Minnesota uses a graduated state income tax with four brackets in 2026, ranging from 5.35% to 9.85% — one of the higher top rates among US states. Minnesota's average annual salary is approximately $63,000. Minnesota is notable for taxing Social Security benefits for higher-income residents, though lower-income seniors may qualify for a partial exemption. Minnesota has no sales tax on groceries or prescription drugs. The Twin Cities metro drives the majority of Minnesota's economy through healthcare, tech, and financial services.
2025 federal + simplified state + FICA — updates as you type.
State: Minnesota (pre-selected; change the dropdown for other states)
This model uses a simplified flat effective Minnesota rate on federal taxable income — not full M1 bracket math. Social Security subtraction and local taxes are not modeled. Educational only.
Not applied in this simplified model (no credits). For illustration only.
State tax uses a flat effective rate on taxable income — not your actual state brackets. FICA: Social Security 6.2% on wages up to $176,100 and Medicare 1.45% on all wages shown.
SS $3,906.00 · Medicare $913.50
Federal 12.00% + state 7.00%
Estimated take-home
$49,299 / yr
$4,108 / month
Federal brackets (2025 · Single)
| Income (Single) | Rate | Notes |
|---|---|---|
| $0 – $31,690 | 5.35% | Lowest bracket |
| $31,691 – $104,090 | 6.80% | Most workers fall here |
| $104,091 – $193,240 | 7.85% | Upper-middle income |
| Above $193,240 | 9.85% | Highest bracket |
| Component | Amount |
|---|---|
| Gross income | $70,000 |
| First $31,690 at 5.35% | $1,695 |
| $31,691–$70,000 at 6.80% | $2,605 |
| Total MN state tax | ~$4,300 |
| Effective state rate | ~6.14% |
| State | Top Rate | On $70,000 (approx) |
|---|---|---|
| Minnesota | 9.85% | ~$4,300 |
| Wisconsin | 7.65% | ~$3,500 |
| Iowa | 6.0% flat | ~$2,700 |
| North Dakota | 2.5% flat | ~$875 |
| South Dakota | 0% | $0 |
Minnesota is one of the few states that taxes Social Security benefits. However, Minnesota offers a partial Social Security subtraction for lower-income seniors. Single filers with income below approximately $75,000 and married filers below $95,000 may qualify for a full or partial exemption. Above these thresholds, Social Security benefits are taxed at Minnesota's regular income tax rates — a significant consideration for retirees choosing where to live.
Minnesota has four graduated income tax brackets in 2026: 5.35% on income up to $31,690, 6.80% on $31,691–$104,090, 7.85% on $104,091–$193,240, and 9.85% on income above $193,240. On $70,000 income, Minnesota state tax is approximately $4,300 — an effective rate of about 6.14%.
Yes. Minnesota taxes Social Security benefits for higher-income residents. However, lower-income seniors may qualify for a partial or full exemption — single filers below approximately $75,000 and married filers below $95,000 may qualify. Above these thresholds, Social Security is taxed at regular Minnesota rates.
Minnesota's top rate of 9.85% is significantly higher than Wisconsin (7.65%), Iowa (6.0% flat), and North Dakota (2.5% flat). South Dakota has no income tax. On $70,000 income, Minnesota state tax is approximately $4,300 vs $875 in North Dakota and $0 in South Dakota.
Minnesota's standard deduction for 2026 is $14,575 for single filers and $28,470 for married filing jointly — slightly lower than the federal standard deduction. Minnesota also offers personal exemptions that further reduce taxable income.
Generally, you pay Minnesota income tax on income earned while physically working in Minnesota. Minnesota has reciprocity agreements with Michigan, North Dakota, Wisconsin, and Montana — residents of those states working in Minnesota pay tax only to their home state.
Minnesota state income tax returns are due April 15, 2026, the same as the federal deadline. Minnesota uses Form M1 for individual returns. Extensions are available but do not extend the payment deadline.
Educational estimates only. Not IRS advice.