A Minnesota worker in 2026 can expect roughly 20% to 30% of each paycheck to go to mandatory taxes and premiums, depending on income and filing status. That total is made up of five separate deductions: Social Security, Medicare, federal income tax, Minnesota state income tax, and the state’s new Paid Family and Medical Leave premium. Two of those are fixed percentages. The other three depend on what you earn and what you put on your withholding forms.
Social Security and Medicare
These two federal payroll taxes come out at fixed rates on every check. Social Security is 6.2% of gross wages up to $184,500 in 2026. Once your year-to-date earnings cross that cap, Social Security withholding stops for the rest of the calendar year, and later paychecks get a little bigger.1Social Security Administration. What Is the Current Maximum Amount of Taxable Earnings for Social Security
Medicare is 1.45% of all wages with no cap. Earn more than $200,000 in a year and your employer must withhold an additional 0.9% on wages above that line, bringing the Medicare rate to 2.35% on the higher earnings.2Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
Together the base rate is 7.65%. Your W-4 elections have no effect on either tax.
Federal Income Tax
Federal income tax is the most variable line on your pay stub because your employer calculates it from what you put on IRS Form W-4.3Internal Revenue Service. Form W-4 2026 Employee’s Withholding Certificate Filing status, dependent credits, and any extra dollar amount you enter all feed into the IRS withholding tables.
The system is progressive, so different chunks of income are taxed at different rates. For a single filer in 2026:4Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
- 10% on income up to $12,400
- 12% on $12,401 to $50,400
- 22% on $50,401 to $105,700
- 24% on $105,701 to $201,775
- 32% on $201,776 to $256,225
- 35% on $256,226 to $640,600
- 37% above $640,600
Married couples filing jointly get wider brackets. The 10% band runs to $24,800, the 12% band runs to $100,800, and the 37% rate doesn’t start until income tops $768,700.4Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
Withholding is an estimate of what you’ll owe at filing time, not a precise calculation. Claim fewer credits or add a flat dollar amount on Line 4(c) and each check has more withheld. Claim dependents or additional deductions and each check has less.
Minnesota State Income Tax
Minnesota’s own income tax is also progressive, with four brackets running from 5.35% to 9.85%. The 2026 thresholds for single filers:5Minnesota Department of Revenue. Minnesota Income Tax Brackets, Standard Deduction and Dependent Exemption Amounts for Tax Year 2026
- 5.35% up to $33,310
- 6.80% on $33,311 to $109,430
- 7.85% on $109,431 to $203,150
- 9.85% above $203,150
Married filing jointly filers get wider brackets: 5.35% runs to $48,700, 6.80% to $193,480, 7.85% to $337,930, and 9.85% applies above that.5Minnesota Department of Revenue. Minnesota Income Tax Brackets, Standard Deduction and Dependent Exemption Amounts for Tax Year 2026
Here’s the part that trips people up. Your federal W-4 does not control Minnesota withholding. You have to fill out a separate Form W-4MN to set your state allowances and filing status.6Minnesota Department of Revenue. Form W-4MN Skip it and your employer must withhold as if you’re single with zero allowances, which is the maximum rate.7Minnesota Department of Revenue. 2025 W-4MN, Minnesota Withholding Allowance/Exemption Certificate If you’re married with dependents, that’s real money leaving your check for no reason. Filling out the W-4MN is one of the easiest ways to line up your take-home pay with what you actually owe.
No Minnesota city or county imposes a local income tax on wages, so state withholding is the only state-level income tax on your stub.
Paid Family and Medical Leave Premium
Starting January 1, 2026, a new deduction shows up on Minnesota pay stubs: the Paid Family and Medical Leave premium. The program is funded jointly by employers and employees.8Minnesota Paid Leave. How Paid Leave Works
The total 2026 premium rate is 0.88% of wages. Employers must pay at least half, so your share is capped at 0.44%. Some employers cover more than their required half, which would lower your deduction further. The premium applies to wages up to a $185,000 taxable cap; earnings above that aren’t subject to the premium.8Minnesota Paid Leave. How Paid Leave Works
What This Looks Like on a $60,000 Salary
For a single Minnesota worker earning $60,000 in 2026 with no pre-tax deductions, paid biweekly:
- Social Security at 6.2%: about $3,720 a year, or $143 per check
- Medicare at 1.45%: about $870 a year, or $33 per check
- PFML at 0.44%: about $264 a year, or $10 per check
- Federal income tax: roughly $5,000 to $5,500 a year, or $192 to $212 per check depending on W-4 elections
- Minnesota state income tax: roughly $2,800 to $3,200 a year, or $108 to $123 per check depending on W-4MN elections
Total deductions land somewhere around $12,650 to $13,550 for the year, or about 21% to 23% of gross. A worker earning $100,000 with the same filing status pays a higher effective rate because more income falls into higher federal and state brackets. FICA and PFML percentages don’t change until you hit their respective caps.
How Pre-Tax Deductions Change the Math
Contributions to a 401(k), employer-sponsored health insurance, or an HSA typically come out of your pay before federal and state income tax is calculated. Every dollar you put in reduces the wage base your employer uses for withholding. In 2026 you can defer up to $24,500 into a 401(k), with an $8,000 catch-up if you’re 50 or older, or $11,250 if you’re between 60 and 63.9Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500 HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage.10Internal Revenue Service. Expanded Availability of Health Savings Accounts
One important nuance. Pre-tax 401(k) and health insurance deductions reduce your income for federal and Minnesota income tax, but not for Social Security or Medicare. FICA is calculated on gross pay before those contributions come out. The PFML premium works the same way; it’s based on total wages, not taxable income.
The savings are real. If you earn $60,000 and contribute $6,000 to a 401(k), your employer figures federal and state withholding on $54,000. At a combined marginal rate of about 18% to 19% (federal 12% plus Minnesota 6.8%), the contribution cuts roughly $1,100 from your withholding over the year.
Bonuses and Other Supplemental Pay
Bonuses, commissions, and other supplemental payments are often withheld at flat rates instead of your normal bracket-based rate. Federally, your employer can withhold a flat 22% on supplemental wages up to $1 million in a calendar year, and 37% on anything above that.11Internal Revenue Service. Publication 15 (2026), (Circular E), Employer’s Tax Guide
Minnesota’s supplemental rate is 6.25%, regardless of what you put on your W-4MN.12Minnesota Department of Revenue. 2026 Minnesota Withholding Tax Instructions and Tables Social Security and Medicare still apply at their normal rates. So a $5,000 bonus could see roughly $310 for FICA, $1,100 for federal tax, and $312.50 for Minnesota tax before it hits your bank account.
If You Live in Michigan or North Dakota but Work in Minnesota
Minnesota has reciprocity agreements with Michigan and North Dakota. If you live in one of those states and work in Minnesota, only your home state taxes your wages, and you can skip Minnesota withholding entirely.13Minnesota Department of Revenue. Reciprocity for Individuals
To use reciprocity you have to file Form MWR with your Minnesota employer each year, by the later of February 28 or 30 days after you start work. You also have to return to your home state at least once a month. Miss the deadline or fall short of the residency requirement and your employer must withhold Minnesota tax as if you were a resident, leaving you to file a Minnesota return to claim the money back.14Minnesota Department of Revenue. Form MWR, Reciprocity Exemption/Affidavit of Residency for Tax