Minnesota contractor vs W-2

Contractor vs W-2 take-home in Minnesota using Tax Foundation January 1, 2026 graduated rates. Top modeled rate 9.85% above $203,150 taxable. W-2 uses the paycheck model (federal + FICA + state). Contractor: SE tax 15.3% on 92.35% of net profit, extra 0.9% Medicare over IRS thresholds, half of SE tax deductible, optional 20% QBI. Local income taxes are not included. Estimate, not tax advice.