Use our Minnesota Paycheck Calculator to quickly figure out how much you’ll take home after taxes. Just enter your salary, pay frequency, and deductions, and get a detailed breakdown of your gross pay, taxes, and net pay in seconds.
How Your Minnesota Paycheck is Calculated
Your paycheck depends on several key factors, including your income, filing status, and deductions. Here’s the basic formula used to estimate take-home pay:
Gross Pay – (Federal Taxes + State Taxes + Local Taxes + FICA) = Net Pay
Here’s what each term means:
- Gross Pay: The total amount you earn before taxes or deductions.
- Federal Income Tax: A progressive tax applied to all U.S. income earners based on federal tax brackets.
- FICA: Refers to Social Security and Medicare taxes, which fund federal programs for retirees and healthcare.
- State Income Tax: Minnesota’s state income tax is progressive, with rates that increase as income rises.
- Local Taxes: Some Minnesota cities may impose additional local taxes, although they are limited.
A Guide to Minnesota State Payroll Taxes
Minnesota State Income Tax
Minnesota uses a progressive income tax system, meaning the more you earn, the higher your tax rate. The state has four income tax brackets for 2025.
| Taxable Income (Single Filers – 2025) | Tax Rate |
|---|---|
| Up to 31,500 dollars | 5.35% |
| 31,501 – 103,040 dollars | 6.80% |
| 103,041 – 194,700 dollars | 7.85% |
| Over 194,700 dollars | 9.85% |
For married couples filing jointly, the brackets are roughly doubled.
Minnesota also offers a standard deduction, which helps reduce taxable income:
- Single Filers: 15,400 dollars
- Married Filing Jointly: 30,800 dollars
Taxpayers can also claim personal exemptions and certain credits depending on income level and dependents.
State-Specific Programs and Withholdings
In addition to income tax, Minnesota requires participation in a few state-specific programs:
- State Unemployment Insurance (SUI): Paid by employers, though employees indirectly benefit from coverage.
- Paid Family and Medical Leave (PFML): Minnesota plans to launch a state-run paid leave program in 2026; current paychecks are not impacted yet.
- No State Disability Insurance (SDI): Employees do not contribute to an SDI program in Minnesota.
Your paycheck may also reflect voluntary deductions, such as retirement contributions, health insurance, or union dues.
Understanding Federal and FICA Taxes
Federal and FICA taxes apply to all employees nationwide. They fund essential programs such as Social Security and Medicare.
- Social Security Tax: 6.2 percent of wages, up to 168,600 dollars in 2025.
- Medicare Tax: 1.45 percent of all wages. High earners pay an additional 0.9 percent on income above 200,000 dollars (single filers).
Employers match the FICA contributions, so they also pay the same percentages on your behalf.
Local Taxes in Minnesota
Unlike some other states, Minnesota does not impose widespread local income taxes. However, certain cities and counties may apply local sales or special use taxes instead of income-based taxes.
While your state paycheck may not include local income tax withholdings, employees in cities like Minneapolis, Saint Paul, and Duluth should be aware of local levies tied to business or property taxes that can influence overall living costs.
Frequently Asked Questions (FAQs) About Minnesota Paychecks
What is the minimum wage in Minnesota?
The state minimum wage in Minnesota for 2025 is 10 dollars and 85 cents per hour for large employers and 8 dollars and 85 cents per hour for small employers. Some cities, like Minneapolis and Saint Paul, have higher local minimum wages.
How often are paydays in Minnesota?
Employers in Minnesota typically pay employees bi-weekly or semi-monthly. State law requires that employees be paid at least once every 31 days.
What is the Minnesota state tax rate for 2025?
Minnesota’s 2025 tax rates range from 5.35 percent to 9.85 percent, depending on income and filing status.
Are 1099 contractors subject to Minnesota taxes?
Yes. Independent contractors must pay Minnesota state income tax on their earnings and cover self-employment taxes for Social Security and Medicare.
What are the overtime laws in Minnesota?
Employees in Minnesota are entitled to overtime pay at 1.5 times their regular hourly rate for any hours worked beyond 48 in a workweek. Federal law may also apply at the 40-hour threshold, depending on the employer.
Disclaimer
This Minnesota Paycheck Calculator provides estimates for informational purposes only. Actual take-home pay may vary based on individual circumstances, including benefits, credits, or other deductions. Consult a tax professional or financial advisor for personalized tax or payroll advice.