What is Minnesota's income tax rate for self-employed workers in 2026?

Graduated brackets of 5.35%, 6.80%, 7.85% and 9.85%. Most gig workers with $35,000–$100,000 of net profit sit in the 6.80% to 7.85% range.

Do Minneapolis or St. Paul tax self-employment income?

No. No Minnesota city levies an income tax, so Form M1 is your only state return. Both cities do license rideshare and delivery activity, which is separate from tax.

When are Minnesota quarterly estimated taxes due?

Form M14 payments are due April 15, June 15, September 15, 2026 and January 15, 2027. Minnesota requires estimates once you expect to owe $500 or more — half the federal threshold.

How much should a Minnesota gig worker set aside for taxes?

Plan on 28% to 34% of net profit to cover federal income tax, the 15.3% self-employment tax and Minnesota's state layer.

Does Minnesota allow the QBI deduction?

No. Minnesota does not conform to the federal 20% qualified business income deduction, so add it back when estimating your state tax.

Does the mileage deduction reduce Minnesota tax?

Yes. Minnesota builds on federal income, so the 2026 rate of $0.70 per business mile lowers your state taxable income along with your federal.

Minnesota Self-Employed Tax Calculator

Federal income tax + 15.3% self-employment tax + Minnesota's 5.35%–9.85% state tax on 2026 1099 income.

Minnesota's first bracket already starts at 5.35%, so unlike most states there is no cheap entry point for a small side hustle — your very first gig dollar is taxed at a real rate. No Minnesota city taxes income, but the state asks for estimated payments once you expect to owe just $500, and it does not follow the federal QBI deduction, so your Minnesota taxable income usually runs higher than your federal figure.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$13,464

Refund / owed

-$13,464

Effective rate

22.4%

Detailed breakdown

Mileage deduction$5,600

Total business expenses$8,100

Net self-employment income$51,900

Self-employment tax (15.3%)$7,333

½ SE deduction (above-the-line)$3,667

Adjusted gross income$48,233

Taxable income$32,133

Federal income tax$3,608

State tax (est.)$2,522

Quarterly estimated payment$3,159

Marginal rate19.9%

Minnesota city tax rates for self-employed workers (2026)

Minnesota has one of the higher state income taxes in the Midwest — graduated brackets from 5.35% up to 9.85% — and no city income tax. For gig workers the sting is that Minnesota's lowest bracket already starts at 5.35%, so even a small side hustle gets taxed meaningfully.

Local and state tax rates for self-employed residents of major Minnesota cities in 2026
City	Local rate	State rate	What gig workers should know
Minneapolis	No city income tax	5.35%–9.85%	Rideshare and delivery drivers need city licensing under Minneapolis TNC rules; no local income tax.
St. Paul	No city income tax	5.35%–9.85%	State return only; city business licensing applies to some trades.
Rochester	No city income tax	5.35%–9.85%	No local income levy; sales tax applies on goods.
Duluth	No city income tax	5.35%–9.85%	City sales and lodging taxes affect Airbnb hosts, not 1099 profit.
Bloomington	No city income tax	5.35%–9.85%	State-only income filing.

Minnesota local and state filing deadlines

Q1 Form M14April 15, 2026
Minnesota estimates required if you expect to owe $500 or more of state tax.
Q2 Form M14June 15, 2026
Second installment.
Q3 Form M14September 15, 2026
Third installment.
Q4 Form M14January 15, 2027
Final installment for the 2026 year.
Minnesota Form M1 returnApril 15, 2027
Resident return; Minnesota does not follow every federal deduction, so recheck your additions.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

Minnesota's $500 estimated-payment threshold is half the federal $1,000, so part-time gig workers often owe state estimates before federal ones.
Minnesota does not allow the federal QBI deduction, so your state taxable income runs higher than your federal taxable income.
No Minnesota city taxes income, but Minneapolis and St. Paul license rideshare and delivery activity — check licensing before you drive.

See every Minnesota tax form you need to file — annual, quarterly, and local →

Frequently asked questions

What is Minnesota's income tax rate for self-employed workers in 2026?: Graduated brackets of 5.35%, 6.80%, 7.85% and 9.85%. Most gig workers with $35,000–$100,000 of net profit sit in the 6.80% to 7.85% range.
Do Minneapolis or St. Paul tax self-employment income?: No. No Minnesota city levies an income tax, so Form M1 is your only state return. Both cities do license rideshare and delivery activity, which is separate from tax.
When are Minnesota quarterly estimated taxes due?: Form M14 payments are due April 15, June 15, September 15, 2026 and January 15, 2027. Minnesota requires estimates once you expect to owe $500 or more — half the federal threshold.
How much should a Minnesota gig worker set aside for taxes?: Plan on 28% to 34% of net profit to cover federal income tax, the 15.3% self-employment tax and Minnesota's state layer.
Does Minnesota allow the QBI deduction?: No. Minnesota does not conform to the federal 20% qualified business income deduction, so add it back when estimating your state tax.
Does the mileage deduction reduce Minnesota tax?: Yes. Minnesota builds on federal income, so the 2026 rate of $0.70 per business mile lowers your state taxable income along with your federal.