Minnesota Paystub Generator - 4 Tax Brackets, New PFML Deduction, Highest Benefit in America, Free Preview

What Are MN PFL/EE and MN PML/EE on Your Pay Stub? (The New Deductions That Just Started)

On January 1, 2026, Minnesota launched its Paid Family and Medical Leave program. Both contributions and benefits started on the same day, which is different from states like Maine (where contributions started a year before benefits) or Maryland (where the program hasn't started yet). Minnesota went live all at once.

Per the Minnesota Management and Budget payroll memo (January 6, 2026), state employees now see four new tax rows on their stubs:

The two employee lines (MN PFL/EE and MN PML/EE) add up to 0.44% of your wages. That's your share. The employer pays a matching 0.44% for a combined total of 0.88%. Small employers with 30 or fewer employees pay a reduced employer share of 0.22% (while the employee still pays 0.44%), bringing the small-employer total to 0.66%.

Private-sector payroll systems may label these differently. Some combine them into a single "MN PFML" line. Others show them as two separate lines matching the state's breakdown. Either way, the total employee deduction is 0.44%.

What You Get for That 0.44%

On a $2,800 biweekly gross, your PFML deduction is $12.32 per check (0.44%). Over a year, that's about $320. The max benefit if you take leave is $1,423 per week for up to 20 weeks ($28,460 max benefit). That's a roughly 89-to-1 return if you ever use the full benefit.

The Rate Is 46% Higher Than What Was Originally Proposed

When the Minnesota Legislature created the PFML program in 2023, the original bill estimated a rate of 0.6%. The actual rate announced for 2026 is 0.88%. Per NFIB (March 2026), that's a 46% increase from the initial rate that was proposed. The jump came after a third-party actuarial analysis determined the program needed more funding to cover projected claims. Workers are paying about 46% more than they expected when the program was first announced.

Minnesota's 4 Tax Brackets for 2026: 5.35% to 9.85% (Among the Highest in America)

Minnesota's top income tax rate of 9.85% is the fourth highest in the country. Only California (13.3%), Hawaii (11%), and New Jersey (10.75%) have higher top rates. The Minnesota DOR (December 16, 2025) adjusted the bracket thresholds upward by 2.369% for 2026 to prevent inflation from pushing workers into higher brackets on the same real income.

The standard deduction for 2026 is approximately $15,300 for single filers and $30,600 for married filing jointly. These are also inflation-adjusted. If an online calculator is using 2025 thresholds (which are 2.369% lower), the bracket crossover points are slightly off. On a $100,000 salary, the difference between 2025 and 2026 thresholds could shift a small amount of income from the 7.85% bracket into the 6.80% bracket, saving a few dollars.

The 9.85% bracket kicks in at about $183,340 for single filers. In the Midwest, only Minnesota charges this rate. Iowa is at 3.8% flat. Indiana is at 2.95% flat. Wisconsin's top rate is 7.65%. Michigan is 4.25% flat. For high earners, Minnesota's rate is in a different league from every neighboring state.

What Gets Taken Out of a Minnesota Paycheck: Two 2026 Examples

Minnesota stubs now carry six mandatory deduction lines for most workers: federal income tax, Social Security, Medicare, Minnesota state tax (across four brackets), MN PFL/EE, and MN PML/EE. That's two more lines than workers saw through the end of 2025, and it makes Minnesota one of the most complex stubs in the Midwest.

Minneapolis Professional, $35/hr, Biweekly

Setup: Annika works at a corporate office in downtown Minneapolis. She earns $35/hr, biweekly, 80 hours, files Single on Form W-4MN.

Rochester Healthcare Worker, $22/hr, Biweekly

Setup: David works at a medical facility in Rochester. He earns $22/hr, biweekly, 80 hours, files Single.

Look at the bottom of those stubs. Six mandatory deductions. The MN PFL/EE and MN PML/EE lines are small ($12.32 combined for the Minneapolis worker, $7.75 for Rochester), but they're brand new and they appear on every single Minnesota paycheck starting January 2026. If your previous pay stub tool doesn't know about Minnesota's PFML program, those lines are missing from your generated stub.

Estimates based on 2026 rates and standard withholding. Actual amounts depend on Form W-4MN and voluntary deductions. Use the generator for your exact numbers.

Minnesota Has the Highest PFML Benefit in America. Here's How It Compares.

Minnesota's $1,423 maximum weekly benefit is the highest of any state paid leave program in the country. That matters because the cost-to-benefit ratio is what determines whether the 0.44% deduction is worth it to you personally.

Minnesota workers pay less than Maine workers (0.44% vs. up to 0.50%) and get a higher max benefit ($1,423 vs. $1,103). Compared to Massachusetts (0.46% cost, $1,230 benefit), Minnesota pays slightly less and gets nearly $200 more per week. On the cost-to-benefit ratio alone, Minnesota's PFML program is the most favorable for workers of any state that's launched so far.

Minnesota Taxes Social Security (One of Only 13 States)

This surprises people who move to Minnesota from states like Iowa (which exempts all retirement income at 55+) or Florida (which has no income tax at all). Minnesota is one of only 13 states that includes Social Security benefits in taxable income.

A 2023 law does phase out the Social Security tax for most middle-income retirees. If your total income is below certain thresholds, part or all of your Social Security income is exempt from Minnesota tax. But high earners and retirees with substantial non-Social Security income (pensions, 401(k) distributions, investment income) may still owe the full 9.85% rate on their Social Security benefits.

For a retired couple collecting $40,000 in Social Security plus $60,000 in pension income, the Minnesota tax picture is significantly heavier than it would be in Iowa (where all of that retirement income is exempt at age 55+) or Louisiana (where the first $12,000 per person in retirement income is exempt at a 3% flat rate).

No Tip Credit: Minnesota Requires Full Minimum Wage for Tipped Workers

Minnesota is one of a small number of states with no tip credit whatsoever. Tipped workers must be paid the full state minimum wage, not a reduced tipped rate. In 2025, that meant $11.13/hr (the 2026 rate is CPI-adjusted, verify the exact number with the Minnesota Department of Labor and Industry).

Compare this to Michigan ($5.49 tipped wage for 2026), Massachusetts ($6.75), or the federal floor ($2.13). A Minnesota restaurant server starts at the full minimum wage before tips. This makes restaurant payroll in Minnesota more expensive than in most states and is one of the reasons the Twin Cities' restaurant industry closely follows minimum wage changes.

Minnesota Payroll Requirements 2026: What Every Employer Needs to Know

Minnesota SUI (State Unemployment Insurance), 2026

Employer-paid only. Minnesota's SUI taxable wage base is approximately $42,000 per employee, which is among the highest in the country. Most states use $7,000 to $15,000. The higher base means employers pay unemployment insurance on a much larger portion of each employee's wages. New employer rates start around 1.0%.

PFML Quarterly Reporting

Employers report and pay PFML premiums quarterly through the same system used for Minnesota unemployment insurance (MIWAM). Per pl.mn.gov, the first quarterly payment was due April 30, 2026 for wages paid January through March. The premium rate of 0.88% covers medical leave (0.61%) and family leave (0.27%).

Who Uses the Minnesota Paystub Generator?

Fortune 500 Workers (16 Headquarters in Minnesota)

Minnesota has more Fortune 500 headquarters per capita than any other state. UnitedHealth Group (#1 on the Fortune 500) operates out of Minnetonka. Target is headquartered in Minneapolis. 3M is in Maplewood. General Mills is in Golden Valley. Best Buy is in Richfield. US Bancorp, Medtronic, Xcel Energy, Hormel, CHS, Ameriprise, and Ecolab all call Minnesota home. Workers at these companies are among the first to see the new PFML deduction codes on their stubs, and their payroll systems were the first to integrate the 0.44% employee rate.

Mayo Clinic Workers (Rochester)

The Mayo Clinic employs over 40,000 people in Rochester, making it the largest private employer in southern Minnesota. Doctors, nurses, researchers, technicians, administrative staff, and facilities workers all earn Minnesota wages with the new PFML deduction on top of the four-bracket state tax. Travel nurses on 13-week assignments need stubs reflecting the current 2026 rates and the PFML line.

Twin Cities Metro Workers

Minneapolis and St. Paul anchor a metro area of 3.7 million people. Healthcare (Allina Health, Fairview, HealthPartners), tech (Optum, C.H. Robinson, Datalink), manufacturing (Honeywell, Toro), and retail (Target HQ, Best Buy HQ) employ hundreds of thousands. Renting in Uptown, Northeast Minneapolis, or the Lowertown area of St. Paul requires documented income, and landlords expect to see the correct Minnesota deductions.

Agricultural and Food Processing Workers

Minnesota is a top producer of corn, soybeans, and sugar beets. Hormel (Austin), CHS (Inver Grove Heights), Land O'Lakes (Arden Hills), and General Mills (Golden Valley) process food products across the state. Seasonal agricultural workers and year-round food processing employees need pay documentation for housing and financial applications.

Mining and Natural Resources Workers (Iron Range)

The Iron Range in northeastern Minnesota (Hibbing, Virginia, Eveleth, Ely) produces taconite for steelmaking. Cleveland-Cliffs and United Taconite employ thousands. Workers in this region often deal with seasonal layoffs and need clean pay documentation for unemployment claims and financial applications during off-seasons.

Small Business Owners and Contractors

A restaurant in Duluth. A construction crew in St. Cloud. A dental practice in Mankato. A brewery in Northeast Minneapolis. Minnesota small businesses now handle four brackets, PFML at 0.44% employee, ESST tracking, and (if they have fewer than 30 employees) the reduced 0.66% total PFML rate. Our generator handles all of it. Self-employed workers carry the full 15.3% FICA self-employment tax per IRS rules.

How to Create a Minnesota Pay Stub: 3 Steps

Minnesota payroll added two new PFML lines in 2026 on top of four progressive brackets. The generator handles all of it, including the correct employer-size-dependent PFML split.

1. Enter company and employee info
   Business name, address, employee name, address, pay period dates. Minnesota uses Form W-4MN for state withholding. Indicate employer size (30+ or under 30 employees) for correct PFML rate split.
2. Enter earnings and deductions
   Hourly rate or salary, hours worked, any overtime. Tips if applicable (full minimum wage, no tip credit). Add voluntary deductions. The tool runs your income through all four Minnesota brackets, adds the MN PFL/EE and MN PML/EE deductions, and calculates federal taxes automatically.
3. Free preview, then download
   Check every line. Gross pay, six mandatory deductions (federal, SS, Medicare, MN state, MN PFL/EE, MN PML/EE), voluntary deductions, net pay, YTD totals. Pay and download when satisfied.

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When You Need a Minnesota Pay Stub as Proof of Income

Renting in Minneapolis, St. Paul, Rochester, or Anywhere in Minnesota

Minneapolis neighborhoods like Uptown, Northeast, and North Loop have competitive rental markets. St. Paul's Lowertown and Cathedral Hill are similar. Rochester's market is driven by Mayo Clinic. Landlords want two to three recent stubs showing gross monthly income of 2.5 to 3 times the rent. Stubs should show the correct 2026 bracket withholding and the new PFML lines.

Mortgage Applications

Minnesota home prices in the western suburbs (Eden Prairie, Edina, Wayzata) and Rochester are above state averages. Lenders want your two most recent stubs plus W-2s. The new PFML deduction line shouldn't cause confusion as long as it's clearly labeled.

Minnesota DHS Programs (SNAP, Medical Assistance)

The Minnesota Department of Human Services requires current income documentation for SNAP, Medical Assistance (Minnesota's Medicaid), Minnesota Family Investment Program (MFIP), and other assistance programs through the ApplyMN portal. Pay stubs are the standard accepted income document.

Minnesota vs. Neighboring States: The Full 2026 Tax Comparison

The gap between Minnesota and its neighbors is enormous. A high earner in Minnesota pays 9.85% state income tax plus 0.44% PFML. The same earner in South Dakota pays 0%. In North Dakota (reciprocal with Minnesota), the flat rate is 1.95%. In Iowa, it's 3.8%. A worker earning $200,000 who lives in Minnesota and could move to South Dakota would save roughly $12,000-$15,000 per year in state income tax alone. This is why Minnesota experiences documented out-migration to lower-tax states, particularly among retirees heading to Florida or Arizona.

The trade-off: Minnesota ranks near the top nationally for public schools, healthcare access, infrastructure quality, and social services. The high tax rate funds real services. Whether the trade-off works for you depends on what you value and what stage of life you're in.