Minnesota Bonus Pay Tax Calculator

2026 Minnesota bonus withholding

Minnesota Bonus Pay Tax Calculator

Estimate a Minnesota employee's 2026 net bonus, compare federal withholding methods, include Minnesota Paid Leave, test annual wage caps, and gross up a promised take-home amount.

Estimate a bonus Calculate a Minnesota paycheck

Bonus inputs

Use gross-to-net for a planned payment or net-to-gross when a take-home amount was promised. Results update automatically.

Gross bonus amount Enter the taxable bonus to be paid.

Supplemental pay type

Federal withholding method

How the bonus is paid and recorded The 2026 Minnesota booklet permits either state method when regular and supplemental wages are paid together and separately listed. If they are not listed separately, aggregate withholding is required.

Regular wages had federal income tax withheld

The optional 22% federal method generally requires federal withholding from regular wages in the current or immediately preceding year.

Pay frequency

2026 Social Security wages already paid by this employer Used only for the $184,500 Social Security wage-base check.

2026 Medicare wages already paid by this employer Used for the employer's $200,000 Additional Medicare withholding threshold.

2026 supplemental wages already paid by this employer or common-control group The mandatory federal 37% rate begins only after this total passes $1 million.

Federal-taxable regular wages this pay period Used only for federal aggregate calculations.

Federal W-4 settings

Federal filing status

Use higher W-4 Step 2 checkbox tables

Annual credits from W-4 Step 3

Annual other income from W-4 Step 4(a)

Annual deductions from W-4 Step 4(b)

Extra federal withholding per regular check This appears in both sides of the aggregate subtraction and normally does not change the isolated bonus amount.

Extra federal withholding on this bonus

Minnesota withholding settings

Minnesota-taxable portion of this bonus Use 100% for a Minnesota resident or bonus fully assigned to Minnesota. Nonresidents should use the supported Minnesota-source portion.

Minnesota-taxable regular wages this pay period Kept separate from the federal regular-wage input for state sourcing accuracy.

W-4MN marital status

W-4MN withholding allowances Each allowance is $5,300 in the 2026 computer formula. Allowances do not reduce the 6.25% supplemental method.

W-4MN extra withholding per regular check Included in the full combined-check total; it normally cancels when isolating the bonus portion.

Extra Minnesota withholding on this bonus

Round Minnesota aggregate results to whole dollars

The 2026 booklet permits whole-dollar rounding. Leave clear for a cents-level estimate.

Valid Minnesota exemption or reciprocity Form MWR applies

Use only when payroll records support no Minnesota withholding. Form MWR can cover qualifying Michigan or North Dakota residents working in Minnesota.

Minnesota Paid Leave settings

Bonus is covered by Minnesota Paid Leave

Bonuses are generally wages for Paid Leave. Clear only when an exclusion or approved equivalent-plan treatment supports it.

Employer Paid Leave profile

Total Paid Leave premium rate The profile fills this editable total rate.

Employee Paid Leave deduction rate An employer may deduct up to 0.44%; enter 0 if the employer pays the employee share.

2026 Paid Leave wages before this bonus Minnesota's 2026 Paid Leave wage cap is $185,000.

Paid Leave-covered portion of bonus This coverage test is separate from Minnesota income-tax sourcing.

Employer cost estimate settings

Bonus is covered by Minnesota UI

Minnesota unemployment insurance is employer-paid and never reduces take-home pay.

2026 Minnesota UI wages before bonus

Minnesota UI wage base The official 2026 taxable wage base is $44,000.

Assigned new-employer or experience rate Illustrative 2026 professional-services new-employer rate. Enter the employer's actual determination.

2026 UI base tax rate

2026 additional assessment Applied to UI tax before assessments. The 2026 special assessment is 0%.

Minnesota UI-covered portion of bonus This changes employer cost only and is independent of Minnesota withholding and Paid Leave inputs.

2026 FUTA wages before bonus

Estimated net FUTA rate Default assumes the maximum credit; FUTA is employer-only and capped at $7,000 of wages.

Estimated net bonus

Flat federal and Minnesota supplemental methods.

Net bonus $0.00 Estimated paycheck withholding updates as inputs change.

Gross bonus $0.00

Total employee deductions $0.00

Effective deduction rate 0.00%

Total employer cost $0.00

Employee line	Amount

Federal method comparison

Method	Net bonus	Employee deductions

Employer-side estimate

Employer line	Amount

What this calculator includes

Federal supplemental methods

Model the optional 22% method, the mandatory 37% rate above $1 million of calendar-year supplemental wages, and the aggregate method using the 2026 Publication 15-T tables.

Minnesota's two DOR methods

Apply 6.25% when required or selected, or isolate the bonus portion of the 2026 aggregate computer formula using W-4MN status, allowances, pay frequency, and Minnesota-taxable regular wages.

Paid Leave and employer costs

Keep the employee Paid Leave deduction separate from employer Paid Leave, Minnesota UI, FUTA, and the employer FICA match, each with its own wage-base input.

This is a 2026 withholding estimate for taxable supplemental wages paid to a W-2 employee. Withholding is not final income-tax liability. Pretax deductions, retirement deferrals, special wage exclusions, nonresident sourcing, equivalent plans, garnishments, employer-specific rounding, payroll-system configuration, and later law changes can alter an actual paycheck. Confirm payroll with current IRS, Minnesota Department of Revenue, and DEED guidance.

Minnesota bonus withholding FAQ

How is a separately paid Minnesota bonus withheld?

The 2026 DOR booklet says to multiply the Minnesota-taxable supplemental payment by 6.25%, regardless of W-4MN allowances.

What if regular pay and the bonus are on one check?

If payroll records list them separately, Minnesota permits either aggregate Method 1 or 6.25% Method 2. If they are not separately listed, Method 1 is required.

Is 22% the employee's final federal tax rate?

No. It is an optional federal withholding method for eligible separately identified supplemental wages. The employee's return reconciles withholding with final tax liability.

Does Minnesota Paid Leave apply to bonuses?

Generally yes. Bonuses are wages for Paid Leave. In 2026 the regular-employer total is 0.88%, and up to 0.44% may be deducted from covered employee wages through the $185,000 cap.

How does the small-employer Paid Leave rate work?

A qualifying small employer's total rate is 0.66%. The employee deduction may still be up to 0.44%, leaving at least 0.22% for the employer when the maximum employee share is used.

Does Minnesota have a city or county wage tax?

No. Minnesota local governments do not levy local income taxes, so this calculator does not add a municipal wage-withholding field.

Can reciprocity remove Minnesota withholding?

Qualifying Michigan or North Dakota residents working in Minnesota can claim the reciprocity exemption with a properly completed annual Form MWR.

Can this calculator gross up a promised net bonus?

Yes. Net-to-gross mode solves for the gross amount under the selected federal method plus Minnesota withholding, FICA, Additional Medicare, and the employee Paid Leave premium.

Research sources

Primary official sources were checked July 20, 2026. Recheck year-specific rates and employer determinations before running payroll.

IRSPublication 15 (Circular E), 2026

IRSPublication 15-T, 2026

IRSSocial Security and Medicare withholding

Social Security Administration2026 contribution and benefit base

Minnesota Revenue2026 withholding instructions and tables

Minnesota Revenue2026 Form W-4MN

Minnesota RevenueAssigning employee income to Minnesota

Minnesota RevenueReciprocity and Form MWR

Minnesota DEED2026 Paid Leave premium rate notice

Minnesota DEEDSmall-employer Paid Leave rate

Minnesota UI2026 UI rates, assessments, and wage base

Minnesota UI2026 new-employer rates by industry

Minnesota LegislatureLocal income-tax restriction

TimeTrexMinnesota payroll tax calculator

Move from a bonus estimate to a complete Minnesota paycheck

Use the state-specific payroll calculator for a full paycheck estimate, or connect approved earnings, tax settings, direct deposit, pay stubs, and audit-ready records in TimeTrex payroll.

Calculate a Minnesota paycheck Explore TimeTrex payroll

Disclaimer: This calculator provides estimated withholding figures for educational and informational purposes only and does not constitute formal tax, legal, or accounting advice. Calculations reflect standard 2026 federal supplemental wage withholding methods, Minnesota Department of Revenue flat (6.25%) and aggregate rules, Minnesota Paid Leave premium rates, reciprocity agreements, and standard FICA parameters; actual employee net pay or total employer tax liability may vary based on pretax benefits, Form W-4MN allowances, specific state sourcing rules, or payroll-provider rounding.

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Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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Minnesota Bonus Pay Tax Calculator