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PaycheckDesk

Minnesota · tax year 2026

Does Minnesota tax tips and overtime?

Neither deduction reduces your state tax.

Minnesota taxes federal AGI less its own standard deduction — $15,300 single, $30,600 joint, $23,000 head of household — at graduated rates from 5.35% to 9.85%. It has no personal exemption, and the standard deduction itself starts shrinking above $244,400 of income. Neither federal deduction reduces Minnesota tax: state law is tied to the federal code as it stood on 1 May 2023, two years before these deductions existed.

What it means on a real paycheck

Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.

In Minnesota it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.

How Minnesota works out the tax

Minnesota charges graduated rates from 5.35% up to 9.85%, across four bands, after a standard deduction of $15,300 single or $30,600 filing jointly. It begins from your federal adjusted gross income and applies its own reliefs from there.

Worth knowing about Minnesota

The standard deduction shrinks at higher incomes

Above $244,400 it starts being taken back, though never entirely.

Your own numbers

Your gross pay before any taxes or deductions.

Married filing separately cannot claim these deductions at all, so it is not offered here.

Traditional, pre-tax. Lowers income tax but not Social Security or Medicare.

Pre-tax cafeteria-plan premiums. These lower income tax and FICA.

Take-home pay per paycheck (26 per year)

$1,896

$49,304 a year after taxes and deductions.

Minnesota taxes federal AGI less its own standard deduction — $15,300 single, $30,600 joint, $23,000 head of household — at graduated rates from 5.35% to 9.85%. It has no personal exemption, and the standard deduction itself starts shrinking above $244,400 of income. Neither federal deduction reduces Minnesota tax: state law is tied to the federal code as it stood on 1 May 2023, two years before these deductions existed. See what that costs you →

Where the money goes each year

Gross salary$62,000
Federal income taxTop rate applied: 12%−$5,260
Social Security−$3,844
Medicare−$899
State income tax (MN)Graduated brackets on $46,700 of state taxable income−$2,693
Take-home pay$49,304

Per paycheck

Gross$2,385
Taxes withheld−$488
Net$1,896

Estimate for tax year 2026 assuming the standard deduction, no dependents or credits, and even pay across the year. Your employer withholds using your Form W-4, so an individual paycheck can differ. Effective total tax rate: 20.48%. Not tax advice.

Where these figures come from

Minnesota’s rates and reliefs here were taken from Minnesota’s own publication and last checked on 2026-08-01. A state appears in this calculator only once its figures have been read off that state’s own paperwork and covered by tests — never estimated, and never copied from another site.

Figures on this page are for tax year 2026 and were last checked against the primary sources on 2026-07-31. See our sources. This is an estimate, not tax advice.

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