Severance Pay in Minnesota: Calculator & 2026 Guide
Calculate your estimated severance package in Minnesota. Minnesota state tax is 9.8%, for a combined 31.9% withholding rate.
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Estimate your severance package based on your salary, years of service, and industry
Minnesota Severance Pay Laws
Minnesota has up to 9.85% state income tax on high earners.
How Severance Is Taxed in Minnesota
| Tax Type | Rate | On $50,000 Severance |
|---|---|---|
| Federal (Supplemental) | 22.0% | $11,000 |
| Minnesota State Tax | 9.8% | $4,925 |
| Total Withholding | 31.9% | $15,925 |
| You Keep | 68.2% | $34,075 |
Minnesota Severance by Industry
Example: 5 years of service, $75,000 salary, individual contributor in Minnesota
| Industry | Weeks/Year | Gross Estimate | After Tax |
|---|---|---|---|
| Technology | 2-4 | $21,635 | $14,744 |
| Finance & Banking | 2-4 | $21,635 | $14,744 |
| Healthcare | 1-3 | $14,423 | $9,829 |
| Retail | 0.5-2 | $7,212 | $4,915 |
| Manufacturing | 1-3 | $14,423 | $9,829 |
| Consulting & Professional Services | 2-4 | $21,635 | $14,744 |
| Government | 1-2 | $7,212 | $4,915 |
| Nonprofit | 1-2 | $10,817 | $7,372 |
| Other Industry | 1-3 | $14,423 | $9,829 |
How to Negotiate Severance in Minnesota
In Minnesota, the standard federal WARN Act applies — 60 days notice for layoffs of 50+ employees at companies with 100+ workers.
- ✓ Ask for more weeks: Counter with 50% more than the initial offer
- ✓ Negotiate COBRA: Employer-paid health coverage for 6-12 months
- ✓ Get a written reference: Protect your future career prospects
- ✓ Review non-compete clauses: Negotiate restrictions before signing
- ✓ Consult a lawyer: Employment attorneys often negotiate 2-5x the original offer
Think Your Severance Is Too Low?
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Minnesota Severance Pay FAQ
Is severance pay required in Minnesota?▼
No, Minnesota does not have a state law requiring employers to provide severance pay. However, the federal WARN Act may require 60 days notice or pay in lieu of notice for large layoffs.
How is severance taxed in Minnesota?▼
Severance in Minnesota is taxed at 31.9% combined — 22% federal supplemental rate plus 9.8% Minnesota state income tax. On a $50,000 severance, you'd take home approximately $34,075.
What is the WARN Act in Minnesota?▼
The federal WARN Act applies in Minnesota, requiring employers with 100+ employees to give 60 days advance notice for mass layoffs of 50+ workers. Failure to provide proper notice can result in back pay for the notice period.
Can I collect unemployment and severance in Minnesota?▼
This depends on how your severance is structured. Some Minnesota workers can receive both simultaneously, while others may see a delay in unemployment benefits. If severance is paid as a lump sum, it's less likely to delay unemployment than if paid as continued salary. Contact Minnesota's unemployment office for specific guidance.
Major Employers in Minnesota
Severance Pay in Nearby States
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