Minnesota payroll taxes for employers
What an employer in Minnesota pays on top of wages in 2026: state unemployment insurance (SUTA), a state payroll program, federal unemployment tax (FUTA) and the employer half of Social Security and Medicare.
State unemployment insurance (SUTA)
Employers in Minnesota pay unemployment insurance tax on the first $44,000 of each employee's wages in 2026. New employers pay the average rate for their industry. Established employers pay 0.4% to 9.3%, depending on their history.
State payroll programs
| Program | Employee | Employer | Wage cap |
|---|---|---|---|
| Minnesota Paid Leave Employers with 30 or fewer employees and an average wage at or below 150% of the state average pay 0.66%, at least a third of it from the employer. From January 1, 2027: 0.88% total. Rate unchanged for 2027. | 0.44% | 0.44% | $184,500 |
Employers withhold the employee share from paychecks and remit both shares to the state.
Federal taxes every employer pays
- Social Security: 6.2% from the employer and 6.2% from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each, with no cap. Withhold an extra 0.9% from an employee's wages above $200,000 (employee only).
- FUTA: 0.6% on the first $7,000 of each employee's wages after the normal state credit, up to $42 per employee.
Running payroll in Minnesota?
Recent changes
Last verified against the official source on October 9, 2026.
No changes recorded since we started tracking this page.
Sources
- US Department of Labor, Employment and Training Administration (Significant Provisions of State UI Laws, July 2026) · data as of July 1, 2026 · last checked October 9, 2026
- pl.mn.gov · data as of January 1, 2026 · last checked October 9, 2026
- Internal Revenue Service, Publication 15 (Circular E), 2026 · data as of January 1, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.