Net Pay Changes in 2025
Net Pay Changes in 2025
Effective with January 10, 2025 paycheck, employees’ net pay may be affected by changes to deductions and taxes in the new year.
A version of the Net Pay Calculator updated with the 2025 tax rate changes has been posted on the Minnesota Management & Budget website website under Payroll Calculators on 12/31/2024. The Net Pay Calculator calculates an employee’s biweekly net pay in the same way SEMA4 calculates paychecks. The program only calculates state taxes for Minnesota residents.
Tax Withholding Changes:
Changes in Federal, Minnesota, and some other States tax tables will be effective on the January 10, 2025 paycheck.
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The amount of Federal and State withholding for any employee may increase or decrease depending on the employee’s amount of taxable gross pay.
The Federal supplemental tax rate remains unchanged at 22%.
Social Security withholding for employees will remain unchanged at 6.2% for 2024.
The maximum annual earnings subject to Social Security will increase from $138,600 to $176,100 for 2025.
Medicare continues at 1.45% on all earnings subject to Medicare, with an additional Employee Contribution Rate of 0.9% when the annual earnings subject to Medicare is $200,000 and above.
Minnesota supplemental tax rate will remain unchanged at 6.25%.
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