Software Engineer Salary in Minnesota (2026)
The average Software Engineer in Minnesota earns around $145,000/year. After taxes, your estimated take-home is $101,824/year ($8,485/month).
Take-Home Pay Breakdown
| Category | Amount |
|---|---|
Annual Take-Home Pay | $101,824 |
Monthly Take-Home Pay | $8,485 |
Biweekly Take-Home Pay | $3,916 |
Hourly Take-Home Pay based on 2,080 hrs/year | $49/hr |
Federal Tax | $23,534 |
State Tax | $8,549 |
FICA Taxes | $11,093 |
Effective Tax Rate total taxes ÷ gross salary | 29.78% |
Equity compensation? Run it through the right calculator.
RSUs, ISOs, and stock sales are taxed differently. Pick the tool that matches your event.
RSU Calculator
Vest income + sell-to-cover shortfall + capital-gains projection if you hold.
Calculate RSU vestISO/AMT Calculator
Federal AMT exposure, exemption phaseout, and your AMT crossover point.
Calculate AMTStock-Comp Tax Guide
RSU vs NSO vs ISO vs capital gains — how each is taxed in plain English.
Read the guideSoftware Engineer Salary Ranges in Minnesota
Not all Software Engineers earn the same — not even close
Minnesota's software engineering market is anchored by Target HQ Minneapolis (~13K MN, the country's 7th-largest retailer with substantial in-house engineering for Target.com + Target+ membership + supply-chain platforms), UnitedHealth Group / Optum Minnetonka (~25K MN, the country's largest healthcare insurer and the largest single employer of healthcare-software engineers in the US), Best Buy HQ Richfield (~5K HQ engineers, omnichannel commerce), 3M Maplewood (industrial IoT + cleanroom controls), and US Bancorp HQ Minneapolis (Fortune 200 banking tech).
Staff / Principal Engineer (Fortune 500)
$245,000–$425,000+ TC
UnitedHealth Optum Staff · Target Staff · Best Buy Principal · senior IC track at Fortune 100 scale
Senior Engineer (Healthcare Tech)
$155,000–$245,000
UnitedHealth Optum · HealthPartners · Medtronic devices SW · HIPAA + clinical-systems specialty
Senior Engineer (Retail / E-commerce)
$145,000–$225,000
Target.com + Target+ marketplace · Best Buy omnichannel · supply-chain + fulfillment platforms
Senior Engineer (Banking / Financial)
$150,000–$235,000
US Bancorp · Ameriprise · Securian · Wells Fargo Minneapolis · payment + advisor platforms
Senior Engineer (Industrial / IoT)
$140,000–$210,000
3M industrial systems · Cargill commodity-trading platforms · Polaris connected vehicles
Engineering Manager
$215,000–$365,000+ TC
EM at MN Fortune 500 · UHG/Target/Best Buy team leadership · partial equity-eligible
Mid-Level Engineer (3-6 yrs)
$112,000–$165,000
Functional IC at MN Fortune 500 · transitioning to senior band
Junior Engineer (0-3 yrs)
$82,000–$118,000
U of MN Carlson + CSE pipeline · St. Olaf + Macalester + Carleton + St. Thomas CS feeders
Senior Engineer (Defense / Cleared)
$145,000–$215,000
Honeywell Aerospace Plymouth · L3Harris Eagan · TS/SCI clearance premium
Senior Engineer (Remote, MN-based)
$165,000–$285,000+ TC
FAANG remote · Anthropic + OpenAI MN remote · MSP-airport-arbitrage common at Staff+
Worth knowing: Target HQ Minneapolis operates one of the country's largest in-house retail technology organizations — Target.com handles ~$30B+ annual digital revenue, Target+ marketplace operates as the third-largest US online marketplace, and Target's supply-chain platforms coordinate ~2,000 stores plus ~50 owned-brand DCs. Senior Target engineers clear $145-225K TC. UnitedHealth Optum Minnetonka (~25K MN employees, parent UHG ~400K globally as the Fortune 5 healthcare insurer) operates the country's largest healthcare-software engineering organization including OptumRx + OptumHealth + OptumInsight — substantial HIPAA + clinical decision support + claims-processing technology at Fortune 5 scale. MN's 9.85% top bracket above ~$198,630 single / ~$304,970 catches Staff+ engineers at $250K+ TC squarely — for a $300K-TC engineer the MN state tax adds ~$22-25K/year vs SD/TX/FL residency. MN's lack of mandatory county piggyback (distinctive vs MD/PA/IN/OH) means no additional layered tax. The $3M estate exemption (HF 1672 of 2023, among lower US thresholds) catches FAANG-track equity wealth accumulation by mid-career — meaningful for senior engineers with concentrated employer equity.
Calculate Your Exact Take-Home Pay
Add 401(k) contributions, HSA, dependents, and more to see your personalized take-home.
Open Full CalculatorFrequently Asked Questions
Find answers to common questions about your taxes and our calculator.
Compare Two States
See how income tax, take-home pay, and total tax burden differ between any two US states side by side.
State 1
State 2
Software Engineer Salary in Other States
More on Minnesota
Salaries by profession, top-paying roles by industry, and an economic breakdown for Minnesota in 2026.
Tax brackets, standard deductions, and take-home estimates for Minnesota in 2026.
Adjust filing status, 401(k) for your exact 2026 take-home in Minnesota.