Freelancer Tax Guide — Minneapolis 2026
Freelancing in Minneapolis means a combined state and local income tax of 9.85%, one of the most heavily taxed freelance markets we track (4th of 50). Minneapolis adds no local income tax, so the 9.85% state rate is the whole of your non-federal income tax. Living costs are moderate relative to the rest of the list, and the freelancers we see here average $78,000 a year — $7,683 of that goes to state and local income tax.
📊 Minneapolis Freelancer Tax Summary (2026)
State Income Tax
9.8%
SE Tax Rate
15.3%
Federal (all states)
At $78,000/yr
$57,370
Take-home pay
Recommended Savings
31–36%
Of each payment
💡 Key insight: Minnesota's 9.85% top rate is high, but Minneapolis's strong economy (Target, UnitedHealth, 3M HQs nearby) creates excellent freelance opportunities.
Calculate Your Minneapolis Freelancer Take-Home Pay
SE Tax
$11,021
Federal Tax
$5,165
State Tax
$4,443
Take-Home
$57,370
Total Tax
$20,630
Effective Rate
26.4%
Quarterly Payment
$5,157
Monthly Net
$4,781
Minneapolis Freelance Market Overview
Top Industries
- Finance
- Healthcare
- Tech
- Retail
- Design
- Marketing
Recommended Hourly Rates
Average Freelance Income
$78,000/year
Estimated average for freelancers in Minneapolis across all industries.
Minneapolis Tax Tips for Freelancers
Minnesota has one of the highest income tax rates (up to 9.85%) — significant for freelancers.
Minneapolis has no additional city income tax.
Strong corporate headquarters in Minneapolis create consistent freelance demand.
Save 28–33% for taxes as a Minneapolis freelancer.
Calculate Your Exact Minneapolis Freelancer Taxes
Use our free self-employment tax calculator — includes Minnesota rates.
How Minneapolis Compares
Combined state and local income tax on $78,000 of freelance income, against the cities closest to Minneapolis on rate.
| City | State | Local | Combined | Tax Due |
|---|---|---|---|---|
| Minneapolis (this guide) | 9.85% | — | 9.85% | -$7,683 |
| Portland, OR | 9.90% | — | 9.90% | -$7,722 |
| Los Angeles, CA | 9.30% | — | 9.30% | -$7,254 |
| San Francisco, CA | 9.30% | — | 9.30% | -$7,254 |
| San Diego, CA | 9.30% | — | 9.30% | -$7,254 |
| Sacramento, CA | 9.30% | — | 9.30% | -$7,254 |
* Same $78,000 income applied to each city's rates, so the columns are directly comparable. Federal self-employment tax is identical everywhere and excluded here.