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Last Updated: 12/23/2014


Reciprocity Agreements

Minnesota has income tax reciprocity agreements with Michigan and North Dakota. The agreements simplify income tax filing for taxpayers who live in one state and work in another.

If you work in Minnesota but are a resident Michigan or North Dakota, your “personal service” (work) income is taxed only by your home state. Similarly, if you are a Minnesota resident but work in one of the other two states, your work income is taxed only by Minnesota..

You do not have to file or pay Minnesota income tax if all of the following are true:

  • You were a full-year resident of Michigan or North Dakota.
  • You returned to your home state at least once a month.
  • Your only Minnesota income was from the performance of personal services (wages, salaries, tips, commissions or bonuses).

Income Tax reciprocity between the states of Minnesota and Wisconsin ended Jan. 1, 2010.

If you qualify for reciprocity, and Minnesota taxes are withheld from your pay, you can file a Minnesota return to get a refund. For more information, see Reciprocity Income Subtraction or view Reciprocity (Income Tax Fact Sheet 4).