Live in Minnesota, work in North Dakota
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State income tax: $5,277 a year
Living in Minnesota and working in North Dakota, you'd pay about $5,277 in state income tax on $100,000 of wages.
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State tax at different salaries
| Wages | To ND | To MN | Total | If you worked in MN |
|---|---|---|---|---|
| $50,000 | $0 | $1,877 | $1,877 | $1,877 |
| $75,000 | $0 | $3,577 | $3,577 | $3,577 |
| $100,000 | $0 | $5,277 | $5,277 | $5,277 |
| $150,000 | $0 | $8,942 | $8,942 | $8,942 |
| $250,000 | $0 | $17,439 | $17,439 | $17,439 |
Single filer, all wages earned in North Dakota, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Reciprocity: MN residents working in ND exempt from ND tax on wages; file Form NDW-R annually.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Frequently asked questions
Do I pay North Dakota income tax if I live in Minnesota?
No. Under the reciprocity agreement you pay only Minnesota. MN residents working in ND exempt from ND tax on wages; file Form NDW-R annually.
Do I have to file taxes in both Minnesota and North Dakota?
Usually you file only one state return (a resident return in Minnesota), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Under the reciprocity agreement only Minnesota taxes your wages: about $5,277 on $100,000.
Related
- Live in North Dakota, work in Minnesota
- Moving from Minnesota to North Dakota
- Moving from North Dakota to Minnesota
- Live in Minnesota, work in Iowa
- Live in Minnesota, work in South Dakota
- Live in Minnesota, work in Wisconsin
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.