Minnesota Payroll Taxes for Employers (2026): SUTA and State Programs
Last updated: 2026-10-12 · 2026 rates checked against Unemployment Insurance Minnesota's own pages and the other official sources below
Minnesota employers pay state unemployment tax (SUTA) on the first $44,000 of each employee's wages in 2026. New employers get an industry-based rate rather than one statewide figure: New employers are assigned an industry-based rate; a 14% Additional Assessment applies in 2026. Base tax rate 0.40%, maximum experience rate 8.90%. Minnesota Paid Leave can add to the employer's cost in 2026, depending on headcount (details below). Every Minnesota employer also pays federal Social Security (6.2% up to $184,500), Medicare (1.45%) and FUTA (0.6% on the first $7,000).
What will payroll taxes cost me in Minnesota?
Enter your headcount and average pay to see the employer's share of Minnesota and federal payroll taxes for 2026. Change the SUTA rate to the one on your rate notice.
Minnesota employer payroll tax estimator · 2026
Runs in your browser · nothing is sent anywhere| Tax | Per year |
|---|---|
Minnesota unemployment (SUTA) 0.92% × first $44,000 per employee | $2,024 |
Federal unemployment (FUTA) 0.6% × first $7,000 after the full state credit | $210 |
Social Security (employer half) 6.2% × first $184,500 | $15,500 |
Medicare (employer half) 1.45% of all wages | $3,625 |
Minnesota Paid Leave 0.44% employer share — Standard rate 0.88%, employee up to 0.44% | $1,100 |
| Total employer taxes | $22,459 |
| Per employee | $4,492 |
Assumes every employee earns the average and works in Minnesota all year. Workers' comp premiums and benefits are extra — the payroll cost calculator adds them.
Minnesota unemployment insurance tax (SUTA) in 2026
- 2026 taxable wage base
- $44,000 per employee (10th highest of 51)
- New-employer rate
- Industry-based (no single statewide figure)
- How the new-employer rate works
- New employers are assigned an industry-based rate; a 14% Additional Assessment applies in 2026. Base tax rate 0.40%, maximum experience rate 8.90%.
- Experience-rated range (2026, as published)
- 0.4% to 9.3%. 0.40% base rate plus an experience rate of up to 8.90%, before the 14% Additional Assessment.
- 2025 average employer rate
- 0.92% of taxable wages (U.S. DOL)
- Employee contribution
- None — employer-paid only
Register with Unemployment Insurance Minnesota when you first pay wages in Minnesota; you get an account number for quarterly wage reports and tax payments.
Paid leave, disability and other Minnesota payroll programs
- Minnesota Paid Leave · wages up to $185,000Standard rate 0.88%, employee up to 0.44%Premiums started Jan. 1, 2026 (first due April 30, 2026). 0.88% for 2026 and 2027; small employers pay 0.66%. Employers may deduct up to 0.44% from employees. Wage cap is the Social Security limit rounded to the nearest $1,000 ($185,000).
Federal payroll taxes every Minnesota employer pays
- Social Security: 6.2% from you and 6.2% withheld from the employee, on wages up to $184,500 in 2026.
- Medicare: 1.45% each on all wages; withhold an extra 0.9% (employee only) on wages over $200,000.
- FUTA: 6.0% of the first $7,000 per employee, less up to 5.4% credit for Minnesota unemployment tax paid on time = 0.6%, or $42 per employee.
- Federal income tax withholding from each paycheck based on the employee's Form W-4.
Next for Minnesota employers: Minnesota paycheck calculator (employee withholding) · Minnesota new hire reporting · Minnesota payday & final paycheck rules · Minnesota workers' comp · full payroll cost calculator
Minnesota payroll tax FAQ
What is the Minnesota SUTA rate for new employers in 2026?
Minnesota doesn't use a single new-employer rate. New employers are assigned an industry-based rate; a 14% Additional Assessment applies in 2026. Base tax rate 0.40%, maximum experience rate 8.90%.
What is the Minnesota SUTA wage base for 2026?
$44,000 per employee. Once an employee's 2026 wages pass that amount, you stop paying Minnesota unemployment tax on them for the rest of the year. That is the 10th highest wage base of the 50 states and DC (the federal FUTA base is $7,000).
Do employees pay unemployment tax in Minnesota?
No. In Minnesota unemployment tax is paid only by the employer; it can't be deducted from pay. Only Alaska, New Jersey and Pennsylvania collect an employee share.
What other payroll taxes do Minnesota employers pay?
Besides unemployment tax: Minnesota Paid Leave: Premiums started Jan. 1, 2026 (first due April 30, 2026). 0.88% for 2026 and 2027; small employers pay 0.66%. Employers may deduct up to 0.44% from employees. Wage cap is the Social Security limit rounded to the nearest $1,000 ($185,000).
How much FUTA do Minnesota employers pay?
0.6% of the first $7,000 of each employee's wages — $42 per employee per year — after the full 5.4% credit for paying Minnesota unemployment tax on time. Minnesota is not a credit-reduction state for 2026.
How does my Minnesota SUTA rate change after the first years?
New employers keep the new-employer rate until they have enough history to be experience-rated (the timing is set by state law). After that, Unemployment Insurance Minnesota assigns a rate each year based on your layoffs and benefit charges; published 2026 rates run from 0.4% to 9.3% (0.40% base rate plus an experience rate of up to 8.90%, before the 14% Additional Assessment). Use the rate on your annual rate notice. The 2025 average employer rate in Minnesota was 0.92% of taxable wages.
Official Sources
Figures checked against these sources on 2026-10-12Related Resources on This Site
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Payroll taxes in other states
All states in one table, plus federal deposit rules and deadlines →
General information, not tax advice. Rates change every year; confirm yours on the notice from Unemployment Insurance Minnesota before filing.