Minnesota vs Wisconsin: Taxes & Take-Home Pay 2026

Why the St. Croix River matters for taxes

Thousands of people live in Hudson, River Falls or Superior, Wisconsin, and work in the Twin Cities or Duluth. Minnesota's tax rates are higher at almost every income: 5.35% to 9.85%, against 3.5% to 7.65% in Wisconsin. Where you work can matter as much as where you live, though, because the two states no longer have an income tax reciprocity agreement.

Brackets, deductions and payroll programs

Minnesota Paid Leave premiums began January 1, 2026, at 0.88% of wages. Employers may deduct up to half (0.44%) from employee pay. Wisconsin has no comparable employee deduction. Wisconsin's standard deduction phases down to zero as income rises, and the calculator table above uses the full amount, so it understates Wisconsin tax for middle and higher earners.

Worked example: a $110,000 salary

A single filer earning $110,000 who lives and works in Minnesota pays $5,957 in state income tax and $484 in Paid Leave premiums. Living and working in Wisconsin, state tax falls between $4,488 (with the full standard deduction) and $5,206 (with none). At this income most of Wisconsin's sliding-scale deduction has already phased out, so expect a figure near the upper end.

At $45,000, Minnesota tax is $1,589. Wisconsin tax is about $1,220 with the full standard deduction; part of the deduction has already phased out at this income, so the real Wisconsin figure is somewhat higher and the gap with Minnesota is narrower than these two numbers suggest.

Living in Wisconsin and working in Minnesota

Wisconsin's reciprocity agreements cover Illinois, Indiana, Kentucky and Michigan, not Minnesota. A Hudson resident working in Minneapolis therefore has Minnesota tax withheld and files a Minnesota nonresident return. They then file a Wisconsin resident return and claim Wisconsin's credit for net tax paid to another state. The result is that you pay roughly the higher of the two states' tax on those wages, which is usually Minnesota's.

Wisconsin's withholding guide sets out a special arrangement: Wisconsin withholding is not required on a Wisconsin resident's Minnesota wages if those wages are subject to Minnesota withholding. If Wisconsin tax is not withheld and you expect to owe $500 or more with your Wisconsin return, you must make estimated payments. This matters when your Wisconsin tax comes out higher than your Minnesota tax, which can happen at incomes where Wisconsin's standard deduction has phased out.

A Minnesota resident working in Wisconsin is in the mirror position. Wisconsin taxes the wages and Minnesota gives a credit, so most Minnesotans see no saving from a Wisconsin job.

Retirees: Social Security and pensions

For a higher-income retiree, Wisconsin's full Social Security exemption and lower rates usually win. Minnesota's subtractions make it competitive for moderate incomes.

• Wisconsin does not tax Social Security. From 2025, people aged 67 or older can subtract up to $24,000 of retirement income.
• Minnesota can tax Social Security, but its simplified subtraction removes all federally taxable benefits for 2026 until income passes $86,410 (single or head of household) or $110,780 (married joint), and then phases out.
• Minnesota's public pension subtraction is up to $13,850 single or $27,690 joint for 2026, for qualifying government pensions.

Moving between the two states

Wisconsin part-year residents file Form 1NPR. Minnesota part-year residents file a Minnesota return with its part-year schedule, which apportions tax by Minnesota-source and resident-period income. Each state taxes what you earned while living there plus income sourced to it. If you keep a Minnesota job after moving to Wisconsin, Minnesota keeps taxing the wages and Wisconsin credits that tax from the move date. Plan estimated Wisconsin payments if your employer will not withhold for Wisconsin.