Estimate your take-home pay in Minnesota. The state levies a graduated income tax that tops out at 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.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the Minnesota Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
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's Graduated Brackets 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.
How Minnesota's Income Tax Compares Nationally
Minnesota uses a graduated income tax — 5.35% to 9.85% across 4 brackets — so higher slices of income are taxed at higher rates rather than one flat percentage.
Its 9.85% top rate is the 7th-highest nationally among the 42 states and jurisdictions that tax wages, above the median top rate of 5.54%.
For comparison, nearby states line up like this: Iowa (top rate 3.8%); North Dakota (top rate 1.95%); South Dakota (no income tax); Wisconsin (top rate 7.65%).