Minnesota Nanny Tax Guide
Minnesota has one of the more progressive income tax systems with rates reaching 9.85%. A paid family leave program is being implemented with benefits starting in 2026.
Minimum Wage
$11.13/hour
SUTA Rate Range
0.1% - 9.0%
Key Things to Know
- Progressive state income tax (5.35% - 9.85%)
- Paid Family and Medical Leave program coming
- State minimum wage is $11.13/hour
- High SUI wage base ($42,000)
Minnesota Employer Requirements
State Income Tax
Minnesota uses progressive tax brackets: 5.35% to $31,690, 6.8% to $104,090, 7.85% to $193,240, and 9.85% above. Standard deduction is $14,575 (single).
Paid Family Leave (Starting 2026)
Minnesota is implementing PFML with contributions starting in 2025. The 0.7% premium is split between employer and employee. Benefits begin in 2026.
State Unemployment Insurance
Employers pay SUI tax on the first $42,000 of wages. New employer rate is 1.0%, with rates ranging from 0.1% to 9.0% based on experience.
What will it cost?
Wondering what you'll actually owe as a Minnesota employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Minnesota and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Minnesota employer costs to all 50 states.
NannyKeeper handles Minnesota taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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