Minnesota Tax Guide for Employers (2026) 

Minnesota uses a progressive income tax with multiple brackets and relatively high top rates. The state has its own withholding form and maintains reciprocal tax agreements with Michigan and North Dakota. 

Minnesota’s progressive income tax uses multiple brackets. For 2026, each personal allowance is worth $5,300 and the supplemental rate is 6.25%. Employees complete Form W-4MN with their filing status and total allowances. There is also a nonresident withholding threshold of $15,300—nonresidents earning less than this amount in Minnesota may be exempt. 

Minnesota supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 6.25%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.0%. 

Minnesota requires contributions to Minnesota Paid Leave. Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://www.revenue.state.mn.us/withholding-tax.

Follow these steps to begin withholding Minnesota payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Minnesota Department of Revenue at mndor.state.mn.us
3. Register for SUTA with the Minnesota DEED at uimn.org
4. Submit a Netchex tax team request to enable Minnesota SIT and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Minnesota payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Minnesota payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Minnesota Department of Revenue. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Minnesota Department of Revenue at https://www.revenue.state.mn.us/withholding-tax. 

The following official resources will help you stay current on Minnesota payroll tax requirements: 

• Minnesota Department of Revenue
• Minnesota DOR — Withholding
• Minnesota Form W-4MN

Does Minnesota use the federal W-4? 

No. Minnesota requires employees to complete Form W-4MN, the Minnesota Employee Withholding Allowance/Exemption Certificate. 

What is Minnesota’s top income tax rate? 

Minnesota’s top marginal income tax rate is 9.85%. 

What is Minnesota’s SUTA wage base? 

Minnesota’s SUTA wage base is $42,000 per employee per year (2025). Verify at uimn.org. 

Does Minnesota have local payroll taxes? 

No. Minnesota does not impose local payroll taxes. 

What is Minnesota’s supplemental withholding rate? 

Minnesota uses a flat 6.25% for supplemental wages.