Minnesota · 2026 planning data

Minnesota SUTA rate and employer cost for 2026

Minnesota's 2026 unemployment-insurance cost is employer- or industry-specific. The sourced wage base is $44,000 per employee, so EmployerCost presents a 1.596%–10.602% planning range until the assigned rate is available.

Calculate a Minnesota estimate

How the Minnesota SUTA line is estimated

State unemployment tax applies only up to the annual UI wage base for each employee. For an employee earning at least $44,000, the planning calculation is:

Minnesota does not provide one universal new-employer percentage for every business. EmployerCost uses the official 1.596%–10.602% planning range until the assigned notice is available.

What this Minnesota estimate does not include

Minnesota employers owe 2 mandatory costs that this calculator does not add to the total, because they depend on facts the calculator never asks for — how many people the employer has, which city the work happens in, how much payroll it runs in a quarter. Adding them to every employer would overcharge the ones the rule does not reach, so they are named here instead of buried in a number.

• Paid Leave premium, employer share — about $264 a year for a $60,000 employee

  0.44% minimum employer share of the 0.88% premium, up to the Social Security wage base

  Applies when: Every employer. A small employer under 30 employees pays 0.22%.

  Source: Minnesota Department of Employment and Economic Development: Paid Leave

• Workforce Development Assessment — about $44 a year for a $60,000 employee

  0.10% on the same $44,000 unemployment taxable wage base the estimate already uses

  Applies when: Every contributory employer.

  Source: Minnesota Unemployment Insurance, Minn. Stat. 116L.20

What changes the real employer cost

• Minnesota's 2026 new-employer rates vary by industry. EmployerCost adds the 0.40% base rate, then applies the 14.00% additional assessment, producing a 1.596% to 10.602% total range.
• The experienced total range is 0.456% to 10.602% on the first $44,000. Use the assigned rate for an exact estimate; the 2026 special assessment is 0%.
• Employer Social Security, Medicare, and FUTA remain separate federal cost lines.
• Workers compensation in Minnesota runs 114% of the national median — 14% above it, 17th of 51 jurisdictions at $1.25 per $100 of payroll (Oregon DCBS 2024 premium rate ranking). That is a relativity between states, not your rate: class code, carrier, payroll exposure and experience modifier decide what you actually pay.
• Health benefits, retirement contributions, payroll software, and HR administration depend on the employer's choices.

Use the calculator's custom SUTA field whenever an official notice supplies a different rate. Read the SUTA rate guide and employer payroll tax guide before relying on a planning result.

Minnesota employer cost questions

What is the Minnesota SUTA wage base for 2026?

The sourced taxable wage base used by EmployerCost is $44,000 per employee. Wages above that cap are not included in this SUTA line, but can still affect Social Security, Medicare, benefits, workers compensation, and other costs.

What rate should a new Minnesota employer use?

Minnesota does not provide one universal new-employer percentage for every business. EmployerCost uses the official 1.596%–10.602% planning range until the assigned notice is available.

Is SUTA the full cost of a Minnesota employee?

No. Start with salary, then add employer FICA, FUTA, SUTA, workers compensation, benefits, and payroll administration. The Minnesota calculator keeps uncertain items as ranges.

Official sources

• Minnesota UI 2026 rates, industry table, and assessments
• U.S. Department of Labor — Significant Provisions of State UI Laws, effective January 2026

Verified against official sources July 30, 2026.

General planning information only. Not payroll, tax, legal, insurance, or HR compliance advice.