Minnesota Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Minnesota state income tax as a freelancer or 1099 contractor. Minnesota has a progressive income tax with rates from 5.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,649
Total Tax Owed
$21,041

Summary

Total Income
$75,000
Total Taxes
-$21,041
After-Tax Income
$53,959
Effective Tax Rate(on total income)
28.1%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,260
Q2 (Apr-May)Due June 15
$5,260
Q3 (Jun-Aug)Due September 15
$5,260
Q4 (Sep-Dec)Due January 15 (next year)
$5,260
Each Quarterly Payment
$5,260

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,260. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Minnesota Tax Overview for Freelancers

Minnesota has a progressive income tax with rates from 5.35% to 9.85%, making it one of the highest-tax states in the nation. Self-employed individuals in Minnesota pay federal self-employment tax (15.3%) plus federal income tax, and Minnesota state income tax on their net self-employment earnings.

Progressive rates up to 9.85%Partial Social Security taxationStrong healthcare and corporate presenceHigh quality of life

Self-Employment Taxes in Minnesota

If you work as a freelancer or independent contractor in Minnesota, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Minnesota state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Minnesota Income Tax for Freelancers

Minnesota has a progressive income tax with rates from 5.35% to 9.85%, making it one of the highest-tax states in the nation.

Cost of Living for Freelancers in Minnesota

Minnesota's cost of living is about 1% above the national average, with the Twin Cities metro being moderately above average. As a freelancer in Minnesota, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Minnesota Freelancers

  • Minnesota's top rate of 9.85% makes it important to maximize pre-tax deductions
  • Minnesota taxes Social Security benefits partially — plan for this in retirement
  • Minneapolis-St. Paul's strong healthcare, finance, and retail sectors offer competitive compensation
  • Minnesota's high taxes fund strong public services and quality of life

Key Minnesota Tax Features

  • Progressive rates up to 9.85%
  • Partial Social Security taxation
  • Strong healthcare and corporate presence
  • High quality of life

Model Your Minnesota Freelance Finances Over Time

This calculator shows your Minnesota tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Minnesota with Other States

Wisconsin7.65% top rateIowa5.7% top rateSouth DakotaNo income taxTexasNo income taxFloridaNo income taxTennesseeNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Minnesota?
Self-employed workers in Minnesota pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Minnesota state income tax. Minnesota has a progressive income tax with rates from 5.35% to 9.85%, making it one of the highest-tax states in the nation.
How much will I owe in quarterly taxes as a freelancer in Minnesota?
Your quarterly estimated tax payment in Minnesota depends on your total tax liability — including SE tax, federal income tax, and Minnesota state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Minnesota freelancers?
Freelancers in Minnesota can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Minnesota state taxable income, providing additional state tax savings.
Does Minnesota have any special taxes for self-employed workers?
Minnesota does not have a separate self-employment tax. However, your net self-employment income is subject to Minnesota's regular income tax (9.85% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Minnesota?
The decision to form an LLC or S-Corp in Minnesota depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Minnesota tax professional for advice specific to your situation.

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