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Minnesota Freelancer Deduction Calculator 2026

See how business deductions reduce your Minnesota freelancer taxes in 2026. Deductions lower your net SE income, which reduces both your SE tax and Minnesota state income tax.

Before business expenses and taxes

Business Deductions

$0.67/mi (2026 IRS rate)

Above-the-Line Deductions

Self-employed: 100% deductible

Deductions for Minnesota Freelancers

Minnesota has a four-bracket progressive income tax system with a top rate of 9.85% — one of the highest top rates in the country. Middle earners are also notably impacted: the 6.8% rate kicks in at just $33,310 for single filers, meaning a worker earning $60,000 pays 6.8% on most of their income. Minnesota's standard deduction of $15,300 is relatively generous. Minnesota has no local city income taxes on wages. Compared to neighboring Wisconsin (up to 7.65%), Iowa (3.8% flat), and North Dakota (up to 2.5%), Minnesota's burden is significantly higher — especially for earners in the $100K-$200K range who face the 7.85% bracket. Minneapolis and St. Paul workers pay Minnesota state tax only, with no additional city income tax.

Frequently Asked Questions

What is the Minnesota income tax rate for 2026? ▾
Minnesota has four brackets: 5.35% up to $33,310, 6.8% from $33,310 to $109,430, 7.85% from $109,430 to $203,150, and 9.85% above $203,150 for single filers.
Do Minneapolis or St. Paul charge city income tax? ▾
No. Neither Minneapolis nor St. Paul charges a local city income tax on wages.
Is Minnesota one of the highest-taxed states? ▾
Yes, particularly for higher earners. Minnesota's top rate of 9.85% is among the top 5 highest state income tax rates in the country.
How does Minnesota compare to neighboring North Dakota? ▾
Dramatically. North Dakota's income tax is 0% up to $48,475 and maxes at 2.5%. A Minnesota resident earning $150,000 pays nearly $9,000 more in state income tax than a North Dakota resident at the same income.

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