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Household Employer Tax Obligations in Saint Paul, MN 2026

Calculate your household employer tax obligations tax savings in Saint Paul, Minnesota. With Minnesota's 7.85% state tax rate, your combined savings are higher.

Minnesota Tax Context

State Income Tax
7.85%
Local Income Tax
None
Property Tax Rate
1.12%
Tax Burden
High
$1,493
Est. Total Savings
No Limit
Max Deduction
Both Methods
Deduction Type
29.9%
Combined Tax Rate

Household Employer Tax Obligations Savings Calculator for Saint Paul

$
$

Federal Savings

$1,100

22% bracket

Minnesota State

$393

7.85% rate

Local Tax

$0

0% rate

Total Savings

$1,493

29.9% combined

At a 29.9% combined tax rate in Saint Paul, every $1,000 in deductions saves you $299 in taxes.

Savings by Tax Bracket in Saint Paul

10%
$893
12%
$993
22%
$1,493
24%
$1,593
32%
$1,993
35%
$2,143
37%
$2,243

Includes 7.85% Minnesota state tax on top of federal savings.

Eligibility Requirements

Household employers who pay a nanny, housekeeper, or other household worker $2,700+

  • 1Must pay Social Security and Medicare taxes for workers paid $2,700+
  • 2File Schedule H with your tax return
  • 3May need to provide Form W-2 to worker

Minnesota residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 7.85%.

Common Mistakes to Avoid

  • !Misclassifying employees as independent contractors
  • !Not withholding or paying employer FICA
  • !Missing the Schedule H filing requirement
  • !Forgetting to claim the deduction on your Minnesota state return (missing 7.85% additional savings)

Required Tax Forms

Schedule HForm W-2

File these forms with your federal tax return to claim the household employer tax obligations. Minnesota may require additional state-specific forms.

Calculate Your Full Tax Savings in Saint Paul

Use our free tax calculators to optimize your entire tax return for Minnesota.

Frequently Asked Questions

How much can I save with the Household Employer Tax Obligations in Saint Paul, MN?

In Saint Paul, Minnesota, the household employer tax obligations can save you an estimated $1,493 per year. This includes $1,100 in federal tax savings and $393 in Minnesota state tax savings. The national average savings is $1,200/year.

What is the Minnesota state income tax rate for Saint Paul residents?

Minnesota has a 7.85% state income tax rate. Saint Paul residents have no additional local income tax.

Who qualifies for the Household Employer Tax Obligations in Saint Paul?

Household employers who pay a nanny, housekeeper, or other household worker $2,700+. The eligibility requirements are the same whether you live in Saint Paul or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Minnesota's 7.85% state tax rate.

What tax forms do I need to claim the Household Employer Tax Obligations in Minnesota?

To claim the household employer tax obligations, you need to file Schedule H and Form W-2 with your federal return. Minnesota residents should also check if the state allows this deduction on their state return, which could provide an additional 7.85% savings. Filing status affects your deduction limits and tax bracket.

Is the Household Employer Tax Obligations better in Saint Paul than in states without income tax?

Yes, Saint Paul residents benefit more because Minnesota's 7.85% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 29.9% means more savings per dollar deducted.