Minnesota vs New York: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,978 in Minnesota and $65,942 in New York. New York saves $36/year per hire.
New York is $36 per year cheaper than Minnesota for a $60,000 employee in 2026, with total employer costs of $65,942 vs $65,978 including all mandatory payroll taxes.
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At a $60,000 salary
New York saves $36/employee/year
$65,978 in Minnesota vs $65,942 in New York
Minnesota
$65,978
1.1x salary
New York
$65,942
1.1x salary
Shareable Insights
$138 gap in mandatory program costs
Both states require disability/PFL, but Minnesota charges more.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | MN | NY | 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) | $440 | $440 | — |
| Workers' Compensation | $708 | $810 | -$102 |
| State-Mandated Insurance | $198 | $60 | +$138 |
| Total Employer Cost | $65,978 | $65,942 | +$36 |
Tax Rate Comparison
| Rate | Minnesota | New York |
|---|---|---|
| SUTA Rate Range | 0.1% – 9.0% | 0.13% – 8.9% |
| SUTA Typical Rate | 1.0% | 2.5% |
| SUTA Wage Base | $44,000 | $17,600 |
| Workers' Comp Rate | 1.18% | 1.35% |
| State Income Tax | Yes | Yes |
| Disability Insurance | Not required | 0.1% |
| Paid Family Leave | 0.33% | Not required |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing New York over Minnesota saves $36 per employee per year in employer-side payroll costs alone. For a team of 10, that's $360 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from workers' compensation rates — Minnesota charges 1.18% of payroll vs New York's 1.35%. Workers' comp rates vary by industry within each state, so high-risk industries (construction, manufacturing) will see larger absolute dollar differences. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.
A notable difference between these states is mandatory benefit programs. Both states require employer contributions to additional benefit programs, though the amounts differ: $198 in Minnesota vs $60 in New York.
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.
Choosing Between Minnesota and New York?
Cost alone favors New York: At a $60K salary, you save $36 per employee — a real number that compounds across a growing team. At 20 employees, that's $720/year before factoring in any raises.
When Minnesota might still make sense: If your business depends on talent concentrated in Minnesota — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $36/employee savings a strong argument for New York-based registration.
What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Minnesota has state income tax; New York has state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
Minnesota
Minnesota requires employers to contribute to both SUTA (on a $44,000 wage base) and a 0.33% paid family leave program, creating one of the higher employer tax burdens in the Midwest.
healthcare & medical devices (Medtronic), retail (Target, Best Buy), food processing (General Mills)
Minnesota's generous paid family leave program (24 weeks total) is a competitive recruiting tool that many Fortune 500 headquarters use to attract talent from lower-benefit states.
New York
New York has a high employer tax profile with a $17,600 SUTA wage base, disability insurance contributions, and among the highest workers' compensation costs of any major state.
financial services, healthcare, technology & media
New York City employers face additional local taxes and mandatory benefits not captured in state-level SUTA figures; real hiring costs in NYC are materially higher than upstate New York.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- State income tax applies — factor into total compensation packages
- Low SUTA rate (1.0% on $44,000 wage base) — below-average unemployment insurance cost
- Workers' comp rate 1.18% — near national average, varies by industry classification
- State paid family leave program (0.33% employer share) — additional mandatory payroll cost
- State income tax applies — factor into total compensation packages
- Above-average SUTA rate (2.5% on $17,600 wage base) — one of the higher state unemployment rates nationally
- Workers' comp rate 1.35% — near national average, varies by industry classification
- Mandatory disability insurance (0.1%) — required employer contribution on top of federal obligations
Hiring Strategy Takeaway
The $36 per-employee cost gap at $60K salary is primarily driven by state-mandated insurance programs. For a growing business, this difference compounds quickly — a 10-person team in New York costs $360 less annually than the same team in Minnesota, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | MN Total | NY Total | Difference |
|---|---|---|---|
| $30,000 | $33,090 | $33,212 | -$122 |
| $40,000 | $44,106 | $44,122 | -$16 |
| $50,000 | $55,062 | $55,032 | +$30 |
| $60,000 | $65,978 | $65,942 | +$36 |
| $75,000 | $82,352 | $82,307 | +$45 |
| $100,000 | $109,642 | $109,582 | +$60 |
| $125,000 | $136,932 | $136,857 | +$75 |
| $150,000 | $164,222 | $164,132 | +$90 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of MN.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
Minnesota
New York
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