minnesota paycheck calculator
Looking to figure out your take-home pay in Minnesota? You're in the right place. Our free calculator helps Minnesota residents understand exactly what they'll earn after taxes. Minnesota has a state income tax rate of 5.35% - 9.85%.
About the minnesota paycheck calculator
The Minnesota paycheck calculator reveals graduated income tax reaching 9.85% on top earners - among the nation's highest state rates. The calculator shows that Minneapolis-St. Paul (Twin Cities) drives diverse economy through healthcare, technology, and corporate headquarters. Using the Minnesota paycheck calculator, you'll see that Target, Best Buy, and major healthcare systems provide strong employment. The calculator demonstrates that the high tax burden gets offset somewhat by quality services and good schools, though take-home pay suffers compared to lower-tax states.
Tax Information
Minnesota applies graduated income tax from 5.35% to 9.85% - among America's highest rates. Federal income tax (10-37% progressive) layers on top. Social Security withholding takes 6.2% of wages up to $168,600. Medicare requires 1.45% of all income, with high earners paying an additional 0.9% above $200,000.
Understanding Your Minnesota Paycheck
When you get paid in Minnesota, several deductions come out before you see your take-home pay. Our tool breaks down all these deductions clearly. Here's what it calculates:
- Federal Income Tax: This depends on your income and filing status, following the IRS tax brackets that apply nationwide
- State Income Tax: Minnesota charges 5.35% - 9.85% on your income
- Social Security Tax: 6.2% of your gross wages (capped at the annual wage base)
- Medicare Tax: 1.45% of all gross wages
- Additional Medicare Tax: 0.9% on earnings above $200,000 for single filers
How to Use This Calculator
It's pretty straightforward. Just follow these steps:
- Enter your gross pay (what you earn before any deductions)
- Pick how often you get paid - weekly, bi-weekly, semi-monthly, monthly, or annually
- Select Minnesota as your state
- Choose your filing status (single, married, etc.)
- Hit calculate and see your results
You'll see a detailed breakdown showing exactly where your money goes. Get instant, accurate results with our free tool.
How Minnesota Compares
Tax Comparison
Minnesota charges state income tax at 5.35% - 9.85%. How does that stack up against other states? Well, it depends on your income level and what you value. States without income tax might seem appealing, but they often make up for it with higher property or sales taxes.
| State | Income Tax Rate | Comparison |
|---|---|---|
| Minnesota | 5.35% - 9.85% | Your State |
| Michigan | 4.25% | Has income tax |
| Colorado | 4.4% | Has income tax |
| Illinois | 4.95% | Has income tax |
What Makes Minnesota Different?
Every state with income tax handles it differently. Minnesota's approach to taxation affects how much you take home. Some states use a flat rate, while others have progressive brackets like the federal system. Understanding this helps you plan better, especially if you're considering a move or comparing job offers.
Why Use Our Minnesota Paycheck Calculator?
- Accurate for Minnesota: Uses current tax rates specific to your state
- Easy to understand: No confusing jargon or complicated forms
- Detailed breakdown: See exactly how much goes to each tax
- Free to use: No signup required, no hidden fees
- Updated regularly: We keep up with tax law changes so you don't have to
Living and Working in Minnesota
Economic Overview
Job Market
Minnesota's economy balances major corporations, healthcare, technology, and manufacturing. Minneapolis-St. Paul hosts Target headquarters, Best Buy, UnitedHealth Group, 3M, and numerous other Fortune 500 companies. Mayo Clinic in Rochester employs thousands in medical careers. Technology companies increasingly choose the Twin Cities. Manufacturing remains significant statewide. While state taxes claim substantial portions of income, a $90,000 position in Minneapolis delivers comfortable lifestyle thanks to moderate housing costs, excellent schools, and strong quality of life that makes Minnesota attractive despite the tax burden.
Cost of Living
Minnesota offers moderate living costs that help offset higher taxes. Minneapolis-St. Paul provides metropolitan amenities with housing prices well below coastal markets - quality homes in good suburbs often sell for $300,000-400,000. Rochester and Duluth offer better value. Property taxes can be substantial, funding strong schools and services. Heating costs run high during severe winters. Groceries and services cost near national averages. Despite high state taxes, your net income typically provides comfortable lifestyle thanks to moderate housing costs and excellent public services that reduce other expenses.
Frequently Asked Questions
How accurate is this calculator?
Our calculator is very accurate for most people. We use the current federal and Minnesota state tax rates. However, everyone's situation is unique - things like additional withholdings, pre-tax deductions (401k, health insurance), or local taxes can affect your actual paycheck. Think of this as a solid estimate rather than an exact figure.
Why is my actual paycheck different?
A few reasons. Your employer might withhold extra for benefits, retirement contributions, or you might have requested additional withholding. Some Minnesota localities also have their own taxes. Check your pay stub for the full breakdown.
Should I adjust my withholding?
That depends. If you're getting a huge refund every year, you're basically giving the government an interest-free loan. If you owe a lot at tax time, you might want to withhold more. The sweet spot is owing or getting back a small amount. Use this calculator to see if your current withholding makes sense.