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Indiana
Employee Obligations (Which Returns YOU Must File)
If you physically work in Indiana, file a nonresident Indiana return (tax rate: Flat 3.0% (2025), 2.95% (2026)). Then file your Minnesota return and claim the Schedule M1CR credit so you don't get taxed twice on the same income.
Employer Obligations (What Your Employer Must Withhold & Remit)
Register for withholding and unemployment. Must also withhold county income tax. Unemployment applies to the first $9,500 of wages.
City & Local Income Taxes (Extra Filings Beyond the State Return)
All 92 Indiana counties charge income tax on nonresidents ranging from 0.5% to 2.9%. Combined state plus county can reach approximately 5.9%. The M1CR credit does NOT cover county taxes. Separate county withholding is required.
Related guides
More from Minnesota · Cross-State Work
- Minnesota → Mississippi
- Minnesota → Montana
- Minnesota → North Carolina
- Minnesota → North Dakota
- Minnesota → Nebraska
Moving to Indiana from elsewhere · Cross-State Work
This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.