PAYROLL TAX RATES
Minnesota payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Minnesota, each with its effective date and the agency page it comes from.
Unemployment insurance
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Minnesota Department of Employment and Economic Development (DEED), Unemployment Insurance Program (opens in a new tab) | Minnesota UI Program, Employer Handbook: New Employer Registration (opens in a new tab) | |
| Taxable wage base | $44,000 | Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) | |
| Wage base set each year | Yes | Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) | |
| New employer rate | 1% to 4.06%1.00% to 4.06% by industry (1.00% for most industries), plus the 0.40% base tax rate, a 14% additional assessment on that tax and the 0.10% workforce development assessment: 1.696% all-in at the 1.00% rateSurcharges not includedConstruction 1.98% to 8.9% | Minnesota UI Program, Tax Rate for New Employers (2026 rates) (opens in a new tab) | |
| Employee contribution | None | Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) | |
| When an employer becomes liable | Liable from the first covered wage paid in Minnesota: 'every individual or organization that pays covered wages in Minnesota must register', no later than the due date of the first quarterly wage detail report. An employer with covered employment at any time in a calendar year is covered for the whole year. Agricultural and domestic employment have their own tests. | Minnesota UI Program, Employer Handbook: New Employer Registration (opens in a new tab) | |
| Experience rate after | 2 years | Minnesota UI Program, Employer Handbook: Experience Rate Information (opens in a new tab) | |
| Quarterly report due | Quarterly wage detail report and payment due April 30, July 31, October 31 and January 31 (the next business day when the date falls on a weekend or legal holiday) | Minnesota UI Program, Employer Handbook: Due Dates (opens in a new tab) | |
| FUTA credit reduction | Not yet set | US DOL OUI, FUTA Credit Reductions (opens in a new tab) |
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Minnesota Department of Revenue (opens in a new tab) | Minnesota Department of Revenue, Withholding Tax (opens in a new tab) | |
| Withholding rates | 5.35% to 9.85% | Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab) | |
| Supplemental wages | 6.25% optional flat rate | Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab) | |
| Reciprocity | Michigan: Form MWRNorth Dakota: Form MWR | Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab) | |
| Employee's withholding form | Form W-4MN | Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab) | |
| Local income taxes | No | Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $11.41 | Minnesota Department of Labor and Industry, Minimum Wage in Minnesota (opens in a new tab) | |
| Next change | $11.87 | Minnesota Department of Labor and Industry, Minimum Wage in Minnesota (opens in a new tab) | |
| Tipped employees, cash wage | $11.41 | Minnesota Department of Labor and Industry, Minimum Wage in Minnesota (opens in a new tab) | |
| Rises with inflation | Yes | Minnesota Statutes 177.24, Payment of minimum wages (opens in a new tab) | |
| Local rates | Minneapolis: $16.37 in 2026, $17.02 from January 1, 2027, all employers, for work in the city (2 or more hours a week). St. Paul: $16.37 for employers with more than 100 employees (from January 1, 2026) and 6 to 100 employees (from July 1, 2026); $14.25 for 5 or fewer from July 1, 2026. | City of Minneapolis, Minimum Wage (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
Minnesota Paid Leave
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Minnesota Department of Employment and Economic Development (DEED), Minnesota Paid Leave (opens in a new tab) | Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab) | |
| Status | Contributing | Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab) | |
| Total rate | 0.88% | Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab) | |
| Employee share | Up to 0.44% | Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab) | |
| Employer share | 0.44% | Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab) | |
| Wage cap | $184,500 | Minnesota Statutes 268B.14, Premiums (opens in a new tab) | |
| Small employers | 30 or fewer employees: employer share 0.22%Small also needs an average wage no more than 150% of the state average ($27,745.88 a quarter) | Minnesota Statutes 268B.14, Premiums (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employee | Minnesota DLI, Work Comp: Who Needs Workers' Compensation Coverage? (opens in a new tab) | |
| State fund | None; private insurers | Minnesota DLI, Work Comp: Who Needs Workers' Compensation Coverage? (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Minnesota
Employer taxes and contributions on one employee's pay in Minnesota, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
Construction employerUses the construction new employer rate
- Employer taxes and contributions per check
- $239.68 to $320.18
- First check of the year
- Cost per check
- $2,547.37 to $2,627.87
- Pay included, first check
- Cost per year
- $65,642.24 to $67,177.14
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,494.38, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Minnesota unemployment | 1% to 4.06% on the first $44,0001.00% to 4.06% by industry (1.00% for most industries), plus the 0.40% base tax rate, a 14% additional assessment on that tax and the 0.10% workforce development assessment: 1.696% all-in at the 1.00% rateAssessments in the rows below | $23.08 to $93.69None after check 20 | $440.00 to $1,786.40 | Minnesota UI Program, Tax Rate for New Employers (2026 rates) (opens in a new tab); Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) |
| Base tax rate (all employers) | 0.4% on the first $44,000 | $9.23None after check 20 | $176.00 | Minnesota UI Program, Tax Rate for New Employers (2026 rates) (opens in a new tab); Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) |
| Workforce development special assessment (Minn. Stat. 116L.20) | 0.1% on the first $44,000 | $2.31None after check 20 | $44.00 | Minnesota UI Program, Tax Rate for New Employers (2026 rates) (opens in a new tab); Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) |
| Additional assessment (14% of the unemployment tax and base tax) | 0.196% to 0.6244% on the first $44,000 | $4.52 to $14.41None after check 20 | $86.24 to $274.74 | Minnesota UI Program, Tax Rate for New Employers (2026 rates) (opens in a new tab); Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab) |
| Minnesota Paid Leave, employer share | 0.44% on the first $184,500Small employers may owe less or none; see Paid family and medical leave above | $10.15 | $264.00 | Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab); Minnesota Statutes 268B.14, Premiums (opens in a new tab) |
| Employer taxes and contributions | $239.68 to $320.18 | $5,642.24 to $7,177.14 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,547.37 to $2,627.87 | $65,642.24 to $67,177.14 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 1.00% to 4.06% by industry (1.00% for most industries), plus the 0.40% base tax rate, a 14% additional assessment on that tax and the 0.10% workforce development assessment: 1.696% all-in at the 1.00% rate. The tax applies to the first $44,000 of each employee's wages a year. The base is reset each year from average wages. An experience rate follows after 2 years.
Yes: 5.35% to 9.85%. Supplemental wages: 6.25% optional flat rate.
$11.41 an hour. It rises to $11.87 on January 1, 2027. Some cities and counties set their own rates. See the table above.
Yes: Minnesota Paid Leave, 0.88% in total.
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Minnesota UI Program, Employer Handbook: New Employer Registration (opens in a new tab)
- Minnesota UI Program, Unemployment Insurance (UI) Tax Rates (opens in a new tab)
- Minnesota UI Program, Tax Rate for New Employers (2026 rates) (opens in a new tab)
- Minnesota UI Program, Employer Handbook: Experience Rate Information (opens in a new tab)
- Minnesota UI Program, Employer Handbook: Due Dates (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- Minnesota Department of Revenue, Withholding Tax (opens in a new tab)
- Minnesota Department of Revenue, 2026 Minnesota Income Tax Withholding Instruction Booklet and Tax Tables (PDF) (opens in a new tab)
- Minnesota Department of Labor and Industry, Minimum Wage in Minnesota (opens in a new tab)
- Minnesota Statutes 177.24, Payment of minimum wages (opens in a new tab)
- City of Minneapolis, Minimum Wage (opens in a new tab)
- Minnesota Paid Leave, Premium Rate and Contributions (opens in a new tab)
- Minnesota Statutes 268B.14, Premiums (opens in a new tab)
- Minnesota DLI, Work Comp: Who Needs Workers' Compensation Coverage? (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.