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Last Updated: 3/6/2018

Estimated Tax

You can pay Minnesota estimated tax through any of the following ways:
  • Pay through our e-Services Payment System - It’s secure, easy, and convenient. You can make a single payment or schedule all four payments at once.
    • On the Welcome page, select “No, I am not using a Letter ID.”
    • On the next page, select “Individual” for Type of Taxpayer and “Individual Income Tax” for the Type of Tax. Complete the other required fields and select the Next button.
  • Pay by credit or debit card - Value Payment Systems LLC processes one-time credit and debit card payments. They charge a convenience fee for this service.
  • Pay by check or money order - Create and print a payment voucher to include with your check or money order. Make your check payable to Minnesota Revenue and include the last four digits of your Social Security number in the memo line.

Keep a record of your payments. You will need this information when filing your return. Use our form to keep track of your payments.

What is Estimated Tax? 

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

  • 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.

Do I Need to Make Estimated Tax Payments?

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 the following:

  • 90 percent of your tax liability for the current year
  • 100 percent of your tax liability for the previous year (110 percent if your adjusted gross income was more than $150,000)

“Tax liability” is the amount you owe after subtracting total nonrefundable credits from your total tax.

When are Estimated Tax Payments Due?

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

For the period​: Pay by:​
Jan. 1 through March 31​ April 15​
April 1 through May 31 June 15​
June 1 through Aug. 31 Sept. 15​
Sept. 1 through Dec. 31​ Jan. 15 (of the following year)​*

* You do not have to make this estimated payment if you file your Minnesota Individual Income Tax return and pay the entire amount by Jan. 31.

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.

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.
 

How do I calculate my estimated tax payments?

  1. Use federal Form 1040-ES, Estimated Tax for Individuals, to calculate your federal adjusted gross income, deductions, exemptions, and taxable income for the year.
  2. Use Form M1, Individual Income Tax, to estimate your Minnesota tax liability and credits for the year.
  3. Enter the federal taxable 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 choose to pay the entire amount at one time, your payment is due April 15 of the current year.
You may need to adjust your estimated payment amounts if tax laws change or if your income, deductions, exemptions, or credits change during the year.
 
Note: We may assess a penalty if you underpay your estimated tax or do not pay by the due dates. For more information, see Schedule M15, Underpayment of Estimated Income Tax.