TAXES 20-07, Minnesota State Income Tax Withholding

Published: March 31, 2020
Effective: Pay Period 04, 2020

Summary

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

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 MN

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

In the event an employee does not file a State withholding exemption certificate, then Single and zero (0) exemptions will be used as the basis for withholding.

 

Withholding Formula (Effective Pay Period 04, 2020)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees 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 (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year 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:

    Multiply the number of Allowances by $4,300

  6. Apply the taxable income computed in step 5 to the following tables 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 $3,800

    $0.00

    Over $3,800 but not over $30,760

    5.35% of excess over $3,800

    Over $30,760 but not over $92,350

    $1,442.36 plus 6.80% of excess over $30,760

    Over $92,350 but not over $168,200

    $5,630.48 plus 7.85% of excess over $92,350

    Over $168,200

    $11,584.71 plus 9.85% of excess over $168,200

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $11,900

    $0.00

    Over $11,900 but not over $51,310

    5.35% of excess over $11,900

    Over $51,310 but not over $168,470

    $2,108.44 plus 6.80% of excess over $51,310

    Over $168,470 but not over $285,370

    $10,075.32 plus 7.85% of excess over $168,470

    Over $285,370

    $19,251.97 plus 9.85% of excess over $285,370

     

  7. Divide the annual Minnesota tax withholding calculated in step 6 by the number of pay dates in the tax year 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) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

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 customer service portal.