Minnesota State Income Tax Withholding
Reference Number: NFC-23-1683114178
Published: April 17, 2023
Effective: Pay Period 05, 2023
Summary
The income tax withholding formula for the State of Minnesota includes the following changes:
- The annual amount per exemption has changed from $4,450 to $4,800.
- The Single and Married tax withholding tables have changed.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
|
State Abbreviation: |
MN |
|
State Tax Withholding State Code: |
27 |
|
Acceptable Exemption Form: |
W-4MN |
|
Basis for Withholding: |
State or Federal Exemptions (see the Additional Information section) |
|
Acceptable Exemption Data: |
S/M, Number of Exemptions |
|
TSP Deferred: |
Yes |
|
Special Coding: |
None |
|
Additional Information: |
Employees who have not previously submitted a Form W-4MN and have submitted a 2020 or later Federal Form W-4, will default to Single and zero (S00). Employees who have not previously submitted a Form W-4MN and have not submitted a 2020 or later Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission. |
Withholding Formula (Effective Pay Period 05, 2023)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income:
Multiply the number of Allowances by $4,800
- Apply the taxable income computed in step 5 to the following tables to determine the annual Minnesota tax withholding:
Single Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $4,225 | $0.00 |
| Over $4,225 but not over $34,295 | 5.35% of excess over $4,225 |
| Over $34,295 but not over $102,985 | $1,608.75 plus 6.80% of excess over $34,295 |
| Over $102,985 but not over $187,565 | $6,279.67 plus 7.85% of excess over $102,985 |
| Over $187,565 | $12,919.20 plus 9.85% of excess over $187,565 |
Married Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $13,250 | $0.00 |
| Over $13,250 but not over $57,200 | 5.35% of excess over $13,250 |
| Over $57,200 but not over $187,860 | $2,351.33 plus 6.80% of excess over $57,200 |
| Over $187,860 but not over $318,220 | $11,236.21 plus 7.85% of excess over $187,860 |
| Over $318,220 | $21,469.47 plus 9.85% of excess over $318,220 |
- Divide the annual Minnesota tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Minnesota tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.