Minnesota pay stubs: state taxes and withholding
Minnesota paycheck withholding: graduated state income tax, the new Paid Leave premium that began in 2026, and the federal payroll taxes.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Minnesota taxes wages with graduated rates, and its brackets are adjusted for inflation each year. Employees complete Form W-4MN, Minnesota's withholding allowance certificate, when they start work and whenever their situation changes. Employers use the Department of Revenue's current-year withholding tables.
Minnesota Paid Leave: new in 2026
The biggest change to Minnesota paychecks in years started on January 1, 2026, when premiums for the state's Paid Leave program began. Key points:
- The premium rate for 2026 is 0.88% of wages, covering medical leave and family leave.
- Employers must pay at least half. They may deduct the rest, up to 0.44%, from employee pay, or choose to cover more of it.
- Qualifying small employers can pay a lower rate. Check eligibility with the program.
Rates and calculators are on the Minnesota Paid Leave website. If you keep stubs from 2025, you'll notice this line appearing for the first time in 2026.
Local taxes
Minnesota has no city or county income taxes, so state tax is the only income tax line at the state level. An employee in Minneapolis and one in a small town are withheld the same way for the same pay.
Federal withholding still applies
- Federal income tax, calculated from the employee's Form W-4
- Social Security at 6.2% until wages reach the annual Social Security wage base
- Medicare at 1.45%, with an additional 0.9% on wages above $200,000
Creating a Minnesota pay stub with PayStubNest
Head to the pay stub tool, enter the hours and rate or the salary, and choose Minnesota. The calculator applies federal and state income tax withholding and keeps year-to-date totals in sync from one period to the next. Add the Paid Leave premium as its own deduction at the share you've chosen to pass on. The exact figures on each stub depend on the pay amount, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates all of it automatically. You can preview free and pay only for downloads.
Record-keeping tip
Write down how you split the Paid Leave premium (for example, "employee pays 0.44%") and apply it the same way to everyone it covers. A written policy makes it easy to explain the deduction if an employee asks. See our FAQ for help with custom deduction lines.