Reciprocity for Partnerships

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

However, the income earned by a partnership does not qualify for exemption under the reciprocity agreements. If a partnership does business in a reciprocity state and the sole partner is a Minnesota resident, the partner would be required to file a return in both states.

For more information, see our Reciprocity fact sheet.