Minneapolis, MN Paycheck Calculator 2026

How paychecks work in Minnesota

Minneapolis, Minnesota residents follow the same statewide payroll rules as everyone else in Minnesota, with the additional local considerations noted below. Every paycheck issued in Minnesota has three federal withholdings — federal income tax, Social Security, and Medicare — followed by Minnesota's own withholding rules and any local wage tax that applies where you work. Minnesota has a progressive state income tax with a top marginal rate of 9.85%. Minnesota's economy blends healthcare (Mayo Clinic, UnitedHealth), retail (Target, Best Buy), agriculture, and Fortune 500 headquarters concentrated in the Twin Cities.

This page explains, step by step, how gross wages become take-home pay in Minnesota: what the federal government takes, what the state of Minnesota takes, which cities and localities add their own withholding, and how minimum wage, overtime, and pay-frequency rules interact with common benefits like 401(k) contributions and pre-tax health premiums.

Federal taxes on Minnesota paychecks

Regardless of where you live, the IRS applies the same federal income tax brackets, standard deduction, and FICA contributions. For 2026, the federal tax brackets range from 10% on the first ~$12,400 of taxable income (single) up to 37% on income above roughly $626,000. Most workers land in the 12%, 22%, or 24% brackets after subtracting the $16,100 single (or $32,200 married-jointly) standard deduction.

On top of federal income tax, every Minnesota employee pays FICA: 6.2% Social Security up to a $184,500 wage base, plus 1.45% Medicare on all wages, with an additional 0.9% Medicare surtax on wages over $200,000 (single). Employers match Social Security and Medicare dollar-for-dollar; you only see your half on the stub.

Minnesota state income tax

Minnesota uses 4 tax brackets ranging from 5.35% on the first dollars of taxable income up to 9.85% on income above $198,630. The state standard deduction is $14,575 single / $29,150 married.

The top marginal bracket of 9.85% kicks in only after the income thresholds shown above; most Minnesota residents effectively pay a lower blended rate because the first dollars of income are taxed at the lower brackets, and the state standard deduction reduce the amount actually taxed.

Local wage taxes in Minnesota

Minneapolis and St. Paul have higher local minimum wages but no local income tax on wages.

FICA: Social Security and Medicare

Social Security is the biggest single deduction most middle-income Minnesota workers see besides federal income tax. It funds retirement, disability, and survivor benefits, and applies at 6.2% until you have earned $184,500 for the year (2026). If you earn more than that, Social Security stops for the remainder of the year — a highly visible bump in take-home pay for high earners late in the calendar year.

Medicare has no cap. All wages are hit at 1.45%, and an extra 0.9% Additional Medicare Tax applies to any wages above $200,000 (single) or $250,000 (married filing jointly). Employers begin withholding the additional 0.9% the pay period you cross $200,000, whether or not you'll actually owe it after year-end.

Overtime rules for Minnesota employees

1.5x for hours over 48/week (Minnesota state law) or 40 under federal FLSA, whichever applies.

Overtime pay itself is taxed exactly the same way as regular wages — there is no special overtime tax rate. But because a paycheck with lots of overtime looks temporarily much larger, employer withholding formulas may withhold a higher percentage than your true annual rate. That withholding is reconciled at tax time via your federal 1040 and Minnesota state return, so if you consistently work overtime you may want to review your W-4 to avoid over-withholding.

Minimum wage in Minnesota

The current minimum wage in Minnesota is $11.13 per hour. Minnesota's large-employer minimum wage is indexed to inflation. At 40 hours per week and 52 weeks per year, that equates to roughly $23,150 in gross annual wages before overtime.

Pay frequency rules

At least every 31 days for most workers; every 15 days for manual laborers. Most private-sector employees in Minnesota are paid either weekly or bi-weekly, with salaried professionals often on a semi-monthly schedule. Choosing the right pay-frequency assumption is important when using the calculator above, because the same annual salary produces different per-paycheck amounts depending on whether it's split over 26 (bi-weekly) or 24 (semi-monthly) periods.

Reciprocal states

Minnesota has reciprocal income tax agreements with Michigan and North Dakota. If you live in one of those states but work in Minnesota (or vice versa), you generally only pay state income tax to your home state — you fill out a certificate of non-residence with your employer to stop withholding for the work state.

Example take-home pay in Minnesota

The table below shows estimated federal, FICA, and Minnesota state tax for a single filer at several common salary levels, using 2026 rules and the standard deduction. Bi-weekly amounts assume 26 paychecks per year.

Common Minnesota payroll deductions to watch

• 401(k) contributions — pre-tax dollars reduce federal (and, in Minnesota, state) income tax. The 2026 employee limit is $24,500 ($32,000 if age 50+).
• Pre-tax health premiums — Section 125 cafeteria plan contributions reduce federal, state, and FICA-taxable wages.
• HSA contributions — for high-deductible health plans, HSA money is pre-tax at both federal and state levels in Minnesota.
• Garnishments, child support, and Roth 401(k) — these post-tax deductions do not reduce taxable wages but still cut take-home pay.
• Minnesota has one of the highest top marginal state income tax rates at 9.85%.
• Minnesota hosts 17 Fortune 500 headquarters, the largest concentration per capita in the U.S.

Key industries and pay levels in Minnesota

Minnesota's top industries include Healthcare, Retail, Agriculture, Manufacturing, and Financial Services. Major employers like UnitedHealth Group, Mayo Clinic, Target, and 3M anchor a large share of state payrolls, and pay levels tend to track industry mix — states heavy on technology, finance, and aerospace typically show higher median household income than states dominated by agriculture, tourism, or retail.