Minnesota Payroll Tax Calculator
What a Minnesota employer pays on top of wages in 2026: Social Security, Medicare, FUTA at 0.6%, MN unemployment tax at the 1.696% new-employer rate and the state's other employer programs, per paycheck and per year for 1 to 50 employees.
Reviewed by Slava Akulov, CEO & Co-Founder at Jupid · Last updated: October 2026
Pay type
Each employee is paid the amount above. Headcount sets which paid-leave employer shares apply.
Employer taxes per employee
$4,723
per year, $182 per paycheck
Effective employer tax rate: 9.45% of wages
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Breakdown per employee, per year
Social Security
6.2% to $184,500
$3,100.00
Medicare
1.45%, no cap
$725.00
FUTA
0.6% of $7,000
$42.00
MN SUTA (new employer)
1.696% of $44,000
$746.24
Minnesota Paid Leave (employer share)
0.44% to $185,000 (0.22% for small employers)
$110.00
Withheld from each employee (not an employer cost)
Per year, before income tax withholding. State amounts assume the largest employee share the program allows.
Payroll taxes only. Workers' comp insurance, health coverage and other benefits are separate costs.
Payroll Taxes Minnesota Employers Pay in 2026
For one employee paid $50,000 a year, a new Minnesota employer pays about $4,723 in payroll taxes, or 9.45% on top of wages. Social Security and Medicare are most of it; the unemployment taxes are capped at their wage bases.
| Tax | Employer rate, 2026 | Notes |
|---|---|---|
| Social Security | 6.2% of wages up to $184,500 | Matches the employee's 6.2%. |
| Medicare | 1.45% of all wages | No employer share of the 0.9% Additional Medicare Tax. |
| FUTA | 0.6% of the first $7,000 | Full 5.4% state credit; not a credit reduction state. |
| MN SUTA | 1.696% of the first $44,000 (new employer) | Industry-based: (1.00% + 0.40% base tax) × 1.14 + 0.10% for most industries; professional services 1.79%; construction higher. |
| Minnesota Paid Leave (employer share) | 0.44% to $185,000 (0.22% for small employers) | Paid Leave started January 1, 2026. The premium is 0.88% of wages up to the Social Security limit rounded to the nearest thousand ($185,000), and employers can deduct up to 0.44% from employees. Small employers (30 or fewer employees with average wages at or below 150% of the state average, $110,983.50 a year) pay 0.66%, so the employer share is 0.22%. Source |
Minnesota is not on the U.S. Department of Labor list of potential 2026 credit reduction states. Only California and the U.S. Virgin Islands are, so Minnesota employers keep the full 5.4% credit and pay 0.6% FUTA: $42 per employee per year. The final list is set after November 10, 2026.
A new Minnesota employer pays 1.696% on the first $44,000of each employee's wages, up to $746.24 per employee in 2026. After the new-employer period, the state assigns an experience rate based on benefits charged to your account, so a stable workforce usually pays less. Once you get your rate notice, that rate replaces the one used here.
- Register for an unemployment tax account with Minnesota Unemployment Insurance (DEED) and file wage reports and SUTA quarterly.
- Register for Minnesota income tax withholding (Minnesota DOR) and deposit it on the schedule the state assigns.
- Deposit federal withholding, Social Security and Medicare monthly or semiweekly, file Form 941 quarterly (the Q3 2026 return is due November 2, 2026) and Form 940 for FUTA once a year (due February 1, 2027 for 2026).
What Changes for Minnesota Employers in 2027
- The Social Security wage base rises to $192,300, so the employer share tops out at $11,922.60 per employee.
- The Paid Leave premium stays at 0.88% in 2027.
- Experienced employers get a new Minnesota unemployment tax rate for 2027 on their annual rate notice; use it from the first 2027 payroll.
Minnesota Payroll Tax FAQ
More Payroll Tools for Minnesota
Employee Cost Calculator
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Minnesota Paycheck Calculator
See your employee's take-home pay after federal and state withholding.
Minnesota Hourly Paycheck Calculator
Take-home pay for hourly staff, including overtime hours.
Minnesota 1099 Tax Calculator
Compare with what a contractor owes in self-employment tax.
Payroll Tax Due Dates 2026
Form 941 and 940 deadlines and monthly vs. semiweekly deposits.
Payroll Tax Calculator
The national employer payroll tax calculator with every state's SUTA rate.
Payroll Tax Calculators for Other States
SUTA wage bases run from $7,000 to $78,200 and several states add paid-leave premiums. Pick a state to see its 2026 employer taxes.
Official References
- IRS Publication 15 (2026), Employer's Tax Guide
Social Security, Medicare and FUTA rates, deposit schedules and Form 941/940
- U.S. Department of Labor: FUTA credit reductions
Potential 2026 credit reduction states
- U.S. Department of Labor: Significant Provisions of State UI Laws, January 2026
Taxable wage base and new-employer rate for every state
- Minnesota Unemployment Insurance (DEED)
Minnesota unemployment tax rates and registration
Estimates for tax year 2026, assuming every employee earns the same amount evenly through the year and the employer pays the minimum share of each paid-leave program. SUTA uses the 2026 new-employer rate; your assigned rate may differ. Rates checked against the agency sources above on October 30, 2026. Consult a payroll professional for filings.
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