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How to Calculate 2021 Minnesota State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2021 Minnesota state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Minnesota small businesses here.
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Minnesota STATE TAX TABLES

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)<
  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.

  2. 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.

  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.

  4. Multiply the adjusted gross biweekly wages times >26< to obtain the gross annual wages.

  5. 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

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Minnesota tax withholding.

  7. 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

  8. Divide the annual Minnesota tax withholding by >26< to obtain the biweekly Minnesota tax withholding.
 
 

More Payroll Information for Minnesota Small Business

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  • How to file tax forms

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