The Minnesota bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses, using the state’s supplemental withholding rate.
Behind the numbers
Behind the numbers
Updated: July 11, 2025
Does Minnesota tax bonuses?
Yes. Minnesota uses a flat supplemental withholding rate of 6.25% for bonuses and other qualifying supplemental wage payments when they’re paid separately from regular wages.
How to calculate bonus tax in Minnesota
To calculate bonus withholding in Minnesota, the method depends on the timing and how the bonus appears on payroll records:
- If paid separately from regular wages: Multiply the bonus by 6.25% — do not use the tax tables.
- If paid at the same time and listed separately: Choose either:
- Combine both amounts and apply withholding tables (aggregate method), or
- Use the withholding tables for regular wages and apply 6.25% to the bonus (split method).
If not listed separately on payroll records: Use the tax tables to determine withholding for the total payment.
What’s considered supplemental wages in Minnesota?
In Minnesota, supplemental wages include more than just bonuses. These types of payments can also include commissions, overtime pay, vacation pay, accumulated sick leave, and severance or back pay. Employers should also be aware that awards, prizes, and even certain nondeductible moving expenses may be treated as supplemental wages for withholding purposes. As with bonuses, the withholding method may vary depending on how these payments are issued and recorded.
How can employers in pay bonuses to employees?
- Check
- Direct deposit
- Pay card
Resources for Minnesota employers