Minnesota Self-Employment Tax Calculator 2026
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Minnesota has a high top income tax rate of 9.85%. High-earning freelancers in Minnesota face some of the highest combined state + federal tax burdens in the US.
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Gross income minus business expenses
Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.
Minnesota self-employment tax questions
What is the self-employment tax rate in Minnesota?
The self-employment tax rate is 15.3% on net self-employment earnings up to $184,500 for 2026, then 2.9% above that. It is a federal tax, so the rate in Minnesota is the same as every other state. Minnesota separately taxes that income at up to 9.85%.
Do freelancers in Minnesota pay self-employment tax?
Yes. Every freelancer and independent contractor in the US, Minnesota included, owes self-employment tax once net self-employment earnings reach $400 for the year. You can deduct half of the SE tax from gross income on your federal return.
Does Minnesota have its own self-employment tax?
No. Minnesota does not levy a separate self-employment tax. It taxes self-employment income as ordinary income at up to 9.85%, which is a different tax from the federal 15.3% SE tax. Minnesota has a high top income tax rate of 9.85%. High-earning freelancers in Minnesota face some of the highest combined state + federal tax burdens in the US.
How much of self-employment tax is deductible in Minnesota?
Half of your self-employment tax is deductible from gross income on your federal return, which lowers federal income tax but not the SE tax itself. The deduction is federal; Minnesota treatment follows its own rules for calculating state taxable income.
Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.