Estimated Tax

Estimated tax is how you pay tax on income not subject to withholding. Examples of this income include:

• Self-employment
• Pensions
• Unemployment compensation
• Interest and dividends
• Rents
• Alimony
• Gains from the sale of assets
• Prizes and awards

You may need to pay estimated tax if you do not have enough Minnesota income tax withheld from your salary, pension, or other income.

You must pay estimated tax if you expect to owe $500 or more in Minnesota income tax after subtracting your withholding and refundable credits. To avoid a penalty, your estimated tax payments plus your withholding and refundable credits must equal either of these:

• 90% of your current year’s original tax liability (66.7% if you are a farmer or commercial fisherman) 
• 100% of your prior year’s total tax liability (110% if your federal adjusted gross income is more than $150,000) 

If you are a nonresident or part-year resident, you must have had at least $1 of Minnesota tax liability to use 100% of your prior year’s tax.

For most people, estimated tax payments are due four times a year:

If you prefer to make one estimated tax payment for the full year, it is due April 15.

If the due date falls on a Saturday, Sunday, or legal holiday, the Minnesota Department of Revenue must receive your payment by the next business day.

Note: You do not need to make the January 15 payment if you file your Minnesota income tax return and pay the entire amount by January 31.

Fiscal Year Taxpayers

Payments are due on the 15th day of the fourth, sixth, and ninth months of your fiscal year and the first month of your next fiscal year.

Farmers and Commercial Fishermen

If at least two-thirds of your gross income is from farming or fishing, you only need to make one estimated payment on January 15 of the following year. You do not have to make this estimated payment if you file your return and pay your tax by March 1.

1. Use federal Form 1040-ES, Estimated Tax for Individuals, to calculate your federal adjusted gross income.
2. Use Form M1, Individual Income Tax, to estimate your Minnesota tax liability and credits for the year.
3. Enter the federal adjusted gross income you calculated in Step 1 on Form M1, line 1.
4. Complete Form M1 using the Minnesota income tax rates for the current year and your filing status.
5. Divide the amount you owe by four to get each payment. 

If you did not keep records of your payments, you may contact us at 651-296-3781 or email us at individual.incometax@state.mn.us for a list of estimated tax payments made for any tax year. If you email us, include:

• First and Last Name
• Date of Birth
• Last 4 digits of Social Security Number
• Address

For tax practitioners, you must have an active power of attorney on file to make this request. Complete Form REV185i or Form REV185b for your client and submit this form with your request for estimated tax payment amounts. You may contact us at 651-296-3781 or email us at individual.incometax@state.mn.us.