MN · State Guide · Tax year 2026

Minnesota nanny tax guide

Everything you need to pay a nanny, caregiver, or household employee legally in Minnesota— the rates CareTax uses to calculate your pay runs, the forms you'll file, and the state portals you'll file them through.

SUI (new employer)

1%

On first $44,000

SDI

None

PFML

0.66%

On first $185,000

State income tax

Progressive

Bracketed

Minimum wage

$11.13/hr

Workers' comp

Required

Quick Facts

ItemValueNotes
Minimum Wage$11.41/hr$11.41/hr statewide; Minneapolis $16.37; St. Paul varies
Pay FrequencyMonthly minimum
Overtime Rules1.5x after 40 hrs/week; live-in: 1.5x after 48 hrs
Record Retention3 years

State Income Tax

Withholding Form: M-4

Unemployment Insurance

Registration: Register online

Workers' Compensation

Threshold: employee earns $1,000+/quarter

Paid Family & Medical Leave

Program: Paid Family and Medical Leave (PFML)

Yes -- 0.66% (eff April 1, 2026); up to 12 weeks; combinable to 20

ItemValue
Employee ContributionYes
Max Weeks12 weeks

Paid Sick Leave

Accrual Rate: 1hr/30hrs worked

Annual Cap: 48 hrs

Yes -- 0.66% (eff April 1, 2026); up to 12 weeks; combinable to 20

New Hire Reporting

Deadline: Within 20 days of hire

Report Online: File report

Special Requirements

Minneapolis requires additional pre-hire wage theft notice; sick leave balance must display on paystubs

Required Forms

Form M-4

Minnesota state income tax withholding form

Purpose: Employee completes for state tax withholding

Key Deadlines

DeadlineDateDescriptionFrequency
New Hire ReportingWithin 20 days of hireReport new employees within 20 days to the stateat-event

State Agencies

Sources

Frequently asked

Do I owe nanny tax in Minnesota?
If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Minnesota state unemployment kicks in once you exceed the state's wage threshold — typically the first $44,000 of wages.
What is the Minnesota SUI rate for a new household employer?
New household employers in Minnesota start at 1%, applied to the first $44,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
Does Minnesota require Paid Family and Medical Leave (PFML)?
Yes. Minnesota requires PFML contributions totaling 0.66% of wages up to $185,000 per employee. The employee share is 0.44% and the employer share is 0.22%.
How much state income tax do I withhold for a Minnesota nanny?
Minnesota uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
What forms do I need to file for a household employee in Minnesota?
Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Minnesota: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Minnesota state portals.