Minnesota Income Tax Withholding and Payroll Information

Compliance with state taxes is required for every employer. Learn about relevant rates, allowances, and automation below.

December, 17th 2024

Each state sets unique income tax withholding rules. Below are the relevant withholding instructions and tax tables for Minnesota in 2025.

Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.

Alternatively, employers can automatically calculate payroll withholding information using ezPaycheck.

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Minnesota Tax Information

General Information
State Abbreviation	MN
Acceptable Exemption Form	W-4
Basis For Withholding	State Allowances and Annualized Wage Amount
Acceptable Exemption Data	S, M / Number of Exemptions
TSP Deferred	Yes
Additional Information	None provided

How to Calculate Minnesota Taxes

Determine the employee’s total wages for one payroll period. For non-periodic distributions (as per W-4MNP), use that amount.
Annualize the wages by multiplying the payroll period wages by the number of pay periods per year:
- Daily (260 working days/year): Multiply by 260
- Weekly (52 weeks/year): Multiply by 52
- Biweekly (every two weeks): Multiply by 26
- Semimonthly: Multiply by 24
- Monthly: Multiply by 12
- Annually: Multiply by 1
Multiply the number of the employee’s withholding allowances by $5,200.
Subtract the result from Step 3 from the annualized wages from Step 2. If zero or less, no tax is withheld.
Use the result from Step 4 to determine the annual tax. Apply the appropriate tax table (Married or Single) from the Tax Chart section below to find the preliminary annual tax amount.
Divide the annual tax amount determined in Step 5 by the number of pay periods per year. Round to the nearest dollar. This is the Minnesota tax to withhold per pay period.

Following these steps ensures accurate Minnesota tax withholding. If you prefer an automated solution, consider using ezPaycheck.

Deductions, Allowances, and Exemptions

Minnesota withholding is influenced by the number of allowances claimed by the employee. Each allowance is worth $5,200 annually.

No separate standard deduction table is provided within these instructions. Instead, the calculation is driven primarily by allowances and the progressive tax rates.

Tax Withholding Tables

Apply the annualized taxable income (after subtracting allowances) to the appropriate table based on the employee’s filing status. If the employee is married, use the married table; if single, use the single table.

Married (M) Filing Status

Over	But Not Over	Tax	Rate	Of Excess Over
$0	$14,300	$0	0%	$0
$14,300	$61,920	$0	5.35%	$14,300
$61,920	$203,480	$2,547.67	6.8%	$61,920
$203,480	$344,710	$12,173.75	7.85%	$203,480
$344,710	and over	$23,260.31	9.85%	$344,710

Single (S) Filing Status

Over	But Not Over	Tax	Rate	Of Excess Over
$0	$4,550	$0	0%	$0
$4,550	$37,120	$0	5.35%	$4,550
$37,120	$111,540	$1,742.495	6.8%	$37,120
$111,540	$203,180	$6,803.055	7.85%	$111,540
$203,180	and over	$13,996.80	9.85%	$203,180

After determining the annual Minnesota tax from the tables, divide by the number of pay periods (from Step 2) to get the per-pay-period withholding.

Automate Payroll with ezPaycheck

ezPaycheck is simple, reliable, and affordable payroll software designed for small businesses. It can help you automatically calculate Minnesota state taxes, print paychecks, generate reports, and prepare tax forms — no internet connection needed.

Try it free for 30 days with no obligation and no credit card needed. ezPaycheck is available for both Windows and Mac computers.

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