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How Self-Employment Tax Works in Minnesota (2026)
Self-employment tax is 15.3% — 12.4% Social Security plus 2.9% Medicare — applied to 92.35% of your net self-employment income, on top of federal and Minnesota income tax. Half of the SE tax (7.65% equivalent) is an above-the-line deduction against your federal taxable income.
| Piece | Rate / rule |
|---|---|
| Net earnings subject to SE tax | 92.35% of net profit |
| Social Security portion | 12.4% (up to $184,500 of net earnings) |
| Medicare portion | 2.9% · +0.9% above $200,000 |
| Deductible half of SE tax | 50%, above-the-line on your federal return |
Estimated payments are due quarterly (roughly mid-April, mid-June, mid-September, and mid-January). The 20% Qualified Business Income deduction (§199A) is not modeled here — it depends on your income level and business type. If you also have W-2 wages, the Social Security cap is measured against your combined earnings, so this estimate runs high.
Minnesota Self-Employment Tax by Income (2026)
Single filer, 1099 income is the only earnings for the year. The quarterly figure is an even 4-way split of the annual total.
| Net 1099 income | SE tax | Federal tax | Minnesota tax | Quarterly payment |
|---|---|---|---|---|
| $20,000 | $2,826 | $249 | $215 | $822 |
| $40,000 | $5,652 | $2,281 | $1,209 | $2,285 |
| $60,000 | $8,478 | $4,511 | $2,341 | $3,833 |
| $80,000 | $11,304 | $7,527 | $3,605 | $5,609 |
| $100,000 | $14,130 | $11,616 | $4,869 | $7,654 |
Minnesota Self-Employment Tax FAQ
How much is self-employment tax in Minnesota?
15.3% federal SE tax (12.4% Social Security on 92.35% of net profit up to $184,500, plus 2.9% Medicare), then Minnesota income tax on your net profit at 5.35%-9.85% depending on income, and federal income tax. Half the SE tax is deductible federally.
Do I need to make quarterly estimated payments in MN?
Yes if you expect to owe federal tax of $1,000 or more, and Minnesota expects quarterly estimated payments once your unpaid Minnesota tax passes its own threshold (check the Minnesota Department of Revenue). Minnesota’s due dates track the federal schedule - mid-April, mid-June, mid-September, mid-January.
Does Minnesota tax 1099 income differently than W-2 wages?
No - the income tax rate is the same. The difference is that as a 1099 worker you pay the full 15.3% SE tax yourself instead of splitting FICA with an employer, and you file Minnesota estimated payments quarterly.
Methodology & Source
Minnesota state tax figures sourced from Minnesota Department of Revenue (https://www.revenue.state.mn.us/), citing Minn. Stat. § 290.06. Federal brackets, standard deductions (single/MFJ/HoH), and FICA constants sourced from the IRS (Revenue Procedure 2025-32; married-filing-jointly Additional Medicare threshold of $250,000 is a separate, unindexed statutory figure). Minnesota's married-filing-jointly and head-of-household figures are not yet independently verified and currently fall back to single-filer brackets — see the caveat in the formula section above.
Self-employment tax uses the statutory 15.3% rate (12.4% Social Security + 2.9% Medicare) on 92.35% of net self-employment income, with half of the SE tax deducted from federal taxable income above-the-line — per IRS Schedule SE (Form 1040) instructions, IRC §1401 and §164(f), 2026 edition. The 20% Qualified Business Income deduction (IRC §199A) is not modeled — it phases out by income and business type and is too state/entity-dependent to compute generically. This assumes the self-employment income is your only earnings for the year; if you also have W-2 wages, the Social Security wage-base cap and Additional Medicare threshold are actually based on your combined earnings, so this will overstate SE tax if you have significant wage income too.
This is an estimate based on standard single-filer federal, FICA, and MN state calculations. Actual withholding may differ based on your W-4 elections, pre-tax deductions, and other factors.
Guideline version: 2026-MN-v1 · Effective: 2026-01-01 · Last verified: 2026-07-26