TAXES 18-09, Minnesota State Income Tax Withholding

Published: January 23, 2018
Effective: Pay Period 01, 2018

Summary

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

The exemption allowance, per exemption, will increase from $4,050 to $4,150.
The Single and Married 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-4, W-4MN
Basis for Withholding:	State Exemptions
Acceptable Exemption Data:	S/M, Number of Exemptions
TSP Deferred:	Yes
Special Coding:	None

Withholding Formula (Effective Pay Period 01, 2018)

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 (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:
Exemption Allowance = $4,150 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 $2,350	$0.00
Over $2,350 but not over $28,240	$0.00 plus 5.35% of excess over $2,350
Over $28,240 but not over $87,410	$1,385.12 plus 7.05% of excess over $28,240
Over $87,410 but not over $162,370	$5,556.61 plus 7.85% of excess over $87,410
Over $162,370	$11,440.97 plus 9.85% of excess over $162,370

Married Tax Withholding Table

If the Amount of Taxable Income Is:	The Amount of Tax Withholding Should Be:
Over $0 but not over $8,850	$0.00
Over $8,850 but not over $46,700	$0.00 plus 5.35% of excess over $8,850
Over $46,700 but not over $159,230	$2,024.98 plus 7.05% of excess over $46,700
Over $159,230 but not over $275,550	$9,958.35 plus 7.85% of excess over $159,230
Over $275,550	$19,089.47 plus 9.85% of excess over $275,550

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) homepage. 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.

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