Bonus Tax Calculator — Minnesota (2026)
Bonuses in Minnesota are taxed as supplemental wages: the employer usually withholds a flat 22% federal, plus 7.65% FICA and Minnesota state withholding. Withholding is not the final tax; the true cost is settled on your return. Enter your bonus to see both. Minnesota uses a progressive income tax with 4 brackets running from 5.35% up to 9.85%, applied after a state standard deduction of $14,575.
Minnesota Bonus Tax Calculator
The gross bonus before withholding.
Percentage method vs aggregate method
Under the percentage method the bonus is separated from regular pay and hit with the flat 22% federal rate (37% above $1 million of supplemental wages in a year). Under the aggregate method the employer combines the bonus with your normal check and withholds at your marginal rate — which can temporarily withhold far more than 22%.
Either way the bonus is ordinary income. If your marginal federal bracket is 24% or higher, the 22% flat withholding leaves you short at filing time; if you are in the 12% bracket, you are over-withheld and get it back as a refund.
The Minnesota layer on bonuses
Minnesota taxes bonus income at the same progressive brackets as salary — up to 9.85%. A $10,000 bonus therefore carries roughly $985 of Minnesota tax at the top rate, on top of federal and FICA.
Minnesota has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.
Reducing the tax on a Minneapolis bonus
Deferring part of the bonus into a 401(k) or HSA cuts federal and Minnesota income tax immediately, though FICA still applies. Some employers allow a separate bonus deferral election — ask payroll before the payment date, not after.
Timing matters too: pushing a bonus into January shifts the tax year, useful if this year included unusually high income from healthcare work or an equity event.
Local and payroll taxes Minnesota adds on top
Minnesota Paid Leave premiums start in 2026 and take roughly 0.44% of wages from employees. That deduction sits outside the federal and state income tax lines, so build it into your own budget on top of the numbers above.
Minnesota has no separate city or county income tax, so the state figure above is the full sub-federal income tax you pay.
Bonuses are wages, so every local layer that applies to your regular Minnesota paycheck applies to the bonus too — which is why a supplemental payment often nets a smaller share than your salary does.
Working across a state line from Minnesota
Minnesota holds income-tax reciprocity agreements with Michigan and North Dakota. If you commute between them, your wages are taxed only by your state of residence — file the exemption certificate with your employer so the wrong state is not withheld from every paycheck.
Remote and hybrid work complicates this further: most states tax income where the work is physically performed, so a Minneapolis resident spending part of the year at a client site in Wisconsin may owe a nonresident return there. Keep a day-count log if you split time between states.
The rest of your Minnesota tax bill
Minnesota charges a 6.875% state sales tax, homeowners pay an average effective property tax of 1.11% of market value, and the minimum wage in force during 2026 is $11.41 an hour.
Minneapolis and St. Paul add local taxes reaching roughly 9.0%.
Income tax is only one part of a state's take. Minnesota recovers revenue through sales and property tax as well, which is why headline income tax rates alone are a poor guide to how far a salary really goes. Minnesota taxes most retirement income but offers a Social Security subtraction that fully exempts benefits below income thresholds.
Minnesota vs Wisconsin on the same salary
On a $75,000 salary, a single filer keeps about $57,943 a year in Minnesota against roughly $58,705 in Wisconsin — a difference of $762, or $64 a month.
Effective combined rates are 22.7% in Minnesota and 21.7% in Wisconsin. Set that gap against living costs: index 97 here versus 96 there, with property tax at 1.11% and 1.61% respectively.
Minnesota income tax brackets 2026 (single filer)
| Taxable income | Rate |
|---|---|
| $0 – $31,690 | 5.35% |
| $31,690 – $104,090 | 6.80% |
| $104,090 – $193,240 | 7.85% |
| $193,240 and up | 9.85% |