Minnesota PFML Rate Released — 0.88% for 2026

Minnesota’s Department of Employment and Economic Development (DEED) confirmed today that the new paid leave program will launch with a 0.88% payroll tax, which is 25% higher than what was originally proposed (0.7%) two years ago when the Legislature passed the law. DEED will do rate adjustments each year after receiving an annual actuarial analysis to investigate the solvency of the program. Employees will pay up to half of the payroll tax — 0.44% of their taxable wages in the first year — but an employer can choose to assume some of the employee cost.

Although House Republicans are currently forwarding a bill that would delay the paid leave program by a year, DEED also confirmed today that paid leave remains on track to launch in 2026. DEED told lawmakers delaying the program another year is unnecessary, but Republicans say businesses need more time to comply.  A March 11 special election may influence control of the lower chamber, which may table that bill.

More information on Minnesota’s premium rate and contributions are located at Premium rate and contributions / Minnesota Paid Leave.