall short of the year-end liability because the married chart is wide. Electing "married, but withhold at single rate" on the W-4MN raises each check's withholding.
- Wage-bracket versus computer formula: Minnesota also publishes wage-bracket withholding tables. Small employers using the bracket tables can differ by a few cents from the computer-formula method this calculator uses; both are approved and reconcile on Form M1.
- Year-to-date Social Security cap: The calculator annualizes Social Security evenly. For a worker who passes the $176,100 wage base mid-year, actual Social Security withholding stops at that point rather than spreading across every paycheck.
- Supplemental wages: Bonuses, commissions, and other supplemental pay are withheld at Minnesota's flat 6.25% supplemental rate, not the graduated schedule. For the federal supplemental math on a bonus, use the Bonus Tax Calculator.
Frequently Asked Questions
How is take-home pay calculated in Minnesota?
Minnesota take-home pay equals gross pay minus federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and Minnesota income tax withholding. Federal withholding uses IRS Publication 15-T. Minnesota income tax is withheld with the Department of Revenue computer formula: annualize wages, subtract $5,200 for each Form W-4MN allowance, then apply the graduated 5.35 percent to 9.85 percent withholding rate schedule for single or married status and divide by pay periods. Minnesota has no local wage income tax, and for 2025 it deducts no state disability, family leave, or employee unemployment contributions.
What are Minnesota's income tax withholding rates for 2025?
Minnesota's computer formula uses four graduated rates on the annual wage after allowances: 5.35 percent, 6.80 percent, 7.85 percent, and 9.85 percent. For a single employee the 9.85 percent top rate begins once the wage after allowances exceeds $203,180; for a married employee it begins over $344,710. Minnesota's 9.85 percent top rate is one of the highest state income tax rates in the country.
How does Form W-4MN affect my Minnesota withholding?
Form W-4MN is Minnesota's own withholding allowance certificate; since 2020 the federal Form W-4 no longer computes Minnesota allowances, so every employee should complete a W-4MN. It sets your Minnesota filing status (single or married, which selects the rate chart) and your number of allowances. Each allowance removes $5,200 of annual wages before the rate schedule is applied for 2025. If you do not file a W-4MN, the employer must withhold at the single status with zero allowances, which is the highest withholding.
What is a Minnesota withholding allowance worth?
Each Form W-4MN allowance subtracts $5,200 of annual wages before Minnesota tax is figured for 2025 (rising to $5,300 for 2026). For a middle-income single worker in the 6.80 percent band, one allowance lowers annual Minnesota withholding by about $354 (5,200 times 6.80 percent), and at the 9.85 percent top rate it is worth about $512. Claiming more allowances lowers withholding; claiming zero raises it. A newly hired employee who files no W-4MN is treated as single with zero allowances.
Does Minnesota have a local city income tax?
No. Minnesota has no municipal or county wage income tax withheld from employees anywhere in the state, including Minneapolis, St. Paul, Rochester, and Duluth. A Minnesota pay stub shows federal taxes and the state income tax, with no city or local wage line. This differs from states such as Ohio or Indiana, where cities or counties layer a local income tax on top of the state tax.
Is Minnesota Paid Leave deducted from my 2025 paycheck?
No. Minnesota's Paid Leave program does not collect premiums until January 1, 2026, so a 2025 Minnesota paycheck has no Paid Leave line and no other state disability or family leave deduction. Beginning in 2026, employers may deduct up to half of the 0.88 percent total premium from employees, an employee share of up to 0.44 percent of wages (maximum about $814 for 2026) on wages up to the $185,000 wage base. For 2025 the only Minnesota line on your stub is the state income tax.
Why is my Minnesota take-home pay lower than a neighboring state?
Minnesota's graduated income tax runs from 5.35 percent up to 9.85 percent, and even the lowest 5.35 percent bracket is higher than the flat rates in many nearby states. So at the same salary a Minnesota worker generally keeps less of each paycheck than a worker in South Dakota (no income tax), Iowa, or North Dakota. Minnesota does not deduct employee disability, family leave, or unemployment for 2025, so the stub is short, but the income tax rate itself is what drives the difference.
What is the Social Security wage base for 2025?
The Social Security wage base for 2025 is $176,100. Social Security tax at 6.2% applies to wages up to this amount, and withholding stops once cumulative wages exceed $176,100 for the year. Medicare has no wage base limit and continues at 1.45% on all wages. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately.
What To Do Next
If your Minnesota paycheck estimate looks off, first confirm you filed a Form W-4MN with your employer (the federal W-4 does not set Minnesota withholding) and that the status and allowance count match what you intended, then check whether pre-tax benefit deductions (401k, health insurance) are lowering your taxable wages. If you are married and both spouses work, consider electing "married, but withhold at single rate" on the W-4MN so you are not short at filing. To see how your withholding connects to your year-end return, read the Minnesota Payroll Taxes guide and our How Payroll Taxes Work guide.
For hourly workers who also receive overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. For a generic multi-state view, use the Paycheck Calculator. To understand every line item on your Minnesota pay stub, see our How to Read a Pay Stub guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator. To track a filed state or federal refund, use the Refund Tracker.
Sources & Editorial Disclosure
- Minnesota Department of Revenue, 2025 Income Tax Withholding Instruction Booklet and Tax Tables, Computer Formula (page 34): $5,200 per allowance and the single and married graduated withholding charts (5.35%, 6.80%, 7.85%, 9.85%). Boundary reproduced to the cent (annual wage after allowances of $37,120 single yields $1,742.50)
- Minnesota Department of Revenue, Withholding Tax, Form W-4MN requirement (federal W-4 does not compute Minnesota allowances since 2020; no W-4MN defaults to single, zero allowances), 6.25% supplemental rate
- Minnesota Paid Leave, Premium rate and contributions, 2026 total premium 0.88%, employee share up to 0.44%, wage base $185,000 (premiums begin January 1, 2026)
- Minnesota Unemployment Insurance, Tax Rates, employer-funded unemployment, 2026 taxable wage base $44,000
- IRS Publication 15-T (2025), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- Social Security Administration, 2025 Wage Base ($176,100)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS or the Minnesota Department of Revenue. For informational purposes only.