Minnesota State Income Tax Withholding Formula | National Finance Center

Minnesota State Income Tax Withholding Information

State Abbreviation:

MN

State Tax Withholding State Code:

27

Acceptable Exemption Form:

W-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S, M/Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Resources:

TAXES 15-15, Minnesota State Income Tax Withholding

Withholding Formula (Effective Pay Period 06, 2015)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.

    Exemption Allowance = $4,000 x Number of Exemptions.

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Minnesota tax withholding.

    Single - Tax Withholding Tables

    If the Amount of
    Taxable Income Is:

    The Amount of Minnesota
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $2,300

     

    $0

    plus

    0.00%

    $0

    2,300

    27,370

     

    0

    plus

    5.35%

    2,300

    27,370

    84,660

     

    1,341.25

    plus

    7.05%

    27,370

    84,660

    157,250

     

    5,380.20

    plus

    7.85%

    84,660

    157,250

    and over

     

    11,078.52

    plus

    9.85%

    157,250

    Married - Tax Withholding Tables

    If the Amount of
    Taxable Income Is:

    The Amount of Minnesota
    Tax Withholding Should Be:

    Over:

    But Not Over:

     

    Of Excess Over:

    $0

    $8,600

     

    $0

    plus

    0.00%

    $0

    8,600

    45,250

     

    0

    plus

    5.35%

    8,600

    45,250

    154,220

     

    1,960.78

    plus

    7.05%

    45,250

    154,220

    266,860

     

    9,643.17

    plus

    7.85%

    154,220

    266,860

    and over

     

    18,485.41

    plus

    9.85%

    266,860

  7. Divide the annual Minnesota tax withholding by 26 to obtain the biweekly Minnesota tax withholding.