TAXES 16-11, Minnesota State Income Tax Withholding

Published: March 16, 2016
Effective: Pay Period 06, 2016

Summary

The income tax withholding formula for the State of Minnesota will include the following changes:

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-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S, M/Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Withholding Formula (Effective Pay Period 06, 2016)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal 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.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income:

    Exemption Allowance = $4,050 x Number of Exemptions.

  6. Apply the taxable income computed in step 5 to the following table(s) 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 $2,250

    $0.00

    Over $2,250 but not over $27,430

    $0.00 plus 5.35% of excess over $2,250

    Over $27,430 but not over $84,990

    $1,347.13 plus 7.05% of excess over $27,430

    Over $84,990 but not over $157,900

    $5,405.11 plus 7.85% of excess over $84,990

    Over $157,900

    $11,128.55 plus 9.85% of excess over $157,900

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $8,550

    $0.00

    Over $8,550 but not over $45,370

    $0.00 plus 5.35% of excess over $8,550

    Over $45,370 but not over $154,820

    $1,969.87 plus 7.05% of excess over $45,370

    Over $154,820 but not over $267,970

    $9,686.10 plus 7.85% of excess over $154,820

    Over $267,970

    $18,568.38 plus 9.85% of excess over $267,970
  7. Divide the annual Minnesota tax withholding by 26 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 NFC homepage. Click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.

Previous Tax Formula

Inquiries

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