Minnesota payroll taxes

Minnesota state income tax: Progressive. Employers withhold using your W-4MN and the latest Minnesota Revenue tables.
Local income tax: Minnesota cities/counties do not levy wage-based local income taxes on employees.
FICA (federal): Social Security and Medicare—see the FICA section below.
Federal income tax (FIT): Withheld using IRS rules based on your federal Form W-4.
State Unemployment Insurance (SUI): Employer-paid only; employees do not pay Minnesota UI from wages.
Pre-tax deductions: 401(k), HSA/FSA, and Section 125 premiums may reduce taxable wages (FIT/state, and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, and other after-tax items reduce net pay after taxes.

How Your Minnesota Paycheck Works

Start with gross pay (salary for the period, or hourly rate × hours; include overtime where due).
Subtract pre-tax deductions (traditional 401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Compute FICA (Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS methods and your W-4 elections.
Calculate Minnesota state withholding using W-4MN and current state tables.
Employer separately pays Minnesota SUI—this does not reduce your take-home pay.
Subtract post-tax deductions to reach your net pay.

Minnesota unemployment insurance (SUI) — 10-year snapshot

Employees do not pay Minnesota UI from wages. Employers contribute on a taxable wage base at experience or new-employer rates. Always confirm your annual rate notice.

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$31,000	~1.9%	~0.1%–8.9%
2017	0%	No	$32,000	~1.9%	~0.1%–9.0%
2018	0%	No	$33,000	~1.9%	~0.1%–9.0%
2019	0%	No	$34,000	~1.9%	~0.1%–9.0%
2020	0%	No	$35,000	~1.9%	~0.1%–9.0%
2021	0%	No	$35,000	~1.9%	~0.1%–9.4%
2022	0%	No	$38,000	~1.9%	~0.1%–9.4%
2023	0%	No	$40,000	~1.9%	~0.1%–9.4%
2024	0%	No	$40,000	~1.9%	~0.1%–9.8%
2025	0%	No	$40,000	~1.9%	~0.1%–10.0%

Minnesota salary threshold

Minnesota generally follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and applicable duties tests. If either test is not met, overtime is due after 40 hours in a workweek.

Median Household Income — Minnesota (10 years, current dollars)

Illustrative nominal values to show trend; consult the latest American Community Survey for official figures.

Year	Median Household Income
2015	$66,200
2016	$68,800
2017	$71,300
2018	$74,500
2019	$77,700
2020	$78,100
2021	$83,000
2022	$90,100
2023	$94,200
2024	$96,000

Minnesota Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the annual federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Minnesota does not impose municipal or county wage-based income taxes on employees’ paychecks. You will typically see federal withholding, Minnesota state income tax, FICA, and benefit or court-ordered deductions. Some local governments assess employer business fees, but those are not employee paycheck deductions and do not alter standard withholding.

Local income tax table (employee wage tax)

City/County	Local Income/Wage Tax	Notes
Statewide (Minnesota)	None	No city/county percentage-of-wages income tax

Minnesota Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× after 40 hours/week (no statewide daily overtime rule).
Minimum wage: Minnesota sets statewide minimums by employer size; some cities set higher local minimum wages (these do not create local income taxes).
Pay frequency: Employers must establish regular, posted paydays (biweekly or semimonthly common) and pay wages on time; final-pay deadlines apply at separation.
Breaks/meals: Follow state and federal rules; minors and certain industries have additional protections.

Additional Minnesota forms

W-4MN — Minnesota Employee Withholding Allowance/Exemption Certificate.
Withholding returns — Employer deposit schedule and annual reconciliation with W-2 filing.
UI Employer Registration & Rate Notice — Minnesota UI account setup and annual rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required posters — Minnesota wage/hour, safety, UI, and federal postings.

FAQs — Minnesota Salary Paycheck Calculator

How do I use a Minnesota Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 and W-4MN elections, pre-tax items (401(k), HSA/FSA), and post-tax deductions. The calculator applies FICA, federal withholding, and Minnesota state withholding to produce per-paycheck and annual take-home estimates.

Does any Minnesota city take a local income tax from my paycheck?

No. Minnesota does not have city or county wage-based income taxes. Your pay stub normally shows federal and state withholding, FICA, and any benefit/garnishment deductions.

Do Minnesota employees pay unemployment tax from wages?

No. Minnesota Unemployment Insurance is funded by employer contributions only. Employees will not see a state UI deduction line on their pay stubs.

What salary makes me exempt from overtime in Minnesota?

Minnesota generally follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the applicable duties tests; otherwise overtime is due after 40 hours/week.

How are bonuses and commissions taxed on a Minnesota paycheck?

They are subject to federal withholding (IRS supplemental methods), FICA, and Minnesota state withholding. No local wage tax applies. Employer UI remains an employer expense and doesn’t reduce your net.

Which form adjusts my Minnesota state withholding?

Use W-4MN to set or update your Minnesota withholding elections—especially after life events, address changes, or when holding multiple jobs.

Why is my coworker’s take-home different even with the same salary?

Differences in W-4/W-4MN elections, pre-tax benefits, Roth vs. traditional contributions, supplemental wage withholding methods, and garnishments can all change taxable wages and withholding, resulting in different net pay.

Does the calculator consider HSA/FSA and 401(k) contributions?

Yes. Enter those amounts; they reduce taxable wages for FIT/Minnesota and sometimes FICA, usually improving take-home compared with taking the same deductions after tax.

How often must I be paid in Minnesota?

Employers must maintain regular, posted paydays and pay on time; biweekly and semimonthly schedules are common. Final-pay deadlines apply at separation per state rules.

Can I claim “exempt” from Minnesota withholding on W-4MN?

You may claim exempt on W-4MN only if you meet the state’s criteria (e.g., you owed no Minnesota income tax last year and expect to owe none this year). If you do not meet the criteria, do not claim exempt—use standard allowances or request a flat extra amount instead.

How do multiple jobs affect my Minnesota paycheck estimate?

Multiple jobs can push you into higher federal and state brackets. Use the multiple-job steps on your federal W-4 and reflect the total income when estimating Minnesota withholding to avoid under-withholding.

Do Minneapolis or St. Paul local minimum wages change my taxes?

Local minimum wages affect your gross pay, not your tax rates. The calculator will still apply FICA, federal, and Minnesota state withholding. There is no Minnesota city income tax on wages.

How does the calculator handle nonresident work in Minnesota?

If you earn Minnesota-source wages as a nonresident, Minnesota withholding generally applies. Enter your filing status and withholdings as a nonresident and exclude income sourced to other states to improve accuracy.

Are student employees exempt from FICA in Minnesota?

Some student workers at qualifying institutions may be FICA-exempt under federal rules when enrolled at least half-time. If exempt, remove FICA lines in the calculator for that job to reflect correct take-home.

How are nondiscretionary bonuses factored into overtime in Minnesota?

Nondiscretionary bonuses increase the regular rate for overtime calculations. The calculator should add the bonus into total remuneration when estimating OT premiums to avoid understating pay and taxes.

What if I get paid supplemental wages (bonus/commission) with a separate check?

Employers may use IRS supplemental withholding methods for a separate payment (e.g., flat-rate federal). Minnesota withholding also applies. Enter the supplemental amount as such so the calculator applies the correct methods.

Can I add a flat extra amount for Minnesota withholding?

Yes. On W-4MN you can request an additional dollar amount each paycheck. Add the same extra amount in the calculator to see its impact on your net pay and potential refund.

How do pre-tax transit or parking benefits affect my paycheck?

Qualified commuter benefits reduce federal and Minnesota taxable wages (up to federal limits). Enter them as pre-tax deductions so the calculator lowers FIT/state withholding accordingly.

What happens if my address changes to a different state mid-year?

Update HR, your federal W-4, and W-4MN promptly. The calculator should reflect the new residency from the effective date. Your state returns will reconcile partial-year residency and any Minnesota-source income withheld earlier.

Minnesota Salary Paycheck Calculator