Self-Employment Tax for Minnesota (2026)
Minnesota (MN) Key Facts
Federal S E Tax Rate
15.3%
State Income Tax Rate
9.85%
Combined S E + State Rate
25.1%
S E Tax Components
12.4% Social Security + 2.9% Medicare
How This Calculator Works in Minnesota
This calculator estimates your total self-employment tax in Minnesota, including the federal 15.3% SE tax and Minnesota's state income tax. Enter your net SE income to see your liability.
Minnesota Overview
Self-employed workers in Minnesota pay the federal 15.3% SE tax plus state income tax at up to 9.85%, for a combined burden of approximately 25.1%. Quarterly estimated payments are typically required for both federal and state obligations.
How Minnesota Compares
Minnesota's combined SE burden of 25.1% compares to Wisconsin at 23.0% and Iowa at 21.0%. State income tax creates meaningful differences between states.
| State | Top Rate | Notes |
|---|---|---|
| Wisconsin | 7.65% | Wisconsin has a state income tax on SE income rate of 7.65%. |
| Iowa | 5.7% | Iowa has a state income tax on SE income rate of 5.7%. |
| North Dakota | 1.95% | North Dakota has a state income tax on SE income rate of 1.95%. |
Minnesota's state income tax on SE income rate of 9.85% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Minnesota Residents
- 1Federal self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) regardless of state.
- 2Minnesota adds state income tax at up to 9.85% on self-employment income, for a combined rate of about 25.1%.
- 3Make quarterly estimated payments for both federal and Minnesota state taxes to avoid underpayment penalties.
- 4Deduct half of your SE tax on your federal return and track all business expenses to minimize net self-employment income.
- 5Consider whether an S-Corp election could reduce your SE tax burden if your net income exceeds $50,000-$60,000.