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Last Updated: 6/26/2017

Annuities and Pensions

​Minnesota does not require withholding on annuity and pension payments.  However, income tax may be withheld if the recipient requests it and the payer agrees to do so. To withhold tax, you must have a Minnesota tax ID.  You can register for a Minnesota tax ID through our e-Services system.

If you agree to withhold Minnesota tax:

When completing your withholding tax return:

  • Do not include the recipient of the pension payments in the “number of employees” field.
  • Do not include the amount of the payment in the “wages” field.
  • Include the tax withheld amount in the “total amount withheld” field.