Tax rate used in calculating Minnesota state tax for year 2021
State Abbreviation: |
MN
|
State Tax Withholding State Code: |
27
|
Acceptable Exemption Form: |
W-4
|
Basis For Withholding: |
State Exemptions
|
Acceptable Exemption Data: |
S, M / Number of Exemptions
|
TSP Deferred: |
Yes
|
Special Coding: |
None
|
Additional Information: |
None
|
Withholding Formula >(Minnesota Effective 2021)<
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times >26< to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.
Exemption Allowance = >$4,350< x Number of Exemptions
- Apply the taxable income computed in step 5 to the following table to determine the annual Minnesota tax withholding.
Tax Withholding Table
Single |
If the Amount of
Taxable Income Is: |
The Amount of Minnesota
Tax Withholding Should Be: |
Over:
|
But Not
Over: |
|
|
|
Of Excess
Over: |
$ 0 |
$ 3,825 |
$ 0 |
plus |
0.0% |
$ 0 |
3,825 |
>31,055 |
0 |
plus |
5.35% |
3,825 |
31,055 |
93,265 |
1,456.81 |
plus |
6.80% |
31,055 |
93,265 |
169,865 |
5,687.09 |
plus |
7.85% |
93,265 |
169,865 |
and over |
11,700.19 |
plus |
9.85% |
169,865 |
Married |
If the Amount of
Taxable Income Is: |
The Amount of Minnesota
Tax Withholding Should Be: |
Over:
|
But Not
Over: |
|
|
|
Of Excess
Over: |
$ 0 |
$ >12,000 |
$ 0 |
plus |
0.0% |
$ 0 |
12,000 |
51,810 |
0 |
plus |
5.35% |
>12,000 |
51,810 |
170,140 |
2,129.84 |
plus |
6.80% |
51,810 |
170,140 |
288,200 |
10,176.28 |
plus |
7.85% |
170,140 |
288,200 |
and over |
19,443.99 |
plus |
9.85% |
288,200 |
- Divide the annual Minnesota tax withholding by >26< to obtain the biweekly Minnesota tax withholding.
More Payroll Information for Minnesota Small Business
What is the cost of using ezPaycheck payroll software
Quick Start Guide for New Payroll Software Customers
How to start payroll in mid-year
How to handle tips in restaurants
How to handle the local taxes
How to print paycheck on blank stock
How to add a customized deduction and withhold it automatically
How to set up payroll tax options for church and non-profits
How to handle paychecks for both employees and contractors
How to file tax forms
How to enter the paychecks for after the fact payroll
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