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Last Updated: 12/29/2016

Nonresidents

You’re considered a nonresident of Minnesota if you meet both of the following conditions:
  • You’re a permanent resident of another state or country, and
  • You’ve spent less than 183 days in Minnesota
If you are a nonresident you may still need to file a Minnesota tax return.  The wage or salary income you earn while physically in the state may be taxable. If you’re working in another state for a business located in Minnesota, that income is not taxable in Minnesota. For more information, see How Nonresident Income is Taxed by Minnesota.
 
Note: If you’re a resident of Michigan or North Dakota but work in Minnesota, you may not have to file a Minnesota tax return. For more information, see Reciprocity.
 

Special rules for certain nonresident employees

If you’re a nonresident and are employed in the transportation, airline, or shipping industries, special rules may apply to work-related income you earn in Minnesota.
 
  • Interstate transportation employees
    Compensation paid by interstate rail or motor carrier companies to employees who regularly work in more than one state can only be taxed by their state of residence. See 49 U.S.C. § 14503(a) (motor carriers) and 49 U.S.C. § 11502 (rail carriers). If these employees are nonresidents, they do not have to file or pay Minnesota income tax on the work-related income earned in Minnesota. 
  • Water carriers
    Compensation paid to employees of water carriers and merchant mariners who regularly perform work in more than one state can be taxed only by their state of residence and a state in which 50 percent of the employee’s duties are performed in the year. See 49 U.S.C. § 14503(b)(2). If these employees are nonresidents, they must file and pay Minnesota income tax only if more than 50 percent of their work time is earned in Minnesota.
  • Airline employees
    Compensation paid by an air carrier to employees who regularly work in more than one state can be taxed only by their state of residence and the state where they earn more than 50 percent of their work-related income. See 49 U.S.C. § 40116(f)(2). If these employees are nonresidents, they must file and pay Minnesota income tax only if more than 50 percent of their flight time is earned in Minnesota. 
  • Self-employed transportation workers
    The federal laws mentioned above do not apply to self-employed transportation workers – such as independent truckers hauling goods. However, they can still be taxed under the single-sales factor apportionment method. For details on the single-sales apportionment factor, see Corporation Franchise Tax instructions.