TAXES 17-14, Minnesota State Income Tax Withholding
Published: March 23, 2017
Effective: Pay Period 06, 2017
Summary
The Single and Married income tax withholdings for the State of Minnesota will increase as a result of changes to the formula for tax year 2017. 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, 2017)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- 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.
- 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.
- Multiply the adjusted gross biweekly wages times 26 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:
Exemption Allowance = $4,050 x Number of Exemptions.
- 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 $2,300
$0.00
Over $2,300 but not over $27,690
$0.00 plus 5.35% of excess over $2,300
Over $27,690 but not over $85,700
$1,358.37 plus 7.05% of excess over $27,690
Over $85,700 but not over $159,210
$5,448.08 plus 7.85% of excess over $85,700
Over $159,210
$11,218.62 plus 9.85% of excess over $159,210
Married Tax Withholding Table
If the Amount of Taxable Income Is:
The Amount of Tax Withholding Should Be:
Over $0 but not over $8,650
$0.00
Over $8,650 but not over $45,760
$0.00 plus 5.35% of excess over $8,650
Over $45,760 but not over $156,100
$1,985.39 plus 7.05% of excess over $45,760
Over $156,100 but not over $270,160
$9,764.36 plus 7.85% of excess over $156,100
Over $270,160
$18,718.07 plus 9.85% of excess over $270,160
- Divide the annual Minnesota tax withholding calculated in step 6 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 National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication 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 Internet using the Requester Console.