2025 Tax Year

Minnesota Side Hustle Tax Calculator

Calculate your Minnesota state tax (6.80%), federal tax, and self-employment tax on 1099 income.

MN6.80%

5.7 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Minnesota side hustlers face one of the higher state tax burdens in the Midwest, with progressive rates ranging from 5.35% to 9.85%. For most freelancers earning between $31,000 and $100,000 in total income, the effective rate is around 6.80%. The Land of 10,000 Lakes has a robust gig economy centered around the Twin Cities metro area.

Minnesota Tax Guide

How Side Hustle Taxes Work in Minnesota

Minnesota uses a progressive income tax system with four brackets:

**Minnesota state tax rates (2025):** - 5.35% on income up to $31,690 (single) - 6.80% on $31,691 - $104,090 - 7.85% on $104,091 - $193,240 - 9.85% on income over $193,240

**No local income taxes:** - Minneapolis, St. Paul, and all Minnesota cities do not levy local income taxes - You only pay the state progressive rate

Minnesota's rates are among the highest in the Midwest, but the state offers quality public services and infrastructure in return.

Example

What Minnesota Side Hustlers Owe

Let's say you're a single filer in Minneapolis with a $55,000 W-2 job and $18,000 in side hustle income from freelance design, with $3,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $15,000 - Federal SE tax (15.3% of 92.35%): ~$2,122 - Federal income tax on side income: ~$3,300 (22% bracket) - Minnesota state tax (6.80%): ~$1,020 - **Total additional tax: ~$6,442**

Your effective rate on the side hustle is approximately 43%.

Important Dates

Minnesota Tax Deadlines 2025

Minnesota estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Minnesota Form M1 for annual returns and Form M14 for quarterly estimated payments.

Save Money

Common Deductions for Minnesota Freelancers

Common deductions for Minnesota freelancers include: - Home office expenses - Business mileage (67 cents/mile for 2025) - Equipment and software purchases - Professional services (accounting, legal) - Minnesota generally follows federal deduction rules for business expenses

Common Questions

Minnesota Side Hustle Tax FAQ

What is Minnesota's tax rate on side hustle income?

Minnesota has progressive rates from 5.35% to 9.85%. Most side hustlers pay 6.80% on income between $31,691 and $104,090.

Does Minneapolis have a city income tax?

No, Minneapolis and all Minnesota cities do not have local income taxes. You only pay state-level income tax on your freelance earnings.

How does Minnesota compare to neighboring states?

Minnesota has higher tax rates than Wisconsin (5.30%), Iowa (5.70%), and much higher than South Dakota (0%). However, the state provides extensive public services.

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