Minnesota has one of the highest state income taxes in the Midwest — a progressive 5.35% to 9.85%. See exactly what you take home after all federal and state taxes.
Minnesota's income tax starts at 5.35% — higher than the flat rate of Ohio, Indiana, Michigan, Illinois, Iowa, or North Dakota. The 9.85% top rate applies to income above $183,340 (single) or $304,970 (married). Minnesota uses its own standard deduction (~$14,575 single / ~$29,150 married), which is similar to the federal deduction, before applying the progressive brackets.
Minnesota's lowest income tax bracket — 5.35% — is higher than the top rate of Ohio (3.99%), Indiana (3.05%), Michigan (4.25%), North Dakota (2.5%), or Iowa (3.8%). Before a single dollar is taxed at a high rate, Minnesotans are already paying more than most Midwesterners pay at their maximum. This is the feature of Minnesota taxes that surprises people most: it's not just the top rate, it's that the floor is higher too.
Minnesota partially taxes Social Security benefits — one of only a handful of states that does. Federal law already taxes up to 85% of Social Security income for higher earners, and Minnesota adds state income tax on a portion of that. The state does provide a subtraction for Social Security income based on income thresholds, but retirees with other income sources can still face meaningful Minnesota tax on their Social Security checks. This is a key difference from states like Pennsylvania, Wisconsin, and Illinois, which fully exempt Social Security from state income tax.
The Minnesota-Wisconsin border debate is real. Workers who live in Wisconsin and commute to Minnesota (or vice versa) face complex reciprocity rules. Minnesota and Wisconsin have a reciprocity agreement that generally allows workers to pay income tax only in their state of residence — which is a significant planning tool for commuters in the Twin Cities metro who can live across the St. Croix River in Wisconsin and pay Wisconsin's rates instead of Minnesota's higher ones.
Why do people stay? Minnesota's high taxes fund strong public infrastructure — consistently top-ranked public schools, a robust state park system, well-maintained roads, and major medical institutions (Mayo Clinic employs over 40,000 in Rochester alone). For workers who value those services and live in the Twin Cities metro, the calculus often comes out different than the raw rate comparison suggests.
| Income (Single) | Income (Married) | Rate |
|---|---|---|
| $0 – $30,070 | $0 – $43,950 | 5.35% |
| $30,071 – $98,760 | $43,951 – $174,610 | 6.80% |
| $98,761 – $183,340 | $174,611 – $304,970 | 7.85% |
| Over $183,340 | Over $304,970 | 9.85% |
Standard deduction: ~$14,575 (single) / ~$29,150 (married). Brackets apply to taxable income after deductions.
Estimates only. MN progressive brackets 5.35%–9.85%. Standard deduction ~$14,575 (single) / ~$29,150 (married). Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Minnesota State Tax | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Minnesota has four progressive income tax brackets ranging from 5.35% to 9.85% for 2026. Notably, Minnesota's lowest bracket (5.35%) starts at $0 of taxable income — meaning it's higher than the flat rate in many neighboring states. Most middle-income earners hit the 6.80% bracket, and high earners above $183,340 face the 9.85% rate, one of the highest state income tax rates in the country.
Four taxes come out of a Minnesota paycheck: federal income tax (progressive brackets based on your W-4), Minnesota state income tax (5.35%–9.85% progressive), Social Security (6.2% up to $184,500), and Medicare (1.45% on all wages). Minnesota has no statewide local income tax — Minneapolis, St. Paul, and other cities do not add a local income tax on wages.
Minnesota is the highest-tax income state in its region by a wide margin. A single earner at $75,000 pays approximately $4,100 in MN state tax. Compare that to Wisconsin (~$3,600), Iowa ($2,850 at 3.8% flat), North Dakota (~$1,500 at 2.5% flat), and South Dakota ($0 — no income tax). Minnesota's high taxes fund strong public services, education spending, and infrastructure relative to its neighbors.
Yes — Minnesota is one of only a handful of states that taxes Social Security benefits. However, MN provides an exemption for lower-income retirees. For 2026, Social Security benefits can be fully excluded if your provisional income is below approximately $78,000 (single) or $100,000 (married). Above those thresholds, the exemption phases out. High-income retirees in Minnesota pay state tax on a portion of their Social Security, which significantly affects retirement planning.
No. Minnesota does not have a local income tax on wages. Minneapolis and St. Paul workers pay only the state income tax at the 5.35%–9.85% rates — no city tax is added on top. This is different from New York City (which adds 3%+ on top of NY state tax) or Pennsylvania (where most municipalities levy 1–2% local EIT). Minnesota's high state rate is the full story.
Minnesota's standard deduction for 2026 is approximately $14,575 for single filers and $29,150 for married filing jointly. Minnesota's standard deduction generally tracks the federal standard deduction but is not identical and is set by the Minnesota Department of Revenue. Unlike some states that use the federal standard deduction directly, Minnesota sets its own amounts annually.
On a $75,000 salary paid biweekly ($2,885 per check), Minnesota withholds approximately $158–$165 per paycheck in state income tax. On $100,000 ($3,846 per check), it's approximately $220–$230 per paycheck. On $150,000, approximately $345–$360 per paycheck. The 6.80% bracket captures most middle-income earners, so a rough rule of thumb is that Minnesota takes about 6–7 cents of every gross dollar for most workers.
Pre-tax contributions to a 401(k), HSA, or health insurance plan reduce both federal and Minnesota taxable income — each dollar reduces your MN tax by 5.35%–9.85% depending on your bracket. Minnesota also offers a Working Family Credit for lower-income earners, a K-12 Education Credit, and property tax refund programs. High earners sometimes choose to defer income into retirement accounts to delay MN taxation. Moving to South Dakota (no income tax) is a common consideration for Minnesota retirees.