TAXES 17-14, Minnesota State Income Tax Withholding

TAXES 17-14, Minnesota State Income Tax Withholding

Published: March 23, 2017
Effective: Pay Period 06, 2017

Summary

The Single and Married income tax withholdings for the State of Minnesota will increase as a result of changes to the formula for tax year 2017. 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, 2017)

  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 = $4,050 x Number of Exemptions.

  6. 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 $2,300

    $0.00

    Over $2,300 but not over $27,690

    $0.00 plus 5.35% of excess over $2,300

    Over $27,690 but not over $85,700

    $1,358.37 plus 7.05% of excess over $27,690

    Over $85,700 but not over $159,210

    $5,448.08 plus 7.85% of excess over $85,700

    Over $159,210

    $11,218.62 plus 9.85% of excess over $159,210

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $8,650

    $0.00

    Over $8,650 but not over $45,760

    $0.00 plus 5.35% of excess over $8,650

    Over $45,760 but not over $156,100

    $1,985.39 plus 7.05% of excess over $45,760

    Over $156,100 but not over $270,160

    $9,764.36 plus 7.85% of excess over $156,100

    Over $270,160

    $18,718.07 plus 9.85% of excess over $270,160

  7. Divide the annual Minnesota tax withholding calculated in step 6 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 National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Formula

Inquiries

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