# TAXES 16-11, Minnesota State Income Tax Withholding

Published: March 16, 2016

Effective: Pay Period 06, 2016

## Summary

The income tax withholding formula for the State of Minnesota will include the following changes:

- The exemption allowance, per exemption, will increase from $4,000 to $4,050.
- The Single and Married withholding tables will increase.

No action on the part of the employee or the personnel office is necessary.

## Tax Formula

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 |

#### Withholding Formula (Effective Pay Period 06, 2016)

- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- 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.
- 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.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
- 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 = $4,050 x Number of Exemptions.

- Apply the taxable income computed in step 5 to the following table(s) to determine the annual Minnesota tax withholding:
Single Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $2,250

$0.00

Over $2,250 but not over $27,430

$0.00 plus 5.35% of excess over $2,250

Over $27,430 but not over $84,990

$1,347.13 plus 7.05% of excess over $27,430

Over $84,990 but not over $157,900

$5,405.11 plus 7.85% of excess over $84,990

Over $157,900

$11,128.55 plus 9.85% of excess over $157,900

Married Tax Withholding Table

If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $8,550

$0.00

Over $8,550 but not over $45,370

$0.00 plus 5.35% of excess over $8,550

Over $45,370 but not over $154,820

$1,969.87 plus 7.05% of excess over $45,370

Over $154,820 but not over $267,970

$9,686.10 plus 7.85% of excess over $154,820

Over $267,970

$18,568.38 plus 9.85% of excess over $267,970

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

## Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the **MyNFC **drop-down menu on the NFC homepage. Click the** Publications** tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

## Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at *1-855-NFC-4GOV (1-855-632-4468)* or via the Internet using the Requester Console.