Is Minnesota PFML Taxable? What You Need to Know
Last updated: January 2026
Yes, Minnesota PFML benefits are taxable income. You must pay both federal income tax and Minnesota state income tax on your PFML payments. When you apply, you can choose to have taxes withheld (10% federal, 5% state) or pay the taxes when you file your return. You'll receive a 1099-G form by January 31st showing your total benefits for the year.
Quick Summary
Tax Withholding Options
When you apply for PFML benefits, you can choose whether to have taxes automatically withheld from each payment:
Option A: Withhold Taxes
- •10% withheld for federal taxes
- •5% withheld for Minnesota state taxes
- •Smaller weekly payments, no surprise tax bill
Best for: People who want predictable finances and don't want to owe at tax time.
Option B: No Withholding
- •Receive full benefit amount each payment
- •Pay taxes when you file your return
- •May owe taxes (or get a smaller refund)
Best for: People who need maximum cash flow now and can budget for tax time.
How to Change Your Withholding
- 1.Log in to your account at pl.mn.gov
- 2.Go to "Account Settings" or "Payment Preferences"
- 3.Update your tax withholding election
- 4.Changes apply to future payments only
Example: How Taxes Affect Your Payment
Scenario: You receive $1,000/week in PFML benefits
| With Withholding | No Withholding | |
|---|---|---|
| Gross PFML Benefit | $1,000 | $1,000 |
| Federal Withholding (10%) | -$100 | $0 |
| State Withholding (5%) | -$50 | $0 |
| You Receive | $850/week | $1,000/week |
Note: With no withholding, you'd owe approximately $150/week in taxes when you file. Over 12 weeks of leave, that's about $1,800 due at tax time.
Your 1099-G Tax Form
If you received PFML benefits during the year, you'll receive a Form 1099-G showing your total payments:
When You'll Receive It
By January 31st of the following year (sinces PFML started in 2026, first forms arrive by January 31, 2027)
Who Sends It
Minnesota Department of Employment and Economic Development (DEED)
What It Shows
- • Total PFML benefits paid to you
- • Federal taxes withheld (if any)
- • State taxes withheld (if any)
How to Access It
Available online in your pl.mn.gov account, or mailed to your address on file
How to Report PFML on Your Tax Return
Federal Tax Return (Form 1040)
- 1.Find your 1099-G form from Minnesota DEED
- 2.Report the total amount on Line 1 (Wages, salaries, tips, etc.) or as unemployment compensation depending on IRS guidance
- 3.If taxes were withheld, enter on the appropriate withholding line
Minnesota State Return (Form M1)
- 1.PFML benefits flow through from your federal return
- 2.No separate entry needed if already on federal return
- 3.Enter state withholding on the appropriate line
Tip: If you use tax software like TurboTax or H&R Block, it will prompt you to enter your 1099-G information and handle the reporting automatically.
Important Tax Notes
Estimated Tax Payments
If you don't elect withholding and expect to owe $1,000+ in taxes, you may need to make quarterly estimated tax payments to avoid penalties.
PFML Premiums Are Pre-Tax
The 0.44% employee premium is already deducted pre-tax from your paycheck. You don't need to claim an additional deduction.
Consult a Tax Professional
Everyone's tax situation is different. If you have questions about how PFML affects your specific situation, consult a tax professional.
Need to Calculate Your Benefits?
Use our free PFML calculator to estimate your weekly benefit amount before and after taxes.
Frequently Asked Questions
Is Minnesota PFML taxable?
Yes, Minnesota PFML benefits are taxable income at both the federal and state level. You will receive a 1099-G form showing your total benefits received, which you must report on your tax return.
Will taxes be withheld from my PFML payments?
Tax withholding is optional. When you apply for PFML, you can choose to have 10% withheld for federal taxes and 5% withheld for Minnesota state taxes. If you don't elect withholding, you may owe taxes when you file your return.
What tax form will I receive for PFML benefits?
You will receive a 1099-G form from the Minnesota Department of Employment and Economic Development (DEED) by January 31st of the following year. This form shows your total PFML benefits received during the tax year.
Can I change my tax withholding election?
Yes, you can change your withholding election at any time by logging into your account at pl.mn.gov and updating your preferences. Changes apply to future payments only.
Do I pay FICA taxes (Social Security and Medicare) on PFML?
No, PFML benefits are not subject to FICA taxes (Social Security and Medicare). You only pay federal and state income taxes on PFML benefits.
Are PFML premiums tax-deductible?
The employee portion of PFML premiums (0.44% of wages) is deducted pre-tax from your paycheck, similar to other payroll taxes. You do not separately deduct these on your tax return.
How do I report PFML on my tax return?
Report your PFML benefits as income on Line 1 of your federal Form 1040 (or the appropriate line for unemployment compensation on some versions). For Minnesota taxes, include it on your M1 state return. The amount is shown on your 1099-G form.