TAXES 22-15, Minnesota State Income Tax Withholding

Published: March 30, 2022
Effective: Pay Period 06, 2022

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-4MN

Basis for Withholding:

State or Federal Exemptions (see the Additional Information section)

Acceptable Exemption Data:

S/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

Employees who have not previously submitted a Form W-4MN and have submitted a 2020 or later Federal Form W-4, will default to Single and zero (S00). Employees who have not previously submitted a Form W-4MN and have not submitted a 2020 or later Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission.

Withholding Formula (Effective Pay Period 06, 2022)

  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 $4,450

  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 $4,000

    $0.00

    Over $4,000 but not over $32,080

    5.35% of excess over $4,000

    Over $32,080 but not over $96,230

    $1,502.28 plus 6.80% of excess over $32,080

    Over $96,230 but not over $175,220

    $5,864.48 plus 7.85% of excess over $96,230

    Over $175,220

    $12,065.20 plus 9.85% of excess over $175,220

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $12,450

    $0.00

    Over $12,450 but not over $53,500

    5.35% of excess over $12,450

    Over $53,500 but not over $175,510

    $2,196.18 plus 6.80% of excess over $53,500

    Over $175,510 but not over $297,260

    $10,492.86 plus 7.85% of excess over $175,510

    Over $297,260

    $20,050.24 plus 9.85% of excess over $297,260

     

  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

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