2026 tax year · Minnesota
Rental host taxes in Minnesota
Airbnb, Turo and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in Minnesota that gap is worth $2,812 in tax.
Take a driver who grossed $39,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the rental host page $10,100 comes off and $28,900 is left as taxable profit. That profit is what Minnesota and the IRS charge against.
What that leaves you owing in Minnesota
Minnesota uses graduated 2026 income tax brackets topping out at 9.85%, across 4 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $4,083 |
| Federal income tax | $861 |
| Minnesota income tax | $1,437 |
| Total tax | $6,381 |
| Effective rate on gross | 16.4% |
Earning more in Minnesota
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Minnesota tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $13,000 | $0 | $13,000 | $646 | $2,483 | 19.1% |
| Steady side income | $39,000 | $0 | $39,000 | $1,997 | $9,193 | 23.6% |
| Full-time | $63,000 | $0 | $63,000 | $3,514 | $16,242 | 25.8% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Minnesota specifics that change the number
Minnesota is one of the twelve states that still taxes Social Security benefits, which matters if you are drawing benefits alongside self-employment income.
Local taxes on a Minnesota let
The income tax below is only part of it. Short-term lets attract occupancy, lodging or transient taxes levied by the city or county rather than Minnesota, often at rates that dwarf the state income tax. Some platforms collect and remit them; some collect only part; in some places the host is on the hook entirely. That is a local question this calculator cannot answer, and it is the one hosts most often get wrong.
On $28,900 of profit, what the states around Minnesota would charge:
| State | Its tax | vs Minnesota |
|---|---|---|
| North Dakota | $0 | −$1,546 |
| South Dakota | No income tax | −$1,546 |
| Iowa | $1,098 | −$448 |
| Wisconsin | $1,145 | −$401 |
- North Dakota would take $1,546 less, $0 against Minnesota's $1,546.
- South Dakota has no income tax at all, so the same work done there costs $1,546 less in state tax than it does in Minnesota.
- Iowa would take $448 less, $1,098 against Minnesota's $1,546.
- Wisconsin would take $401 less, $1,145 against Minnesota's $1,546.
Rental host tax questions in Minnesota
How much should a Minnesota host set aside?
About 16.4% of gross on the $39,000 example, $6,381 across self-employment tax, federal income tax and $1,437 to Minnesota. Set aside from each payout rather than finding it in April.
Does the $39,000 on my 1099-NEC match what Minnesota taxes?
No. Minnesota taxes profit, not gross. After $10,100 of deductions the taxable figure is $28,900, so the Minnesota bill is $1,437 rather than what gross alone would suggest.