Employee Cost: District of Columbia vs Minnesota (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

District of Columbia saves $207/employee/year

$65,751 in District of Columbia vs $65,958 in Minnesota

District of Columbia

$65,751

1.1x salary

Minnesota

$65,958

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component DC MN Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $153 $420 -$267
Workers' Compensation $810 $708 +$102
State-Mandated Insurance $156 $198 -$42
Total Employer Cost $65,751 $65,958 -$207

Tax Rate Comparison

Rate District of Columbia Minnesota
SUTA Rate Range 0.16% – 7.0% 0.1% – 9.0%
SUTA Typical Rate 1.7% 1.0%
SUTA Wage Base $9,000 $42,000
Workers' Comp Rate 1.35% 1.18%
State Income Tax Yes Yes
Paid Family Leave 0.26% 0.33%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing District of Columbia over Minnesota saves $207 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,070 annually.

The biggest difference comes from SUTA (state unemployment tax) — District of Columbia charges 1.7% vs Minnesota's 1.0%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary DC Total MN Total Difference
$30,000 $32,973 $33,090 -$117
$40,000 $43,899 $44,106 -$207
$50,000 $54,825 $55,042 -$217
$60,000 $65,751 $65,958 -$207
$75,000 $82,140 $82,332 -$192
$100,000 $109,455 $109,622 -$167
$125,000 $136,770 $136,912 -$142
$150,000 $164,085 $164,202 -$117

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of DC.

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