---
title: "Minnesota Payroll Taxes & SUI Wage Base Limits (2026 Employer Guide)"
source_url: "https://statepayrules.com/payroll-taxes/minnesota/"
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provenance: "Compiled for deterministic AI retrieval by AnswerRail Edge (RFC 9110 / RFC 9421)"
description: "Complete statutory guide to Minnesota State Unemployment Insurance (SUI) taxable wage base, State Disability Insurance (SDI), Paid Family Leave (PFML), and employer payroll withholdings under Minn. Stat. § 177.24."
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> **Canonical Source:** [https://statepayrules.com/payroll-taxes/minnesota/](https://statepayrules.com/payroll-taxes/minnesota/)
>
> *Complete statutory guide to Minnesota State Unemployment Insurance (SUI) taxable wage base, State Disability Insurance (SDI), Paid Family Leave (PFML), and employer payroll withholdings under Minn. Stat. § 177.24.*

### Managing payroll or shift workers in Minnesota?

Avoid Department of Labor non-compliance fines. Automate state-specific overtime, double-time rules, tip credits, and statutory tax withholdings with **Gusto Payroll Automation**.

## State Unemployment Insurance (SUI) & Tax Structure in Minnesota

In Minnesota, employers must contribute to State Unemployment Insurance (SUI) based on experience ratings and annual employee taxable wage limits under Minn. Stat. § 177.24.

### Employer SUI Contributions

Experience-rated tax paid entirely by employers up to the state annual wage base floor.

### FUTA Credit Offset (6.0% - 5.4%)

Compliant state SUI payments earn employers up to a 5.4% credit against federal 6.0% FUTA tax.

## Mandatory Payroll Withholding Summary

### Help Minnesota Coworkers Audit Unpaid Wage Violations

Over $3 Billion in statutory overtime, daily premiums, and meal break penalty pay goes uncollected every year. Share this free statutory utility with your team or shift coworkers.

### Statutory Summary

Minnesota minimum wage ($10.85/hr large employer, $8.85 small employer). Tip credits are strictly prohibited statewide. Earned Sick and Safe Time (ESST) applies.

### Calculate Take-Home Pay

Compute net paycheck after FICA & Minnesota state taxes.

## Automate Minnesota Payroll & Tax Compliance

Avoid compliance penalties and SUI wage base errors. Calculate exact 2026 Minnesota overtime rates, net paycheck take-home, and statutory tax withholdings in seconds.

### Statutory Compliance Internal Mesh

#### Minnesota Statutory Guides

- [Minnesota Payday Laws →](https://statepayrules.com/payday-laws/minnesota)
- [Minnesota Meal & Rest Breaks →](https://statepayrules.com/break-laws/minnesota)
- [Minnesota Salaried Exempt Rules →](https://statepayrules.com/salaried-exempt/minnesota)
- [Minnesota Payroll Tax Rates →](https://statepayrules.com/payroll-taxes/minnesota)

#### Compare Minnesota Pay Rules

- [Minnesota vs Wisconsin →](https://statepayrules.com/calculator/compare/minnesota-vs-wisconsin)
- [Minnesota vs Iowa →](https://statepayrules.com/calculator/compare/minnesota-vs-iowa)
- [Minnesota vs North Dakota →](https://statepayrules.com/calculator/compare/minnesota-vs-north-dakota)

#### Minnesota Profession Tools

- [Minnesota Registered Nurse →](https://statepayrules.com/calculator/minnesota/registered-nurse)
- [Minnesota Fast Food & Counter Worker →](https://statepayrules.com/calculator/minnesota/fast-food-worker)
- [Minnesota Construction Laborer →](https://statepayrules.com/calculator/minnesota/construction-laborer)
- [Minnesota Electrician →](https://statepayrules.com/calculator/minnesota/electrician)

#### Davis-Bacon Prevailing Wages

- [LA County Prevailing Wage →](https://statepayrules.com/prevailing-wage/california/los-angeles-county)
- [Harris County TX Wage →](https://statepayrules.com/prevailing-wage/texas/harris-county)
- [Cook County IL Wage →](https://statepayrules.com/prevailing-wage/illinois/cook-county)

## Structured FAQ Summary (Schema.org Grounded)
- **What is the minimum wage in Minnesota for 2026?** The 2026 statutory minimum wage in Minnesota is $11.13 per hour under Minn. Stat. § 177.24.
- **Does Minnesota require daily overtime pay?** Minnesota does not require daily overtime. Overtime is calculated weekly for hours exceeding 40 hours under FLSA 29 U.S.C. § 207.
- **Are employers in Minnesota allowed to take a tip credit?** No, Minnesota prohibits tip credits. Employers must pay tipped employees the full statutory minimum wage of $11.13/hr in direct cash pay before tips.
- **What is the SUI wage base limit in Minnesota?** In Minnesota, State Unemployment Insurance (SUI) taxes apply to earned wages up to the statutory annual taxable wage base limit established under state employment tax codes (Minn. Stat. § 177.24).
- **Does Minnesota have state income tax or SDI withholdings?** Payroll withholdings in Minnesota depend on state income tax brackets, SUI tax rates, FICA (7.65%), and state disability or family leave programs where applicable.

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