Reading a Minnesota pay stub, line by line
A Minnesota pay stub got a brand-new line on January 1, 2026 — the state's Paid Leave premium — alongside one of the country's higher starting income-tax rates. Here is what each line means in 2026:
MN State Income Tax ("MN SIT", "Minnesota Withholding"). Four brackets — 5.35% to $33,310, 6.80% to $109,430, 7.85% to $203,150, and 9.85% above (single, 2026; thresholds indexed 2.4% over 2025). The lowest rate is higher than the top rate in twenty-odd states, but it applies only after a $15,300 standard deduction (plus $5,300 per dependent), so a $60,000 single earner's effective state rate is about 4.3%. Withholding uses Form W-4MN (the federal W-4 alone doesn't work here): each allowance shelters $5,300, and the 2026 formula has a built-in $4,700 zero band — claim two allowances and your withholding matches the statutory tax almost to the dollar. Bonuses paid separately are withheld at a flat 6.25%.
MN Paid Leave (labels: "MN Paid Leave", "MN PFML", "MN PL"). Premiums began January 1, 2026: 0.88% of wages up to the $184,500 Social Security cap, of which the employer must pay at least half and may deduct up to 0.44% from you (maximum $811.80 a year). Many employers absorb more than half, so a stub showing 0.2% or 0% is not an error. DEED has already frozen the rate at 0.88% for 2027. By law your earnings statement must show both your deduction and the employer's contribution as separate items. Small employers — 30 or fewer employees that also meet a wage test — pay a lower total of 0.66%, but the most that can come out of your pay is still 0.44%.
What you will NOT see: a city or county income tax (none anywhere in Minnesota — Minneapolis and St. Paul regulate minimum wage and sick time, not income), state disability insurance (none; Paid Leave's medical leave fills that role), or an unemployment deduction (UI accrues to the employer under Minn. Stat. 268.051). No personal-exemption line either: Minnesota uses a standard deduction, not exemptions.
Plus the federal lines on every US stub: federal income tax, Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus 0.9% on wages over $200,000).
Minnesota paycheck facts — 2026
| Item | 2026 value |
|---|---|
| State income tax | 5.35% to $33,310 · 6.80% to $109,430 · 7.85% to $203,150 · 9.85% above (single, 2026) |
| State standard deduction | $15,300 single (2026) · $5,300 per dependent · no personal exemption |
| W-4MN allowance value | $5,300 each; formula zero band $4,700 · bonuses withheld at flat 6.25% |
| MN Paid Leave (employee) | Up to 0.44% of wages to $184,500 (half of 0.88%; max $811.80) — new Jan 1, 2026; rate frozen for 2027 |
| Employee-paid SUI / SDI | None — UI employer-only; no disability program |
| Local income taxes | None |
| Minimum wage | $11.41 statewide (all employers; $11.87 in 2027) · $16.37 Minneapolis and St. Paul · no tip credit |
| Pay frequency | At least every 31 days; commissions at least quarterly (Minn. Stat. 181.101) |
| Pay stub required? | Yes — every pay period, 12+ items incl. Paid Leave deduction and employer contribution, sick-and-safe-time balance (181.032) |
| Final paycheck | Fired: immediately on demand (24 hours, then daily penalty up to 15 days) · Quit: next payday, max 20 days (181.13, 181.14) |
What you actually take home in Minnesota (2026 estimates)
Estimated for a single filer taking the standard deduction, including federal income tax, Social Security, Medicare, Minnesota income tax (2026 brackets after the $15,300 state standard deduction), and the maximum 0.44% employee share of MN Paid Leave:
| Gross pay | Est. net per year | Net biweekly | Net monthly | Effective tax |
|---|---|---|---|---|
| $40,000 | $32,823 | $1,262 | $2,735 | 17.9% |
| $60,000 | $47,569 | $1,830 | $3,964 | 20.7% |
| $75,000 | $57,686 | $2,219 | $4,807 | 23.1% |
| $100,000 | $73,463 | $2,826 | $6,122 | 26.5% |
| State min wage, full-time ($11.41/hr) | $20,598 | $792 | $1,717 | 13.2% |
| Minneapolis / St. Paul min wage, full-time ($16.37/hr) | $28,386 | $1,092 | $2,365 | 16.6% |
Where the money goes at $60,000: Minnesota income tax $2,557 (4.3% of gross) plus Paid Leave up to $264 — about $2,821, or 4.7%. Federal income tax and FICA take the other 16%. If your employer absorbs the full Paid Leave premium, add $264 back.
Withholding check: with one W-4MN allowance the 2026 formula withholds about $2,917 at $60,000 — roughly $360 more than the $2,557 owed; with two allowances it lands within a few dollars of the true tax.
Methodology: 2026 federal brackets and $16,100 standard deduction (IRS Rev. Proc. 2025-32), FICA per SSA, Minnesota 2026 rate schedule (Minn. Stat. 290.06 subd. 2c, inflation-adjusted amounts published by DOR December 16, 2025) after the $15,300 single standard deduction, MN Paid Leave employee share 0.44% to $184,500 (Minn. Stat. 268B.14; DEED). Estimates only — your withholding depends on your W-4/W-4MN allowances, credits, pre-tax benefits, and how much of the Paid Leave premium your employer covers.
What Minnesota jobs pay (BLS, May 2025)
| Occupation | Median hourly | Median annual |
|---|---|---|
| Registered nurse | $48.80 | $101,510 |
| Software developer | $62.52 | $130,050 |
| Elementary school teacher | — | $76,350 |
| Truck driver (heavy) | $29.80 | $61,990 |
| Construction laborer | $28.97 | $60,260 |
| Customer service rep | $23.46 | $48,800 |
| Waiter / waitress (tips included) | $12.25 | $25,470 |
| Retail salesperson | $17.49 | $36,370 |
Minnesota's median hourly wage across all occupations is $27.36 — 12% above the national median of $24.51. Its construction laborers earn a $28.97 median — a good wage, though five states here pay more, led by Hawaii's $37.07 — while its waiters' $12.25 median sits just above the $11.41 state floor — a sign that most of the state's servers work outside the two big cities.
Minnesota's workforce in numbers
- 5.8 million residents, civilian labor force of 3.1 million, unemployment 4.3% (Census 2025 estimate; BLS, July 2026 preliminary)
- 453,181 self-employed (nonemployer) businesses (Census, 2023) — about one for every 13 residents, and 2.9 times the number of businesses with employees
- 2.8 million people on employer payrolls at 154,455 establishments, earning $192 billion a year (Census County Business Patterns, 2023)
- Mean annual wage: $71,160 (BLS OEWS, May 2025)
Minnesota pay rules — the answers people actually need
Final paycheck: fired means paid on demand. Under Minn. Stat. 181.13, wages earned at the time of discharge are "immediately due and payable upon demand" — make the demand in writing; if the employer misses 24 hours, it owes you a full day's average wages for every day late, up to 15 days. If you quit, final pay is due on the next regularly scheduled payday, or the one after if that falls within five days of your last day — never more than 20 days (181.14).
Pay frequency: at least once every 31 days on a regular payday set in advance; commissions at least every three months (181.101). First-period wages are due by the first regular payday after you start.
Is a pay stub required? Yes — every pay period, and Minnesota's list is long (181.032): your name, rate and basis of pay, hours worked (unless exempt), gross and net pay, each deduction, the pay-period dates, the employer's legal name and address, your sick-and-safe-time balance (since 2024), and — new for 2026 — your Paid Leave deduction and the employer's Paid Leave contribution as separate items. Electronic statements are allowed if you can access and print them.
W-4MN is required. Because the federal W-4 no longer has allowances, Minnesota needs its own form; without one, the employer withholds as single with zero allowances. Michigan and North Dakota residents working in Minnesota can claim reciprocity on Form MWR.
Minneapolis and St. Paul vs the state minimum wage (2026)
Minnesota has run one statewide minimum wage for all employers since 2025 — $11.41 for 2026, indexed each January 1 (DLI has already posted $11.87 for 2027) — and it allows no tip credit. The two big cities are 43% higher:
| Jurisdiction | 2026 rate | Effective | Notes |
|---|---|---|---|
| Minnesota (all employers) | $11.41 | Jan 1, 2026 | $11.87 on Jan 1, 2027 · training wage $9.31 (under 20, first 90 days) |
| Minneapolis (all employers) | $16.37 | Jan 1, 2026 | Indexed every Jan 1 |
| St. Paul — 101+ employees | $16.37 | Jan 1, 2026 | Indexed every Jan 1 |
| St. Paul — 6–100 employees | $16.37 | Jul 1, 2026 | Reached parity with large employers |
| St. Paul — 5 or fewer | $14.25 | Jul 1, 2026 | Steps up each July 1 until parity |
A full-time Minneapolis minimum-wage job grosses $34,050 — $10,317 more than the same job in Rochester or Duluth at the state rate. Tipped servers in both cities must receive the full $16.37 before tips.
How Minnesota compares with its neighbors (take-home on $60,000, 2026 est.)
| State | Est. net/year | Difference vs MN |
|---|---|---|
| Minnesota | $47,569 | — |
| Wisconsin | $48,320 | +$751 |
| Iowa (flat 3.8%) | $48,762 | +$1,192 |
| North Dakota | ~$50,390 | +~$2,821 |
| South Dakota (no state income tax) | ~$50,390 | +~$2,821 |
| Illinois (flat 4.95%) | $47,565 | −$5 |
Minnesota's $15,300 standard deduction is the most generous of its neighbors, which is why its 5.35% starting rate costs a $60,000 earner about the same as Illinois's flat 4.95% and only $500 more than Wisconsin. North Dakota's 2026 zero bracket reaches well past $44,000 of taxable income, so a $60,000 single filer there pays no state tax at all.
(Iowa, North Dakota and South Dakota figures are directional estimates pending those pages' full data workup.)
FAQ
What is MN Paid Leave on my paycheck?
Minnesota's new paid family and medical leave program, which started charging premiums on January 1, 2026. The total premium is 0.88% of wages up to the $184,500 Social Security cap; your employer must pay at least half and may deduct up to 0.44% from you — at most $811.80 a year, or $264 on a $60,000 salary. Employers can choose to cover more, so a lower deduction is not an error. The rate stays 0.88% for 2027.
How much tax comes out of a paycheck in Minnesota?
A single filer earning $60,000 keeps about $47,569 a year — roughly $1,830 per biweekly check, a 20.7% effective rate covering federal income tax, Social Security, Medicare, Minnesota income tax (about $2,557 after the $15,300 standard deduction), and the maximum 0.44% Paid Leave deduction. Minnesota has no local income taxes, disability, or employee unemployment deductions.
How many allowances should I claim on Form W-4MN?
Each Minnesota allowance shelters $5,300 a year, and the 2026 withholding formula already includes a $4,700 zero band — so a single filer with no dependents who claims two allowances ($10,600 + $4,700 = $15,300, the standard deduction) has withholding that matches the statutory tax almost exactly. One allowance over-withholds by roughly $360 at $60,000; zero allowances by about $720.
When is my final paycheck due in Minnesota?
If you are fired, immediately upon your demand — the employer has 24 hours after a written demand, then owes a day's average wages for each day late, up to 15 days (Minn. Stat. 181.13). If you quit, by the next regular payday, or the following one if that payday is within five days of your last day, but never more than 20 days (181.14).
Does my employer have to give me a pay stub in Minnesota?
Yes, every pay period. Minn. Stat. 181.032 requires the earnings statement to show your name, rate and basis of pay, hours worked, gross and net pay, each deduction, the pay-period dates, the employer's name and address, your earned sick-and-safe-time balance, and — from 2026 — your Paid Leave deduction and the employer's Paid Leave contribution as separate items.
What is the minimum wage in Minneapolis and Minnesota in 2026?
Minnesota's statewide minimum is $11.41 for all employers from January 1, 2026, rising to $11.87 on January 1, 2027; there is no tip credit. Minneapolis and St. Paul (101+ employees) require $16.37; St. Paul's small employers reached $16.37 on July 1, 2026 and its micro employers (5 or fewer) $14.25.
Does Minnesota have a local income tax or a state disability deduction?
No to both. No Minnesota city or county taxes income, and the state has no disability insurance program — MN Paid Leave's medical leave covers that role. Unemployment insurance is paid entirely by employers.