If you’re wondering, “How do I figure out how much money I take home in Minnesota?” we’ve got you covered.
Use our simple salary paycheck calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in Minnesota.
Paycheck Calculator
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is $80,441.00 per year in the state of Minnesota, your net pay (or take home pay) will be $58,788.18 after tax deductions of 26.92% (or $21,652.82). Deductions include a total of [1] 13.01% (or $10,465.12) for the federal income tax, [2] 6.26% (or $5,033.97) for the state income tax, [3] 6.20% (or $4,987.34) for the social security tax and [4] 1.45% (or $1,166.39) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
Meanwhile, get ahead with our free resources:
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period. You can also check out our salary to hourly pay calculator and hourly salary calculator.
Overview of Minnesota Taxes
Minnesota’s income tax structure is progressive, with rates ranging from 5.35% to 9.85%. However, the state employs only four income tax brackets, resulting in scenarios where individuals with disparate incomes face the same tax rate.
This peculiarity is worth considering when planning your finances. For instance, a single filer with $35,000 of taxable income falls into the same tax bracket as someone earning $98,000. It’s a distinct aspect of Minnesota’s income tax setup.
Minnesota’s state sales tax rate stands at 6.875 %, higher than many other states. Moreover, local jurisdictions have the authority to impose additional sales taxes of up to 2%, resulting in an average combined state and local sales tax rate of 7.49%.
When it comes to property taxes, Minnesota’s average effective property tax rate is 1.11%. For retirees, there’s the Senior Citizen Property Tax Deferral Program, offering relief to those aged 65 or older with household incomes of $60,000 or less.
Estate taxes in the North Star State affect estates over $3 million, with tax rates ranging from 13% to 16%. Still, there is no inheritance tax in the state.
Median Household Income in Minnesota
Minnesota’s economy ranks 27th in the U.S. The state thrives on agriculture, ranking fifth in the nation with $17 billion in annual agricultural sales
In 2022, employment in the same year stood at 3,296,786, with a slight decline over the last five years. Leading employment sectors include Manufacturing, Real Estate and Rental and Leasing and Healthcare and Social Assistance.
Minnesota’s economic diversity is bolstered by both small and international enterprises, driving its impressive economic strength.
Impressively, the state reported a low 2.4% unemployment rate in 2022, ranking 3rd among the states.
Salaries in Minnesota vary widely based on position. However, the median household income can give you a glimpse at the average salary a household is earning in this state.
| Year | Median Household Income |
|---|---|
| 2021 | $80,441 |
| 2020 | $78,752 |
| 2019 | $81,426 |
| 2018 | $71,817 |
| 2017 | $69,975 |
| 2016 | $70,218 |
| 2015 | $68,730 |
| 2014 | $67,244 |
| 2013 | $64,324 |
| 2012 | $61,795 |
| 2011 | $57,820 |
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Understand Michigan’s tax structure
- Take advantage of available tax deductions
- Ensure that your employer withholds the correct amount of state income tax from your paychecks
- Consider contributing to retirement accounts such as a 401(k) or an Individual Retirement Account (IRA)
- Create a budget and track your expenses to identify areas where you can save money
- Explore investment opportunities that align with your financial goals
- Continuously educate yourself about personal finance topics and financial planning
