How Minnesota withholds on a bonus
Minnesota's withholding instructions let employers withhold a flat 6.25% on supplemental wages paid separately from regular pay, a rate set between the state's 5.35% bottom bracket and its 6.8% second bracket. On a $10,000 bonus the percentage method withholds $2,200 federal, $620 Social Security, $145 Medicare and $625 Minnesota, leaving $6,410. Minnesota Paid Leave, collecting since January 2026, also takes up to 0.44% from a bonus ($44) and is not included; there are no local income taxes.
Under the aggregate method Minnesota applies its brackets to the combined paycheck, which for a $60,000 earner withholds the bonus at 6.8%, about $680 rather than $625; the federal line rises to about $2,700. A $60,000 single filer's actual Minnesota marginal rate is 6.8% (the bracket begins at $33,310 of taxable income), so the 6.25% flat rate slightly under-withholds.
What the withholding means for your Minnesota return
The state line on a Minnesota bonus withheld at 6.25% leaves a balance of about $55 per $10,000 for a filer in the 6.8% bracket, and more for one in the 7.85% bracket above $109,430; the federal side returns roughly $750 on $10,000 for a $60,000 earner, so the net effect at filing is still a refund for most. North Dakota and Michigan residents who earn a bonus in Minnesota are withheld for their home state under reciprocity; Wisconsin residents are not, since that agreement ended in 2010. The Minnesota paycheck calculator shows the marginal rates for any salary. Allowances on Form W-4MN do not reduce the flat 6.25% withheld from a separately paid bonus; they apply only under the aggregate method.