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2026Minnesota State Income Tax Withholding: Rates & Payroll

Compliance with state taxes is required for every employer. Learn about Minnesota's rates, deduction methods, and how to calculate state tax withholding below.

Last updated: December 23rd, 2025

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Each state has unique income tax withholding rules. Below are Minnesota's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.

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 by using ezPaycheck.

Minnesota Tax Information

General Information
State AbbreviationMN
State Tax Withholding State Code27
Acceptable Exemption FormW-4
Basis For WithholdingState Allowances and Annualized Wage Amount
Acceptable Exemption DataS, M / Number of Exemptions
TSP DeferredYes
Special CodingNone
Additional InformationNone provided
Official State Tax WebsiteVisit Official Website

How Allowances Work in This State

Minnesota's Form W-4MN uses a worksheet to calculate state withholding allowances. Employees start with allowances for themselves and spouse (if one spouse doesn't work) similar to federal logic (e.g., married one-earner can take a higher allowance). They then add allowances for dependents, which in MN are tied to the state dependent credit (the form will ask for number of qualifying children under 17 and other dependents, assigning a value to each). Minnesota does not provide distinct allowances for age or blindness on the W-4MN - those factors are built into tax credits outside of withholding.

Allowance Breakdown

ComponentAllowancesNotes
Yourself1 allowanceBase allowance
Spouse1 allowanceIf one spouse doesn't work (married one-earner)
DependentsCalculated allowancesTied to state dependent credit (qualifying children under 17 and other dependents)

Total Allowances Formula

Total Allowances = Yourself + Spouse (if applicable) + Dependent-Based Allowances (from worksheet)

Special Notes

If both spouses work, Minnesota instructs dividing allowances between them to avoid under-withholding. Age and blindness factors are built into tax credits outside of withholding.

For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.

  1. 1

    Determine the employee's total wages for one payroll period. For non-periodic distributions (as per W-4MNP), use that amount.

  2. 2

    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.

  3. 3

    Multiply the number of the employee's withholding allowances by $5,300.

    Allowance Amount = $5,300 × Number of Allowances

  4. 4

    Subtract the result from Step 3 from the annualized wages from Step 2. If zero or less, no tax is withheld.

  5. 5

    Use the result from Step 4 to determine the annual tax. Apply the appropriate tax table (Married or Single) from the Tax Chart section to find the preliminary annual tax amount.

  6. 6

    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.

Want to calculate in an easier way? Learn how to calculate Minnesota taxes via ezPaycheck below.

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Exemptions and Allowances

Annual Withholding Allowance Table - Single
Withholding AllowanceAnnual Amount
1$5,300

Formula: $5,300 × Number of Allowances

Allowance amount per allowance.

If Taxable Income IsTax Withholding
OverBut Not OverBase+RateOf Excess Over
$0$4,700$0+0.00%$0
$4,700$38,010$0+5.35%$4,700
$38,010$114,130$1,782+6.80%$38,010
$114,130$207,850$6,958+7.85%$114,130
$207,850and over$14,315+9.85%$207,850
If Taxable Income IsTax Withholding
OverBut Not OverBase+RateOf Excess Over
$0$14,700$0+0.00%$0
$14,700$63,400$0+5.35%$14,700
$63,400$208,180$2,605+6.80%$63,400
$208,180$352,630$12,450+7.85%$208,180
$352,630and over$23,790+9.85%$352,630
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Automate Payroll with ezPaycheck

ezPaycheck simplifies payroll calculations, including Minnesota's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.

Found a Discrepancy or Mistake?

We strive to provide accurate and up-to-date Minnesota state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.

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