Minnesota Salary & Tax Calculator
Minnesota's top marginal state income tax rate is pre-filled below (9.85%). Adjust it if you want to blend in federal withholding for a fully combined effective rate.
*Estimates only, illustrative and not tax or financial advice. Actual Minnesota and federal taxes may vary — consult a tax professional for precise figures.
Wondering how much house you can afford with your net pay?
Mortgage Loan CalculatorMinnesota runs one of the most progressive state income tax systems in the country, with four brackets that climb from 5.35% up to a top marginal rate of 9.85% on income above roughly $193,000 for single filers (higher thresholds for joint filers). We've pre-filled the calculator with the top 9.85% rate so high earners can see the ceiling, but if your income falls in a lower bracket you should reduce the effective rate accordingly — most middle-income Minnesotans pay an effective state rate closer to 6-7% once you blend the bracket structure. Minnesota's 9.85% top rate is among the highest in the nation, trailing only California, Hawaii, New York, and New Jersey. Compared to its immediate neighbors, the gap is stark: Wisconsin tops out at 7.65%, Iowa has been rapidly flattening toward a 3.8% flat rate, North Dakota's top bracket is just 2.5%, and South Dakota has no income tax whatsoever. Minneapolis and St. Paul do not add a separate municipal income tax, so your state withholding is the full story at the local level, though sales and property taxes in the Twin Cities metro run above the national average.
🏆 Decoding Your Minnesota Paycheck
Everything you need to know about using this calculator and the math behind it.
How it Works
Strips away estimated federal and Minnesota state taxes plus common deductions from your gross salary to reveal your actual take-home (net) pay.
The Formula
Net Pay = Gross Pay − (Federal Tax + Minnesota State Tax (9.85%) + FICA + Pre-tax Deductions).
Pro Tip
Wisconsin tops out at 7.65%, Iowa is flattening toward roughly 3.8%, North Dakota's top rate is just 2.5%, and South Dakota has no state income tax at all, making Minnesota a notable outlier in the Upper Midwest. Compare offers across state lines carefully — a higher salary in a high-tax state doesn't always beat a lower salary in a low-tax one.
Frequently Asked Questions
What is Minnesota's top income tax rate? +
Minnesota's top marginal state income tax rate is 9.85%, among the highest in the nation, applied through a four-tier progressive bracket system starting at 5.35%. Only income above roughly $193,240 (single filers, 2024) is taxed at the top 9.85% rate.
Is Minnesota's 9.85% rate applied to all income or just the top bracket? +
Only the top bracket. Minnesota uses a four-tier progressive system (5.35%, 6.80%, 7.85%, and 9.85%), and the 9.85% rate only applies to taxable income above roughly $193,240 for single filers in 2024 (about $321,450 for married joint filers). Income below those thresholds is taxed at lower rates, so most residents' effective state tax rate is well under 9.85%.
What is the difference between gross pay and net pay? +
Gross pay is your total salary before any deductions. Net take-home pay is what you actually receive after federal and state income taxes, Social Security (6.2%), Medicare (1.45%), health insurance premiums, 401k contributions, and other deductions. For most US workers, net pay is roughly 70-80% of gross pay.
How does the US progressive federal tax system interact with Minnesota's state tax? +
Federal tax uses seven brackets (10% to 37%) applied progressively regardless of which state you live in. Minnesota's own four-bracket system is calculated separately and added on top of your federal liability. This calculator lets you enter a single combined effective rate so you can see both layers at once.
How can I reduce my taxable income in Minnesota? +
Pre-tax contributions to a 401k or traditional IRA reduce taxable income at both the federal and Minnesota state level. Health Savings Accounts and FSAs offer similar pre-tax treatment for medical and dependent care costs. Because Minnesota's top bracket is so high, high earners see an outsized state-tax benefit from maximizing pre-tax retirement contributions.