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Last Updated: 1/8/2014

Withholding for Residents of Reciprocity States

​Minnesota has income tax reciprocity agreements with Michigan and North Dakota. If you have an employee who’s a resident of one of those states, you’re not required to withhold Minnesota income tax from their wages.

The employee must give you a properly completed Form MWR, Reciprocity Exemption/Affidavit of Residency, each year. You must send copies to the Department of Revenue of all Form(s) MWR you receive.

Minnesota Revenue
Mail Station 6501
St. Paul, MN 55146-6501

If you employ a resident of Michigan or North Dakota, they may ask you to withhold income tax for their state of residence. While you’re not required to do so, we encourage you to withhold as a courtesy to your employee. If you agree to withhold, contact the appropriate state for further information.

Go to the Michigan Treasury Department website.

Go to the North Dakota State Tax Commissioner website.

For more information, see Fact Sheet 20, Reciprocity.