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:

The annual amount per exemption has increased from $4,250 to $4,300.
The Single and Married tax withholding tables have changed.

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)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
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.
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.
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year 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:
Multiply the number of Allowances by $4,300

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

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.

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