Minnesota variant. This is a Minnesota-specific version of the Payroll Tax Estimator (Flat Rate), using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Payroll Tax Estimator (Flat Rate).
Minnesota employers owe federal payroll taxes (Social Security, Medicare, FUTA) plus state obligations (state income tax withholding and SUTA).
Payroll tax obligations in Minnesota
Employers match the 6.2% Social Security and 1.45% Medicare withheld from employees, and pay FUTA (0.6% on the first $7,000 after credits) plus state unemployment insurance.
Minnesota also requires state income tax withholding (5.35-9.85% across 4 brackets).
About taxes and housing in Minnesota
Minnesota has a graduated income tax with a high top rate approaching 10%.
Minnesota property taxes are near the national average and include a state-funded homestead credit refund for eligible owners.
Minnesota hosts an unusually large number of Fortune 500 headquarters and has a diverse economy spanning healthcare, retail, and agriculture.
Worked example: employer cost on $84,313
On a $84,313 salary, the employer's FICA match alone is 7.65% = $6,450, before FUTA and Minnesota unemployment insurance.
Quick reference
- State income tax: 5.35-9.85% across 4 brackets
- State sales tax: 6.875% (plus 1.17% avg local)
- Median home value: $340,000
- Median household income: $84,313
- Effective property tax rate: 1.05%
- Avg auto insurance: $1,500/yr
Frequently Asked Questions
What payroll taxes do Minnesota employers pay?
Employer FICA match (7.65%), FUTA, state unemployment, and state income tax withholding.
What is the employer FICA match?
Employers match 6.2% Social Security + 1.45% Medicare = 7.65% of wages.