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Last Updated: 3/29/2016

Reciprocity

Minnesota has income tax reciprocity agreements with Michigan and North Dakota. For people who live in one of these states and work in Minnesota, the agreements may simplify tax filing by letting them file a return only in their home state instead of in both states.

Reciprocity prevents both states from taxing the same “personal service income” (wages and other job-related income). Generally only your home state will tax the job-related income you receive from an employer in a reciprocity state.

To qualify for reciprocity, both of the following conditions must apply for the year:

  • You are a resident of Minnesota who works in Michigan or North Dakota, or you reside in Michigan or North Dakota and work in Minnesota.
  • You received personal service income (wages, salaries, tips, commissions, fees, or bonuses) from the reciprocity state.

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).

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