Minnesota Paycheck Calculator
Calculate your take-home pay after federal & Minnesota taxes
Updated for 2023 tax year on Mar 15, 2023
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Paycheck calculator for Minnesota
Overview of Minnesota
The Land of 10,000 Lakes has a population of under 6 million (2020), with most living in the twin cities of Minneapolis and Saint Paul. The median household income is $68,388 (2017), and it is one of the wealthiest states in the USA.
Brief summary:
- the income tax rate ranges from 5.35% to 9.85%
- nope of the cities has a local income tax
- no state payroll taxes
- has standard deduction and exemption (if you have dependents)
From Wikipedia
Understanding your Minnesota paycheck
Gaining a clear understanding of your Minnesota paycheck is essential for successfully managing your finances, whether you’re just starting in the workforce or have years of experience. This article will explore the income tax rate, deductions, exemptions, and other key components that make up your paycheck.
Your paycheck begins with your gross pay, representing your total earnings before deductions. Numerous factors come into play to reduce this amount, ultimately leaving you with your net pay. We’ll break down these components to help you grasp where your hard-earned money goes.
One crucial aspect of your paycheck is the federal income tax withheld, which is based on the W-4 you submit to your employer. This crucial form helps determine the correct withholding by considering your filing status, income, dependents, and additional income or deductions.
Minnesota employs a progressive state income tax system, which means that as your income level increases, so do the tax rates. Familiarizing yourself with this system and how it affects your paycheck is vital.
Another important component of your paycheck is personal exemptions. An exemption is someone you can claim on your tax return. It can be yourself, your spouse, and any dependents. Claiming exemptions reduces the income subject to tax, lowering your overall tax liability. Although personal exemptions were eliminated for federal income tax purposes in 2017, you can still claim exemptions at the state level. Be sure to understand the exemptions available in Minnesota and update your W-4 form accordingly.
Your paycheck will also account for payroll taxes, known as FICA taxes (Social Security and Medicare). These taxes support vital social programs for both current and future generations. Both employees and employers share the responsibility of contributing to these programs.
Your paycheck can also feature various deductions. Pre-tax deductions (retirement plans and HSAs) will reduce your taxable income.
Conversely, post-tax deductions are applied after calculating your taxable income. These deductions may include union dues, charitable donations, and wage garnishments. As each individual’s circumstances differ, staying informed about the specific deductions that apply to you is crucial.
After all deductions, exemptions, and taxes have been accounted for, you will get your net pay. Regularly reviewing your pay stubs helps ensure the accuracy of deductions and provides insight into how your financial decisions affect your take-home pay.
Consider contributing to tax-advantaged accounts such as 401(k) plans and HSAs to enhance your tax situation. These pre-tax contributions can lower your taxable income, potentially reducing taxes and improving your financial future.
Calculate your Minnesota paycheck
Minnesota tax year starts from July 01 the year before to June 30 the current year. So the tax year 2022 will start from July 01 2021 to June 30 2022.
Follow the steps below to calculate your take-home pay after state income tax:
- figure out your filing status
- work out your adjusted gross income [Net income – Adjustments = Adjusted gross income]
- calculate your taxable income [Adjusted gross income – (Standard/Itemized deductions + Exemptions) = Taxable income]
- understand your income tax liability [Taxable income × Income tax rate = Income tax liability]
- minus any tax liability, deductions, withholdings [Net income – (Income tax liability + Pre-tax deductions + Post-tax deductions + Withholdings) = Your paycheck]
State payroll tax
There are no state payroll insurance taxes in Minnesota.
State income tax brackets
Each filer type has different progressive tax rates. Refer to Tax Foundation for more details.
| Tax year | Filing status | Taxable income | Rate |
|---|---|---|---|
| 2022 | Single | $0 – $28,080 | 5.35% |
| $28,080 – $92,230 | 6.80% | ||
| $92,230 – $171,220 | 7.85% | ||
| $171,220+ | 9.85% | ||
| Married, Filing Jointly or Widow(er) | $0 – $41,050 | 5.35% | |
| $41,050 – $163,060 | 6.80% | ||
| $163,060 – $284,810 | 7.85% | ||
| $284,810+ | 9.85% | ||
| Married, Filing Separately | $0 – $20,525 | 5.35% | |
| $20,525 – $81,530 | 6.80% | ||
| $81,530 – $142,405 | 7.85% | ||
| $142,405+ | 9.85% | ||
| Head of Household | $0 – $34,570 | 5.35% | |
| $34,570 – $138,890 | 6.80% | ||
| $138,890 – $227,600 | 7.85% | ||
| $227,600+ | 9.85% | ||
| 2021 | Single | $0 – $27,230 | 5.35% |
| $27,230 – $89,440 | 6.80% | ||
| $89,440 – $166,040 | 7.85% | ||
| $166,040+ | 9.85% | ||
| Married, Filing Jointly or Widow(er) | $0 – $39,810 | 5.35% | |
| $39,810 – $158,140 | 6.80% | ||
| $158,140 – $276,200 | 7.85% | ||
| $276,200+ | 9.85% | ||
| Married, Filing Separately | $0 – $19,905 | 5.35% | |
| $19,905 – $79,070 | 6.80% | ||
| $79,070 – $138,100 | 7.85% | ||
| $138,100+ | 9.85% | ||
| Head of Household | $0 – $33,520 | 5.35% | |
| $33,520 – $134,700 | 6.80% | ||
| $134,700 – $220,730 | 7.85% | ||
| $220,730+ | 9.85% | ||
| 2020 | Single | $0 – $26,520 | 5.35% |
| $26,520 – $87,110 | 6.80% | ||
| $87,110 – $161,720 | 7.85% | ||
| $161,720+ | 9.85% | ||
| Married, Filing Jointly or Widow(er) | $0 – $38,770 | 5.35% | |
| $38,770 – $154,020 | 6.80% | ||
| $154,020 – $269,010 | 7.85% | ||
| $269,010+ | 9.85% | ||
| Married, Filing Separately | $0 – $19,385 | 5.35% | |
| $19,385 – $77,010 | 6.80% | ||
| $77,010 – $134,505 | 7.85% | ||
| $134,505+ | 9.85% | ||
| Head of Household | $0 – $32,650 | 5.35% | |
| $32,650 – $131,190 | 6.80% | ||
| $131,190 – $214,980 | 7.85% | ||
| $214,980+ | 9.85% |
State standard deduction
The state-level standard deduction is tied to the federal standard deduction. For more information, refer to Tax Foundation.
| Tax year | Filing status | Standard deduction amount |
|---|---|---|
| 2022 | Single Married, Filing Separately |
$12,900 |
| Married, Filing Jointly or Widow(er) | $25,800 | |
| Head of Household | $19,400 | |
| 2021 | Single Married, Filing Separately |
$12,525 |
| Married, Filing Jointly or Widow(er) | $25,050 | |
| Head of Household | $18,800 | |
| 2020 | Single Married, Filing Separately |
$12,200 |
| Married, Filing Jointly or Widow(er) | $24,400 | |
| Head of Household | $18,350 |
State exemptions
You can only claim dependents as exemptions in Minnesota. Refer to Tax Foundation for more details.
| Tax year | Filing status | Personal exemption amount |
|---|---|---|
| 2022 | Dependent(s) | $4,450 |
| 2021 | Dependent(s) | $4,350 |
| 2020 | Dependent(s) | $4,250 |
FAQs
What taxes do Minnesotans pay?
Minnesotans only need to pay the progressive state income tax. There is no local income tax or state-level payroll tax. There is a standard deduction.
How much do you make after taxes in Minnesota?
The post-tax take-home pay of a single Minnesotan who earns $69,000 per annual is $52,365.86.
Married filers with a combined annual income of $138,000 will take home $104,512.62 after taxes.
How much taxes are deducted from a $69,000 paycheck in Minnesota?
The total taxes deducted for a single filer are $1386.18 monthly or $639.78 bi-weekly.