Quick Answer
Minnesota state income tax ranges from 5.35% to 9.85% depending on income. A single person earning $60,000 pays about $3,186 in Minnesota state tax annually (5.3% effective rate), or roughly $122 per biweekly paycheck. High earners can pay nearly 10% of their income.
Best Answer
Sarah Chen, Payroll Tax Analyst
Traditional W-2 employees living and working in Minnesota
Minnesota state income tax rates for 2026
Minnesota uses a progressive tax system with four tax brackets. The rates range from 5.35% on the first dollars of income up to 9.85% on high incomes. Here are the 2026 brackets for single filers:
*Note: These brackets are adjusted annually for inflation.*
Example: Minnesota tax calculation for $60,000 salary
Let's calculate the Minnesota state tax for a single person earning $60,000:
Tax calculation breakdown:
How Minnesota compares to other states
Minnesota is consistently ranked among the highest-tax states in the U.S. Here's how different income levels fare:
Minnesota-specific deductions and credits
Minnesota offers several deductions that can reduce your tax burden:
Understanding your Minnesota withholding
Your employer calculates Minnesota withholding using:
1. Your federal adjusted gross income
2. Minnesota-specific adjustments and deductions
3. The progressive rate structure
4. Your withholding allowances on Form M-4
Pro tip: If you're consistently getting large refunds or owing money, adjust your M-4 withholding allowances. Minnesota's high rates mean small changes in allowances can significantly impact your paycheck.
What you should do
Minnesota's progressive system means your tax burden increases significantly with income. Use our calculator to see your exact take-home pay and consider maximizing pre-tax deductions like 401(k) contributions to reduce your taxable income and move into lower brackets.
If you're considering a job offer, remember that Minnesota's high state tax rate can substantially reduce your take-home pay compared to no-tax states.
[Calculate your Minnesota take-home pay →](paycheck-calculator)
Key takeaway: Minnesota state tax ranges from 5.35% to 9.85%, making it one of the highest-tax states with middle-income earners typically paying 6-7% effective rates.
Key Takeaway: Minnesota state tax ranges from 5.35% to 9.85%, making it one of the highest-tax states with middle-income earners typically paying 6-7% effective rates.
Minnesota state income tax brackets and effective rates for 2026
| Annual Income | Minnesota Tax | Effective Rate | Monthly Deduction |
|---|---|---|---|
| $40,000 | $1,945 | 4.86% | $162 |
| $60,000 | $3,644 | 6.07% | $304 |
| $80,000 | $5,543 | 6.93% | $462 |
| $120,000 | $9,971 | 8.31% | $831 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
People who moved to or from Minnesota and need to understand the tax impact
Minnesota tax impact for new residents
Moving to Minnesota often means a significant increase in state tax burden. If you're coming from a no-tax state like Texas, Florida, or South Dakota, expect your take-home pay to decrease substantially.
Example shock: A $75,000 salary results in about $4,750 in Minnesota state tax — that's nearly $400 less in monthly take-home pay compared to a no-tax state.
Part-year resident considerations
If you moved to Minnesota mid-year, you'll file as a part-year resident and pay Minnesota tax only on income earned as a resident. However, you may face double taxation issues if your previous state also has income tax.
Moving timeline matters:
What you should do
Before accepting a job in Minnesota, calculate the true take-home difference. The state's high tax rates can offset salary increases, especially in the $60,000-$150,000 range where you'll face 6.80-7.85% rates.
Key takeaway: Moving to Minnesota can reduce take-home pay by $300-500+ monthly compared to no-tax states due to rates up to 9.85%.
Key Takeaway: Moving to Minnesota can reduce take-home pay by $300-500+ monthly compared to no-tax states due to rates up to 9.85%.
Sarah Chen, Payroll Tax Analyst
Remote workers dealing with Minnesota tax obligations while working for out-of-state companies
Minnesota tax for remote workers
As a Minnesota resident working remotely, you owe Minnesota state tax on all income regardless of where your employer is located. This can create complex withholding situations, especially with Minnesota's high progressive rates.
Common scenarios:
Managing high-rate withholding
Minnesota's rates up to 9.85% mean underpayment penalties can be substantial. If your employer can't withhold Minnesota tax:
Quarterly payment example: $80,000 income × ~7% effective rate = $5,600 ÷ 4 = $1,400 quarterly
Reciprocity agreements
Minnesota has reciprocity agreements with Michigan, North Dakota, and Wisconsin. If you live in Minnesota but work in these states, you can avoid double taxation by filing exemption forms.
What you should do
Work with your employer's payroll team to establish proper Minnesota withholding. If impossible, set up automatic quarterly transfers to a tax savings account. Minnesota's high rates make underpayment costly.
Key takeaway: Minnesota remote workers face complex withholding challenges with rates up to 9.85%, often requiring quarterly estimated payments to avoid penalties.
Key Takeaway: Minnesota remote workers face complex withholding challenges with rates up to 9.85%, often requiring quarterly estimated payments to avoid penalties.
Sources
- Minnesota Department of Revenue Tax Information — Official Minnesota state income tax rates and brackets
- IRS Publication 505 — Tax Withholding and Estimated Tax guidance
Related Questions
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.