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Last Updated: 10/31/2018

Nonresident Entertainer Tax

Regular Minnesota income tax does not apply to entertainers who are residents of other states and perform in Minnesota. Instead, their earnings are subject to Minnesota’s Nonresident Entertainer Tax. This tax is 2 percent of the gross compensation received by a nonresident entertainer or entertainment entity.

Who is considered an entertainer?

Entertainers are individuals who perform acts in Minnesota that amuse, entertain, or inform. Entertainers include – but are not limited to – musicians, singers, dancers, comedians, actors, athletes, and public speakers.

This definition also extends to an “entertainment entity,” which includes any of the following:

  • An independent contractor paid for providing entertainment.
  • A partnership paid for entertainment provided by entertainers who are partners.
  • A corporation (including subchapter S) paid for entertainment provided by entertainers who are shareholders.

What if I am a nonresident entertainer?

You must provide the promoter a completed federal Form W-9. If you are a Michigan or North Dakota resident, however, provide the promoter a completed Form MWR, Reciprocity Exemption/Affidavit of Residency instead of Form W-9.

You must report your Minnesota earnings for the previous year on Form ETR, Nonresident Entertainer Tax Return, by April 15. Do not file Form ETR if you provided the promoter Form MWR.

What if I am a promoter who pays the nonresident entertainer?

You must withhold 2 percent tax from gross compensation paid for performances in Minnesota. Calculate the tax, deduct it from the payment, and remit it to the Minnesota Department of Revenue.

Do not withhold this tax if any of these exceptions apply:

  • You paid less than $2,000 in a calendar year to a nonresident public speaker.
  • You paid less than $600 in a calendar year to a nonresident entertainer or entertainment entity.
  • You received a completed Form MWR, Reciprocity Exemption/Affidavit of Residency, from a Michigan or North Dakota entertainer or entertainment entity.

How do I file and pay the tax?

By the end of the month following the performance, file Form ETD, Nonresident Entertainer Tax, Promoter’s Deposit Form. If you file one or more Forms ETD this year, file Form ETA, Nonresident Entertainer Tax, Promoter’s Annual Reconciliation, by January 31 of the following year. When filing Form ETA, attach copies of all federal Forms 1099-MISC you issued to entertainers or entities.

To pay the tax, log in to your e-Services account. Do not report or pay the nonresident entertainer tax with the income tax you withhold from your employees.

For more information, see Withholding Fact Sheet 11 – Nonresident Entertainer Tax.