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Minnesota Bonus Paycheck Calculator

A bonus paid in Minnesota is withheld at the flat 22% federal supplemental rate in 2026 (37% on amounts above $1 million), plus FICA of 7.65% and Minnesota's graduated income tax (5.35% to 9.85%). Your final tax bill is settled when you file, not at withholding.

How are bonuses taxed in Minnesota?

In Minnesota, your employer withholds a flat 22% federal supplemental rate and 7.65% FICA, plus Minnesota's graduated income tax (5.35% to 9.85%), so roughly 30–35% of a bonus is typically withheld up front. Withholding isn't your final tax: at filing time a bonus is ordinary income, so any over-withholding comes back as a refund. Against the 4 states Minnesota borders, the same a $10,000 bonus is worth $6,355 here: South Dakota keeps $680 more ($7,035), North Dakota keeps $485 more ($6,840), Iowa keeps $300 more ($6,655) and Wisconsin keeps $150 more ($6,505). Iowa, North Dakota, South Dakota and Wisconsin are the only borders worth crossing for the tax alone.

Calculate your exact bonus take-home pay

Your bonus take-home

$3,205

from $5,000 bonusFor a $5,000 bonus · Minnesota · single

Take-home 64%Taxes 36%
Bonus amount$5,000
Federal tax−$1,100
State tax−$313
Social Security−$310
Medicare−$73
Net bonus$3,205

Estimate based on 2026 federal and Minnesota tax rules updated Oct 2026 How we calculate

Your details

Taxation method

Most common: a flat 22% federal rate is withheld on the bonus.

More options Base salary

What a bonus is actually worth in Minnesota

On top of a $75,000 salary in Minnesota, here is what each extra dollar survives federal tax, Minnesota income tax and FICA in 2026:

BonusGrossMinnesota taxYou keepShare kept
$5,000 bonus$5,000$340$3,17863.5%
$10,000 bonus$10,000$680$6,35563.6%
$25,000 bonus$25,000$1,700$15,88863.5%

Minnesota takes about 6.8% of that money on top of the 22% federal marginal rate and 7.65% FICA.

How Minnesota ranks on bonuses

Across all 50 states and DC, Minnesota ranks 46th for what a $10,000 bonus leaves in 2026. That is $210 less than the median state ($6,565), and $338 more than California, where the same a $10,000 bonus leaves $6,017.

The best outcome anywhere is $7,035 in Alaska and the other states with no wage income tax, $680 more than Minnesota keeps.

Minnesota bonuses against the states next door

Crossing a state line changes what the same bonus is worth without changing what you are paid. Here is a $10,000 bonus in Minnesota against the states it borders:

StateState income taxYou keepvs Minnesota
Minnesota$680$6,355—
Iowa$380$6,655$300 more
North Dakota$195$6,840$485 more
South DakotaNone$7,035$680 more
Wisconsin$530$6,505$150 more

How Minnesota bonus withholding works

Short answer: your employer withholds a flat 22% for federal income tax (the supplemental rate), plus 7.65% for Social Security and Medicare, plus Minnesota withholding on top: typically 30–35% of a Minnesota bonus withheld up front. Bonuses aren't actually taxed at a higher rate, though: at tax time they're ordinary income, and any over-withholding comes back in your refund. Here's how each piece works.

  • Federal supplemental rate: Most employers withhold federal income tax from bonuses at a flat 22%, $2,200 on a $10,000 bonus, or 37% above $1 million a year, regardless of your regular bracket.
  • Minnesota state tax: Bonus income is ultimately taxed through Minnesota's graduated income tax (5.35% to 9.85%). The calculator estimates the Minnesota share based on your inputs.
  • FICA taxes still apply: Social Security (6.2% up to the annual wage base) and Medicare (1.45%, plus 0.9% for high earners) come out of a bonus like any wage: $765 on $10,000.
  • Over-withholding is common: The flat 22% federal rate is often higher than your actual effective rate, and the difference comes back as a refund. In Minnesota the whole $10,000 nets $6,355 once state tax and FICA are in.

Your actual bonus tax depends on your total annual income, not the bonus alone: these figures assume a $75,000 Minnesota salary. Enter your own numbers above for an estimate that fits your situation.

Frequently Asked Questions

Typically 30–35%: a flat 22% federal supplemental withholding, 7.65% FICA, and Minnesota's graduated income tax (5.35% to 9.85%). Your actual tax owed depends on your full-year income and may be lower: the difference comes back as a refund when you file.

The IRS requires employers to withhold federal income tax from supplemental wages (including bonuses) at a flat 22% rate for amounts up to $1 million, rising to 37% above that. Your employer may alternatively add the bonus to your regular paycheck and withhold using the aggregate method. Worked through for Minnesota: a $10,000 bonus keeps $6,355: 63.6% of it, after $680 of Minnesota income tax.

It depends on your total annual income and tax bracket. If the 22% flat withholding rate is higher than your actual effective rate on the bonus, you'll get the difference back as a refund; if you're in a higher bracket, you may owe more. On a $75,000 salary in Minnesota, a bonus is taxed at about 22% federally plus 6.8% to Minnesota, so the 22% flat rate is close to the mark at that income.

Yes: as regular income. Some employers withhold Minnesota tax on bonuses at a supplemental rate, but what you ultimately owe is determined by Minnesota's graduated income tax (5.35% to 9.85%) applied to your full-year income.

Splitting a bonus across pay periods can reduce withholding if your employer uses the aggregate method, which annualizes your income, but it changes the timing, not the amount you ultimately owe. Where you live changes the amount: Minnesota ranks 46 of 51 on what a $10,000 bonus leaves, against $6,565 in the median state and $6,017 in California.

Against the 4 states Minnesota borders, the same a $10,000 bonus is worth $6,355 here: South Dakota keeps $680 more ($7,035), North Dakota keeps $485 more ($6,840), Iowa keeps $300 more ($6,655) and Wisconsin keeps $150 more ($6,505). Iowa, North Dakota, South Dakota and Wisconsin are the only borders worth crossing for the tax alone.

Minnesota's starting rate of 5.35% is higher than most progressive states (which typically start at 1%-3%). This means even someone earning $30,000 pays a higher effective rate in Minnesota than they would in many other states. A $100,000 earner pays an effective rate around 6%-7% (approximately $6,000-$7,000 annually), while the same earner in a flat-tax state like Pennsylvania would pay $3,070 (3.07% flat, though PA may have local EIT). The high starting rate means most earners pay relatively high taxes compared to other states.

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