Minnesota's income tax starts at a relatively high 5.35%, even in its lowest bracket, and climbs to 9.85% at the top, making it one of the higher-tax states for ordinary earners.
A generous standard deduction softens the blow, but the 5.35% floor means even a modest salary pays a real state rate. Here is how the brackets work on your paycheck. See your exact take-home with the free Minnesota paycheck calculator.
How Minnesota's income tax works
Minnesota is progressive, with four brackets: 5.35% up to $32,570, 6.8% to $106,990, 7.85% to $198,630, and 9.85% above that (single filer). Unusually, even the lowest bracket is 5.35%, so there is no low-rate entry band. It applies after a standard deduction of $14,950 single / $29,900 married. There is no local income tax.
Because the bottom rate is already 5.35% and a typical worker reaches the 6.8% band, Minnesota's effective rate is higher than in most states even though the federal-sized deduction shields a chunk of income.
| Taxable income | Rate |
|---|---|
| $0 – $32,570 | 5.35% |
| $32,570 – $106,990 | 6.8% |
| $106,990 – $198,630 | 7.85% |
| Over $198,630 | 9.85% |
Your take-home on a $65,000 salary in Minnesota
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside Minnesota's progressive brackets from 5.35% to 9.85%.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| Minnesota income tax | $2,931 |
| Take-home pay | $51,851 |
| Percent of gross kept | 79.8% |
On a $65,000 salary a single filer owes about $2,931 in Minnesota income tax, an effective rate near 4.5%, and keeps roughly $51,851, or 79.8% of gross. The Twin Cities of Minneapolis and St. Paul offer strong wages that help offset a tax rate higher than most neighboring states. Compare with Wisconsin.
No low-rate bottom bracket
Minnesota's defining quirk is that even its first bracket is 5.35%, so unlike states that ease you in at 1% or 2%, every Minnesotan pays at least 5.35% on taxable income. The large standard deduction is what keeps the effective rate reasonable for middle earners.
Minnesota partially taxes Social Security but offers a subtraction that exempts it for lower- and middle-income retirees, so many older residents pay less than the wage rates suggest.
How to keep more of your Minnesota paycheck
Because Minnesota's marginal rate is 6.8% for a typical worker, pre-tax 401(k) and HSA contributions are especially valuable: each dollar dodges federal and Minnesota tax at once (and the HSA also skips FICA).