Residency

Minnesota residency is generally defined by domicile (permanent residency) or the 183-day rule. In determining residency, we will consider both your words and actions, with actions carrying more weight than words.

If you maintain a home in Minnesota, but claim residency elsewhere, you must keep adequate records to verify that you spent more than half of the year out of state. Records include planners, calendars, plane tickets, canceled checks, credit card statements, and other receipts.

Your “domicile” is the place you intend to make your home permanently or for an indefinite period of time. Once you establish a domicile in Minnesota, it continues until you take action to change it. If you move out of Minnesota but do not intend to permanently remain in another state or country, you continue to be a Minnesota resident.

You’re considered a Minnesota resident for tax purposes (even if you have permanent residency in another state) if you meet both of these conditions:

• You spend at least 183 days in Minnesota during the year (any part of a day counts as a full day)
• You or your spouse rent, own, maintain, or occupy a residence in Minnesota suitable for year-round use and equipped with its own cooking and bathing facilities

If both conditions apply for the entire year, you must follow the filing requirements for a full-year Minnesota resident.

If you meet the first condition, but the second condition applies for less than the full year, you are considered a part-year resident for the time the second condition applies. You must follow the filing requirements for a part-year Minnesota resident.

Exceptions to the 183-Day Rule

The 183-day rule does not apply in these situations:

• Members of the military (or their spouses) who are stationed in Minnesota but are permanent residents of another state
• Residents of Michigan and North Dakota (these states have tax reciprocity agreements with Minnesota)

Changing legal residence requires:

• Physical presence in a new location
• Intent to remain there permanently or indefinitely

Part-year Residents

You are considered a part-year resident if, during the year, you either:

• Moved into Minnesota with the intention of remaining
• Moved out of Minnesota and established a permanent residence elsewhere

For details, see Income Tax Fact Sheet 2, Part-Year Residents.

Nonresidents

You are considered a nonresident if you earn income in Minnesota, but are a permanent resident of another state or country. For details, see Income Tax Fact Sheet 3, Nonresidents.

Reciprocity

Minnesota has reciprocity agreements with Michigan and North Dakota. These agreements cover only personal service income such as wages, salaries, tips, commissions, and bonuses. For details, see Income Tax Fact Sheet 4, Reciprocity.

Foreign Income

If you earned income in a foreign country, you may qualify for the federal foreign earned income exclusion. If you qualify and your foreign earned income is excluded on your federal return, Minnesota will not tax this income. You must still file a Minnesota return.

Some individuals (such as federal employees) may not qualify for the federal earned income exclusion. Others may have earned income above the federal threshold or have unearned income that does not qualify for the federal exclusion. In these cases, you may be able to exclude income on your Minnesota return by qualifying as a nonresident.

You are considered a nonresident if:

• You do not homestead property in Minnesota
• You have been outside the United States for at least 330 days during a 12-month period

You will pay tax only if you have income derived from Minnesota sources. For details on what kinds of income Minnesota taxes, see Income Tax Fact Sheet 2, Part-Year Residents, and Income Tax Fact Sheet 3, Nonresidents.

Military Personnel

Members of the military and their spouses remain permanent residents of the state where they have established permanent residency until they take the needed steps to change their residency. For details, see Income Tax Fact Sheet 5, Military Personnel - Residency.

Students

Students remain residents of the state in which they have established permanent residency (even if they attend school full-time in another state) unless they take steps to establish a new residency. If you are a resident of another state attending school in Minnesota, you may be considered a Minnesota resident under the 183-day rule.

Note: The 183-day rule does not apply to students who are residents of a reciprocity state – Michigan or North Dakota. For details, see Income Tax Fact Sheet 4, Reciprocity.

If you are a nonresident, you must pay Minnesota tax on any income earned from work performed in Minnesota.