Minnesota has one of the most progressive income tax systems in the nation with rates ranging from 5.35% to 9.85%, making it a higher-tax state that prioritizes public services and social programs. Our free Minnesota paycheck calculator shows your exact take-home pay after federal taxes, Minnesota state tax, and FICA deductions. Whether you're considering a move to the Land of 10,000 Lakes, comparing job opportunities in Minneapolis-St. Paul, or budgeting your current Minnesota salary, get accurate results based on 2025 tax rates.
Minnesota Tax System Overview
Minnesota uses a highly progressive income tax system with four tax brackets:
2025 Minnesota Tax Brackets (Single Filer)
| Income Range | Tax Rate | Tax Amount |
|---|---|---|
| $0 - $31,690 | 5.35% | Up to $1,695 |
| $31,691 - $103,870 | 6.80% | Up to $6,603 |
| $103,871 - $183,340 | 7.85% | Up to $12,842 |
| $183,341+ | 9.85% | $12,842+ |
- Standard Deduction: $14,700 (single), $29,400 (married filing jointly)
- Personal Exemption: $4,850 per person
- No Local Income Tax: Cities cannot impose additional income taxes
- High-Service State: Higher taxes fund extensive public services
Sample Minnesota Paycheck Calculations
Here's how much you'll take home at different salary levels in Minnesota:
$70,000 Annual Salary
- Gross Pay: $70,000
- Federal Tax: $8,039
- MN State Tax: $3,875
- FICA Taxes: $5,355
- Take-Home Pay: $52,731 (75.3%)
- Monthly Net: $4,394
- Bi-weekly Net: $2,028
$100,000 Annual Salary
- Gross Pay: $100,000
- Federal Tax: $14,260
- MN State Tax: $6,346
- FICA Taxes: $7,650
- Take-Home Pay: $71,744 (71.7%)
- Monthly Net: $5,979
- Bi-weekly Net: $2,759
$150,000 Annual Salary
- Gross Pay: $150,000
- Federal Tax: $26,674
- MN State Tax: $10,969
- FICA Taxes: $11,475
- Take-Home Pay: $100,882 (67.3%)
- Monthly Net: $8,407
- Bi-weekly Net: $3,880
Minnesota vs. Neighboring States
Compare Minnesota's tax burden with surrounding states:
Minnesota ($100k salary)
- Take-home: $71,744
- Effective rate: 28.3%
- State tax: $6,346
- Higher tax burden
Wisconsin ($100k salary)
- Take-home: $74,056
- Effective rate: 25.9%
- State tax: $4,034
- WI Saves: $2,312/year
Understanding Minnesota's High-Tax Model
What Your Higher Taxes Fund
Minnesota's higher tax rates support extensive public services:
- Education: High-quality public schools and universities
- Healthcare: Robust state health programs and support
- Infrastructure: Well-maintained roads, bridges, and transit
- Social Services: Comprehensive safety net programs
Minnesota Tax Credits and Benefits
Minnesota offers various credits to offset higher rates:
- Working Family Credit: Refundable credit for working families
- Child and Dependent Care Credit: Substantial childcare support
- Renter's Credit: Property tax refund for renters
- K-12 Education Credit: Credits for educational expenses
Twin Cities vs. Greater Minnesota
Tax rates are the same statewide, but costs and benefits vary:
Minneapolis-St. Paul Metro
- State tax: 5.35-9.85%
- Cost of living: Higher
- Services: Extensive transit, amenities
- Job market: Diverse, Fortune 500 HQs
Greater Minnesota
- State tax: 5.35-9.85%
- Cost of living: Much lower
- Services: Good schools, rural support
- Job market: Agriculture, tourism, mining
Minnesota Retirement Considerations
Minnesota's retirement tax situation is mixed:
- Social Security: Not taxed by Minnesota
- Pension Income: Generally subject to state income tax
- 401(k) & IRA: Withdrawals taxed as ordinary income
- Military Retirement: Up to $2,000 exemption available
Frequently Asked Questions
Why are Minnesota's tax rates so high?
Minnesota prioritizes public services and has chosen a high-tax, high-service model. This funds excellent schools, healthcare programs, infrastructure, and social services that many residents value.
Does Minnesota tax Social Security benefits?
No, Minnesota does not tax Social Security benefits, providing some relief for retirees despite the higher income tax rates.
Are there ways to reduce my Minnesota tax burden?
Yes, Minnesota offers numerous tax credits including the Working Family Credit, Child Care Credit, and Renter's Credit that can significantly reduce your effective tax rate.
Tax Planning Tips for Minnesota Residents
Maximize Available Credits
Minnesota offers extensive tax credits. Work with a tax professional to ensure you're claiming all available credits to offset higher rates.
Consider Retirement Timing
With high income tax rates, timing retirement income carefully and maximizing pre-tax retirement contributions can provide significant savings.
Factor in Total Value
When evaluating Minnesota's tax burden, consider the value of public services, education quality, and infrastructure that your taxes help fund.
Ready to Calculate Your Minnesota Take-Home Pay?
Use our calculator above to see exactly how much you'll keep from your paycheck in Minnesota.