Minnesota Income
Tax Rates & Rules

Minnesota uses four progressive individual income tax rates in 2026: 5.35 percent, 6.80 percent, 7.85 percent and 9.85 percent. The income thresholds vary by filing status, so a Minnesota income tax calculator must use the correct bracket schedule rather than apply one flat rate to all taxable income.

Minnesota Income Tax Brackets for 2026

Minnesota's 2026 tax brackets range from 5.35 percent to 9.85 percent, with different thresholds for single, married and head-of-household filers.

These are marginal brackets. Reaching a higher bracket does not cause all Minnesota taxable income to be taxed at the highest rate. Each rate applies only to the taxable income within its bracket.

Minnesota Standard Deductions for 2026

Minnesota's 2026 standard deduction is $30,600 for married filing jointly, $15,300 for single or married filing separately and $23,000 for head of household.

The 2026 dependent exemption is $5,300. Additional rules can limit or phase out deductions and exemptions for higher-income taxpayers, so the published amounts are starting points rather than a guarantee that every taxpayer receives the full amount.

• Married Filing Jointly: $30,600 standard deduction.
• Single: $15,300 standard deduction.
• Married Filing Separately: $15,300 standard deduction.
• Head of Household: $23,000 standard deduction.
• Dependent exemption: $5,300.

How Minnesota Taxable Income Is Calculated

Minnesota taxable income generally begins with federal income concepts then applies Minnesota additions, subtractions, deductions and exemptions before the state brackets are applied.

• Start with federal adjusted gross income and federal taxable-income information required by Minnesota.
• Apply Minnesota additions for income or deductions treated differently by the state.
• Apply Minnesota subtractions allowed under state law.
• Apply the Minnesota standard deduction or itemized deductions when eligible.
• Apply dependent exemptions and other adjustments when allowed.
• Determine Minnesota taxable income.
• Apply the 2026 marginal tax brackets for the correct filing status.
• Subtract eligible credits and payments to determine final tax due or refund.

Gross salary is therefore not the same as Minnesota taxable income. A simple salary multiplied by 5.35 or 9.85 percent will not reproduce the state return.

Who Pays Minnesota Income Tax?

Full-year residents are generally taxed on income from all sources while part-year residents and nonresidents are taxed under Minnesota sourcing and residency rules.

• Full-year resident: generally pays Minnesota tax on income from all sources.
• Part-year resident: generally pays Minnesota tax on Minnesota-source income plus non-Minnesota income received while a Minnesota resident.
• Nonresident: generally pays Minnesota tax on Minnesota-source income.

Full-year residents generally file Form M1. Part-year residents and nonresidents use Form M1 plus Schedule M1NR when required. As of August 25, 2026, final 2026 Form M1 filing thresholds and the complete return package are not yet available, so the filing threshold should be confirmed when Minnesota releases the 2026 instructions.

Minnesota Nonresident Wage Income Depends on Where Work Is Performed

For a nonresident employee, wages are generally Minnesota-source when the services are physically performed in Minnesota.

A nonresident who works from another state for a Minnesota-based employer generally does not create Minnesota wage income simply because the employer is located in Minnesota. A hybrid employee can have Minnesota-source wages for days worked physically in Minnesota and non-Minnesota wages for days worked elsewhere, subject to the state's allocation rules.

Does Minnesota Tax Remote Workers?

Minnesota residents are generally taxed on wages from remote work even when the employer or work activity is outside Minnesota, while nonresidents are generally taxed on wages for services performed in Minnesota.

A resident who works remotely from Minnesota for an out-of-state employer generally remains subject to Minnesota income tax because residents are taxed on income from all sources. If another state also taxes the same income, Minnesota credit rules can help address qualifying double taxation.

For nonresidents, physical work location is central. Accurate workday records can be important for employees who split time between Minnesota and another state.

Minnesota Has Wage Reciprocity With Michigan and North Dakota

Minnesota has reciprocal wage agreements with Michigan and North Dakota for qualifying personal service income.

A qualifying resident of Michigan or North Dakota can generally have wages for services performed in Minnesota taxed by the home state rather than Minnesota, provided the reciprocity requirements are met. Employees generally use Form MWR to claim the Minnesota withholding exemption.

Reciprocity does not exempt every type of Minnesota income. Business income, rental income and other Minnesota-source income can still create Minnesota tax and filing obligations.

Minnesota Withholding Is Not the Same as Final Income Tax

Minnesota wage withholding is a prepayment toward annual state income tax, while the return applies brackets, deductions, exemptions and credits to determine final liability.

Employers use Form W-4MN and the 2026 withholding instructions to calculate state withholding from wages. An employee's filing status, withholding elections, pay frequency and taxable wages can make payroll withholding differ from the final annual tax.

For an estimate focused on one paycheck rather than annual tax liability, use the Minnesota paycheck calculator.

Minnesota Paid Leave Is a Payroll Premium, Not Income Tax

Minnesota Paid Leave can reduce a covered employee's paycheck in 2026, but it is a separate payroll premium rather than part of the Minnesota individual income tax.

The standard 2026 Paid Leave premium rate is 0.88 percent of covered wages and employers can generally collect up to 0.44 percent from covered employees. That payroll deduction should not be added to the Minnesota income tax rate or described as another state income tax bracket.

Keep Annual Tax and Payroll Documentation Separate

An annual Minnesota tax estimate and an employee pay stub answer different questions, so withholding records should come from the actual payroll run.

After payroll is finalized, the Minnesota pay stub generator can organize real earnings, Minnesota withholding and other deductions into an itemized record. For a general lawful workflow, you can create online paystub records only from genuine payroll information.

Tax Information and Responsible Use

This page is designed to explain state income tax concepts and payroll withholding for general informational and lawful recordkeeping purposes.

Tax liability can vary by residency, filing status, income source, deductions, credits and tax year. Use current official state instructions when preparing a return. Online PayStub should be used only with genuine employment, earnings, withholding and payment information. Do not use generated payroll records to fabricate employment, inflate income or misrepresent payment history.