2026 tax year · Minnesota
Delivery and rideshare driver taxes in Minnesota
DoorDash, Uber, Lyft and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Minnesota that gap is worth $4,066 in tax.
Take a driver who grossed $42,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the delivery and rideshare driver page $14,505 comes off and $27,495 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 | $3,885 |
| Federal income tax | $756 |
| Minnesota income tax | $1,367 |
| Total tax | $6,008 |
| Effective rate on gross | 14.3% |
Earning more in Minnesota
A single filer taking the standard deduction, standard mileage method, 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, a few evenings | $15,000 | $4,826 | $10,174 | $506 | $1,943 | 13.0% |
| Steady side income | $42,000 | $13,365 | $28,635 | $1,424 | $6,311 | 15.0% |
| Full-time dashing | $68,000 | $22,275 | $45,725 | $2,422 | $11,168 | 16.4% |
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.
Driving across a Minnesota line
Driving income is sourced to where the wheels were, not where you live. Take a fare or a delivery that ends in the next state and that state can claim the income earned inside it. Most drivers near a border never file the second return, the amounts are small and the platforms do not split earnings by state. But the obligation exists, and it is the state you drove INTO that would come asking.
On $27,495 of profit, what the states around Minnesota would charge:
| State | Its tax | vs Minnesota |
|---|---|---|
| North Dakota | $0 | −$1,471 |
| South Dakota | No income tax | −$1,471 |
| Iowa | $1,045 | −$426 |
| Wisconsin | $1,081 | −$390 |
- North Dakota would take $1,471 less, $0 against Minnesota's $1,471.
- South Dakota has no income tax at all, so the same work done there costs $1,471 less in state tax than it does in Minnesota.
- Iowa would take $426 less, $1,045 against Minnesota's $1,471.
- Wisconsin would take $390 less, $1,081 against Minnesota's $1,471.
Delivery and rideshare driver tax questions in Minnesota
How much should a Minnesota driver set aside?
About 14.3% of gross on the $42,000 example, $6,008 across self-employment tax, federal income tax and $1,367 to Minnesota. Set aside from each payout rather than finding it in April.
Does the $42,000 on my 1099-NEC match what Minnesota taxes?
No. Minnesota taxes profit, not gross. After $14,505 of deductions the taxable figure is $27,495, so the Minnesota bill is $1,367 rather than what gross alone would suggest.