Estimate your take-home pay in Minnesota for 2026. The state levies income tax with a top rate of 9.85% (5.35% to 9.85% across 4 brackets). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Minnesota Tax Snapshot
- State Income Tax
- 9.85% top rate
- Sales Tax (state + local avg)
- 7.53%
- Avg Property Tax Rate
- 1.08%
- Median Home Value
- $311,100
- State Minimum Wage
- $11.13/hr
Did You Know?
Minnesota has one of the highest top income tax rates and exempts clothing from sales tax.
How Minnesota Taxes Affect Your Paycheck
When you earn a paycheck in Minnesota, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 5.35% to 9.85% across 4 brackets. The state minimum wage is $11.13 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 1.08% property tax rate on homes valued around $311,100.
Minnesota also levies a combined state and average local sales tax of 7.53%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.