Minnesota Income Tax Calculator

How to Use This Minnesota Income Tax Calculator

This Minnesota income tax calculator estimates your annual state and federal tax liability for 2025 and 2026. Enter your gross wages, filing status, and any pre-tax deductions above. Minnesota applies four progressive rates (5.35%–9.85%) to taxable income after subtracting the state standard deduction ($14,575 single / $29,150 MFJ for 2026).

For a per-paycheck view of withholding and take-home pay, use the Minnesota paycheck calculator. To compare Minnesota against other states side by side, use the general income tax calculator.

How Minnesota's Progressive Tax Brackets Work

Minnesota uses a four-bracket progressive system — only the income within each bracket is taxed at that bracket's rate. Earning more does not retroactively increase tax on lower-tier income. The brackets for single filers in 2026:

• 5.35% — on MN taxable income from $0 to $33,310
• 6.80% — on MN taxable income from $33,311 to $109,430
• 7.85% — on MN taxable income from $109,431 to $203,150
• 9.85% — on MN taxable income above $203,150

Minnesota's 9.85% top rate is the fourth-highest in the United States. It applies to single filers at $203,150 — a relatively low threshold compared to states like California where the high top rate kicks in above $1 million.

Minnesota Standard Deduction and Key Rules

Minnesota's standard deduction closely tracks the federal amount. For 2026:$14,575 for single filers and $29,150 for married filing jointly. Minnesota does not provide a personal exemption for most wage earners.

Notable Minnesota-specific rules that affect taxable income:

• Social Security: Minnesota is one of only about 11 states that taxes Social Security benefits. However, a subtraction is available for lower-income filers (provisional income thresholds approximately $75,000 single / $95,000 MFJ in 2026).
• 401(k) contributions: Fully recognized as pre-tax, reducing MN taxable income the same as federal AGI. At the 6.8%–7.85% bracket, this saves $680–$785 per $10,000 contributed in MN state tax alone.
• Minnesota 529 deduction: Contributions to a Minnesota College Savings Plan (529) are deductible up to $3,000 (single) / $6,000 (MFJ) annually.

FICA Taxes — Social Security and Medicare

FICA taxes are federal and apply to every Minnesota paycheck:

• Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you hit the wage base.
• Medicare: 1.45% on all wages with no cap.
• Additional Medicare: 0.9% on wages above $200,000 (single) or $250,000 (married jointly) — employee only, no employer match.

Step-by-Step Example — $120,000 Minnesota Single Filer (2026)

1. Gross wages: $120,000
2. Federal standard deduction: −$16,100 → federal taxable income: $103,900
3. Federal income tax (10% + 12% + 22% brackets): ≈ $17,994
4. FICA: $120,000 × 7.65% = $9,180
5. MN standard deduction: −$14,575 → MN taxable income: $105,425
6. MN income tax: $1,782 (5.35% × $33,310) + $4,904 (6.8% × $72,115) = $6,686
7. Total taxes: $17,994 + $9,180 + $6,686 = $33,860
8. Annual net income: $120,000 − $33,860 = $86,140

Retirement Income and Minnesota Taxes

Minnesota is one of a small number of states that taxes Social Security benefits, making retirement income planning especially important for Minnesota residents:

• Social Security: Minnesota taxes Social Security benefits above certain income thresholds. However, Minnesota provides a Social Security subtraction for lower- and middle-income retirees: single filers with provisional income below approximately $41,385 may subtract some or all of their federal taxable Social Security from Minnesota taxable income. For married filing jointly, the threshold is approximately $53,395. Above these thresholds, the subtraction phases out and Social Security becomes taxable at Minnesota rates (5.35%–9.85%). This is one of the most significant retirement income tax issues for Minnesota retirees.
• Military Retirement: Minnesota fully exempts military retirement pay from state income tax starting in 2023. Retired members of the US Armed Forces pay no Minnesota income tax on military pension income.
• Public Employee Pensions (PERA, TRA, MSRS): Minnesota public employee pensions (from PERA, TRA, MSRS, and similar plans) are taxable at regular Minnesota rates — unlike some states that provide a pension exemption. Minnesota retirees on public pensions may owe significant state income tax.
• Traditional 401(k) and IRA Distributions: Fully taxable in Minnesota at the regular progressive rates (5.35%–9.85%). Minnesota does not provide a special exemption or pension exclusion for private retirement account distributions.
• Railroad Retirement Benefits: Tier 1 railroad retirement benefits (equivalent to Social Security) are treated the same as Social Security for Minnesota purposes. Tier 2 benefits follow the pension rules.

Minnesota Form M1 is due April 15 (same as the federal deadline). Retirees with Social Security income should calculate whether the Minnesota Social Security subtraction reduces or eliminates their Minnesota tax on those benefits.

Minnesota Tax Credits and Deductions

Minnesota offers several state-specific credits that can reduce annual tax liability:

Minnesota Working Family Credit

Minnesota's refundable Working Family Creditis the state's equivalent of the federal EITC. For 2026, the maximum credit is approximately $720 for qualifying low- and moderate-income workers. Unlike many states that simply calculate a percentage of the federal EITC, Minnesota computes its own Working Family Credit using a separate formula. The credit is fully refundable — it can generate a refund even if you owe no Minnesota income tax.

Minnesota Child and Dependent Care Credit

Minnesota provides a refundable Child and Dependent Care Credit of up to $1,050 per qualifying child (up to $2,100 for two or more children). This credit supplements the federal child and dependent care credit and is particularly valuable for working parents with childcare expenses.

Minnesota K-12 Education Credit

Minnesota offers a refundable K-12 Education Credit of up to $1,000 per qualifying child for education-related expenses (tutoring, educational materials, software, etc.). Income limits apply — the credit phases out at higher income levels.

Minnesota 529 Deduction

Minnesota allows a deduction of up to $3,000 (single) / $6,000 (MFJ)per year for contributions to a Minnesota College Savings Plan (Minnesota 529 plan). At Minnesota's 6.8% bracket, a $3,000 deduction saves $204 in state tax annually.

Minnesota Does Not Conform to Federal Standard Deduction

Minnesota sets its own standard deduction that is slightly below the federal amount: approximately $14,575 (single) / $28,790 (MFJ) for 2026 — compared to $16,100 (single) / $32,200 (MFJ) at the federal level. This means Minnesota taxes a slightly larger portion of income than federal deductions would suggest.

How to Reduce Your Minnesota Annual Tax Liability

• Maximize 401(k) contributions — the 2026 limit is $23,500 ($31,000 if 50+). At a combined 22% federal + 6.8% MN rate, every $1,000 contributed saves $288 in taxes. At the 7.85% bracket the saving is $298/thousand.
• Contribute to an HSA — $4,300 (self-only) or $8,550 (family) in 2026. Reduces both federal and Minnesota taxable income; FICA savings apply through payroll.
• Use the Minnesota 529 deduction — up to $3,000 (single) / $6,000 (MFJ) deductible annually for contributions to the Minnesota College Savings Plan.
• Claim the Working Families Credit— Minnesota's refundable credit worth up to 50% of the federal EITC for eligible low- and moderate-income workers.
• File Form W-4MN— Minnesota's withholding form. Keep it updated for accurate payroll withholding; the federal W-4 does not control Minnesota state withholding.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Minnesota tax brackets, standard deduction amounts, and credits can change each year. Federal brackets, FICA wage bases, and deduction amounts also change annually. Results reflect 2025 and 2026 tax-year parameters. Consult a qualified tax professional or CPA for guidance on your specific situation.