Minnesota Paycheck Calculator 2026

Minnesota Income Tax Overview

Minnesota has a four-bracket progressive income tax with rates of 5.35%, 6.8%, 7.85%, and 9.85% — one of the highest top rates in the country. The issue isn't just the top rate: the 6.8% bracket begins at $33,310 of taxable income for single filers, meaning most full-time workers earning above $50,000 gross pay 6.8% on the bulk of their income. Minnesota's standard deduction of $15,300 is fairly generous, sheltering more income than the national average, but the aggressive bracket progression still results in a high effective rate for middle-income earners. No Minnesota city charges a local income tax on wages — Minneapolis and St. Paul workers pay the statewide progressive rate only.

Here's what a single Minnesota filer keeps in 2026. On a $50,000 salary, take-home is approximately $40,288 per year ($3,357/month) after federal, FICA, and state taxes. At $80,000, take-home is approximately $60,661 ($5,055/month), with the state taking $3,917. At $100,000, you keep about $73,371 ($6,114/month), with $5,277 going to Minnesota. At $150,000, take-home is approximately $104,240 ($8,687/month), with the state taking $8,942. The jump from $80,000 to $100,000 is particularly expensive — those extra $20,000 largely fall in the 7.85% bracket.

Compared to neighboring Iowa (3.8% flat), a Minnesota worker at $80,000 takes home approximately $1,489 less per year. Against Wisconsin (top rate 5.3% for earners in the $80K range), Minnesota workers pay roughly $2,200 more per year at $80,000. Against North Dakota (which has dramatically lower rates), a Minnesota worker at $80,000 takes home about $3,300 less per year. Against South Dakota (no income tax), the gap is the full $3,917 in state tax. Minnesota's tax revenue funds a notably robust public services infrastructure compared to its neighbors.

Watch out: Minnesota is one of the few states that taxes Social Security benefits at the state level — though a partial exemption exists for lower and moderate incomes. For retirees receiving Social Security, the MN exemption phases out at $78,000 AGI for single filers, meaning higher-income retirees owe Minnesota income tax on their Social Security income. This is a significant consideration if you're evaluating Minnesota for retirement. For workers, this doesn't apply yet — but it's a factor in long-term residency planning, since some neighboring states (Iowa, Wisconsin) also partially tax Social Security while others (Illinois, Michigan) exempt it entirely.