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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.
2026 federal + state brackets + FICA — updates as you type.
State: Minnesota (pre-selected; change the dropdown for other states)
Not applied in this simplified model.
State tax uses your state's 2026 brackets, standard deduction, exemptions and credits for your filing status. City and county income taxes (for example NYC, Maryland counties, Ohio cities) are not included. FICA: Social Security 6.2% on wages up to $184,500 and Medicare 1.45% on all wages shown.
Applies Minnesota's 2026 brackets (5.35%–9.85%) for your filing status after the state standard deduction ($15,300 single, $30,600 married filing jointly). Rates: Minnesota Department of Revenue. The deduction phase-down above $244,400 AGI is applied; the Social Security subtraction and state credits are not modeled. Educational only.
Federal brackets (2026 · Single)
Net take-home
$50,040
Total tax: $12,960
Effective rate
20.6%
Marginal rate
18.8%
Income position
Taxable income $46,900 relative to bracket scale (cap $691,848).
| Taxable Income (Single) | Rate | Notes |
|---|---|---|
| $0 – $33,310 | 5.35% | Married jointly: up to $48,700 |
| $33,310 – $109,430 | 6.80% | Married jointly: $48,700 – $193,480 |
| $109,430 – $203,150 | 7.85% | Married jointly: $193,480 – $337,930 |
| Above $203,150 | 9.85% | Married jointly: above $337,930 |
| Component | Amount |
|---|---|
| Gross income | $70,000 |
| Less MN standard deduction (single) | -$15,300 |
| Minnesota taxable income | $54,700 |
| First $33,310 at 5.35% | $1,782 |
| $33,310–$54,700 at 6.80% | $1,455 |
| Total MN state tax | ~$3,237 |
| Effective state rate | ~4.62% |
| State | Top Rate | On $70,000 Wages, Single (approx) |
|---|---|---|
| Minnesota | 9.85% | ~$3,237 |
| Wisconsin | 7.65% | ~$2,647 |
| Iowa | 3.8% flat | ~$2,008 |
| North Dakota | 2.5% | ~$84 |
| 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. For single filers: 5.35% on taxable income up to $33,310, 6.80% on $33,310–$109,430, 7.85% on $109,430–$203,150, and 9.85% above $203,150. Brackets apply after the $15,300 standard deduction. A single filer with $70,000 in wages owes approximately $3,237 in Minnesota tax — an effective rate of about 4.6%.
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% top), Iowa (3.8% flat), and North Dakota (2.5% top). South Dakota has no income tax. For a single filer with $70,000 in wages, Minnesota state tax is approximately $3,240 vs about $2,650 in Wisconsin, $2,010 in Iowa, $84 in North Dakota and $0 in South Dakota.
Minnesota's standard deduction for 2026 is $15,300 for single filers, $30,600 for married filing jointly and $23,000 for head of household — slightly lower than the federal standard deduction. For high incomes the deduction shrinks by 3% of AGI above $244,400 plus 10% above $337,800, up to 80% of the deduction; the calculator applies this. Minnesota's dependent exemption is not applied.
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.