{
  "$comment": "Minnesota 2026: four brackets (5.35%-9.85%), standard deduction with high-income limitation, dependent exemption with step phase-out; Minnesota Paid Leave employee premium 0.44% from 1 Jan 2026.",
  "country": "us",
  "jurisdiction": "us-mn",
  "taxYear": "2026",
  "period": {
    "start": "2026-01-01",
    "end": "2026-12-31",
    "tz": "America/Chicago"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 2,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": "33310",
            "rate": "0.0535"
          },
          {
            "upTo": "109430",
            "rate": "0.068"
          },
          {
            "upTo": "203150",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ],
        "mfj": [
          {
            "upTo": "48700",
            "rate": "0.0535"
          },
          {
            "upTo": "193480",
            "rate": "0.068"
          },
          {
            "upTo": "337930",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ],
        "mfs": [
          {
            "upTo": "24350",
            "rate": "0.0535"
          },
          {
            "upTo": "96740",
            "rate": "0.068"
          },
          {
            "upTo": "168965",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ],
        "hoh": [
          {
            "upTo": "41010",
            "rate": "0.0535"
          },
          {
            "upTo": "164800",
            "rate": "0.068"
          },
          {
            "upTo": "270060",
            "rate": "0.0785"
          },
          {
            "upTo": null,
            "rate": "0.0985"
          }
        ]
      },
      "deductions": [
        {
          "type": "fixed",
          "id": "standard-deduction-3pct-part",
          "label": "Standard deduction (part reduced 3% above the first threshold)",
          "amount": {
            "single": "2802",
            "mfj": "2802",
            "mfs": "1401",
            "hoh": "2802"
          },
          "phaseout": {
            "single": {
              "threshold": "244400",
              "rate": "0.03",
              "floor": "0"
            },
            "mfj": {
              "threshold": "244400",
              "rate": "0.03",
              "floor": "0"
            },
            "mfs": {
              "threshold": "122200",
              "rate": "0.03",
              "floor": "0"
            },
            "hoh": {
              "threshold": "244400",
              "rate": "0.03",
              "floor": "0"
            }
          }
        },
        {
          "type": "fixed",
          "id": "standard-deduction",
          "label": "Standard deduction (remainder, reduced 10% above the second threshold, at most by 80%)",
          "amount": {
            "single": "12498",
            "mfj": "27798",
            "mfs": "13899",
            "hoh": "20198"
          },
          "phaseout": {
            "single": {
              "threshold": "337800",
              "rate": "0.1",
              "floor": "3060"
            },
            "mfj": {
              "threshold": "337800",
              "rate": "0.1",
              "floor": "6120"
            },
            "mfs": {
              "threshold": "168900",
              "rate": "0.1",
              "floor": "3060"
            },
            "hoh": {
              "threshold": "337800",
              "rate": "0.1",
              "floor": "4600"
            }
          }
        },
        {
          "type": "perPerson",
          "id": "dependent-exemption",
          "label": "Dependent exemption",
          "filer": {
            "single": "0",
            "mfj": "0",
            "mfs": "0",
            "hoh": "0"
          },
          "perDependent": "5300",
          "phaseout": {
            "single": {
              "threshold": "244500",
              "rate": "0.0424",
              "floor": "0",
              "reductionRounding": {
                "unit": "106",
                "mode": "up"
              }
            },
            "mfj": {
              "threshold": "366700",
              "rate": "0.0424",
              "floor": "0",
              "reductionRounding": {
                "unit": "106",
                "mode": "up"
              }
            },
            "mfs": {
              "threshold": "183350",
              "rate": "0.0848",
              "floor": "0",
              "reductionRounding": {
                "unit": "106",
                "mode": "up"
              }
            },
            "hoh": {
              "threshold": "305600",
              "rate": "0.0424",
              "floor": "0",
              "reductionRounding": {
                "unit": "106",
                "mode": "up"
              }
            }
          },
          "phaseoutPer": "perPerson"
        }
      ],
      "credits": []
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": [
      {
        "id": "paid-leave",
        "label": "Minnesota Paid Leave premium (employee share, maximum 50% of 0.88%)",
        "rate": "0.0044",
        "wageBase": "185000",
        "annualCap": null,
        "weeklyCap": null,
        "base": "ficaWages",
        "employerRate": "0.0044"
      }
    ]
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "mn-dependent-exemption-steps",
      "field": "params.incomeTax.deductions",
      "description": "Above the threshold the dependent exemption falls by 106 per dependent for each $2,500 (or fraction) of AGI, so taxable income jumps at each step and net pay can fall by up to about $10.44 per dependent per step."
    }
  ],
  "notModelled": [
    "Minnesota child tax credit and working family credit (refundable; schema credits are nonrefundable)",
    "Marriage credit (two earners), K-12, dependent care and other credits",
    "Additional standard deduction for age 65+/blind; itemized deductions",
    "Minnesota has no local income taxes",
    "Paid Leave small-employer reduced rate and employer-paid shares above the 50% minimum"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf",
      "title": "Minnesota DOR — Tax Year 2026 inflation-adjusted amounts (calendar tax year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "MoneyOtter computes exact bracket tax and rounds half-up to the cent (MN tax tables use $10/$20 bands)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.kind",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf",
      "title": "State personal income tax on wages computed by rate schedule — Tax Year 2026 Inflation-Adjusted Amounts — 290.06 subd. 2c bracket thresholds by filing status",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf",
      "title": "Tax Year 2026 Inflation-Adjusted Amounts — 290.06 subd. 2c bracket thresholds by filing status",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.06",
      "title": "Minn. Stat. 290.06 subd. 2c: rates 5.35%, 6.8%, 7.85%, 9.85%",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "MN DOR: Minnesota income tax rates and brackets",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf",
      "title": "Tax Year 2026 Inflation-Adjusted Amounts — 290.0123 standard deduction and limitation thresholds; 290.0121 dependent exemption and disallowance thresholds",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.0123",
      "title": "Minn. Stat. 290.0123 subd. 5: reduction = lesser of 3% of AGI over threshold 1 (up to threshold 2) plus 10% over threshold 2, or 80% of the deduction; MFS uses half the AGI amounts",
      "retrieved": "2026-10-07",
      "note": "Modelled exactly as two pieces: 3% x (T2 - T1) tapering at 3% from T1 to zero, plus the remainder tapering at 10% from T2 with a floor of 20% of the deduction. The $1,000,000 (indexed) full-80% rule is already reached by the 10% taper at a lower AGI for every status."
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.0121",
      "title": "Minn. Stat. 290.0121: dependent exemption reduced by 2 percentage points per $2,500 ($1,250 MFS) or fraction of federal AGI over the threshold",
      "retrieved": "2026-10-07",
      "note": "Schema gap: the taper reduces the total dependent exemption by 106 per step (2% of ONE exemption), exact for one dependent; with k dependents the statute reduces k x 106 per step, so the model overstates the exemption for families with 2+ dependents above the threshold (full phase-out at threshold + $125,000 regardless of k)."
    },
    {
      "field": "params.incomeTax.incomeBase",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "Form M1 starts from federal AGI; wages-only taxpayer: state wages",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf",
      "title": "No nonrefundable personal credit; refundable child tax credit / working family credit not modelled",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://www.revenue.state.mn.us/minnesota-income-tax-rates-and-brackets",
      "title": "Minnesota starts from federal AGI and follows federal exclusions for 401(k)/403(b)/457(b), HSA, FSA and cafeteria-plan amounts",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revenue.state.mn.us/press-release/2025-12-16/minnesota-income-tax-brackets-standard-deduction-and-dependent-exemption",
      "title": "MN DOR press release (16 Dec 2025): 2026 standard deduction $15,300/$30,600/$23,000; dependent exemption $5,300",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://mn.gov/deed/assets/paid-leave-overview-bookkeepers-presentation_tcm1045-715814.pdf",
      "title": "Minnesota Paid Leave (DEED): premiums start 1 Jan 2026 at 0.88% of wages up to the Social Security cap ($185,000); employers can deduct up to 0.44% from employees",
      "retrieved": "2026-10-07",
      "note": "Modelled at the maximum employee share (0.44%); employers may pay more. Small employers (<=30 employees) may get a 75% rate with employees paying the remainder — not modelled. Base: UI wages (Minn. Stat. 268.035 subd. 29), approximated by FICA wages."
    },
    {
      "field": "params.programmes",
      "url": "https://www.revisor.mn.gov/statutes/cite/268B.14",
      "title": "Minn. Stat. 268B.14 subd. 3 (employer pays at least 50%) and subd. 4 (wage maximum = OASDI maximum)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://www.revisor.mn.gov/statutes/cite/268B.01",
      "title": "Minn. Stat. 268B.01 taxable wages: OASDI maximum rounded to the nearest $1,000 ($184,500 -> $185,000)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://mn.gov/deed/paidleave/employers/premiums/",
      "title": "Minnesota Paid Leave — premium rate and contributions",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions",
      "url": "https://www.revisor.mn.gov/statutes/cite/290.0121",
      "title": "Minn. Stat. §290.0121 subd. 3 — the dependent exemption is reduced by the applicable percentage (2% per $2,500 or part, 4% per $1,250 MFS) of the TOTAL exemption, i.e. per dependent",
      "retrieved": "2026-10-08"
    }
  ]
}