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Minnesotaworking inNorth Dakota
Reciprocity — home state withholds for you

North Dakota

Work State Tax Rate
Top 2.5% (among the lowest; restructuring to 3 brackets in 2026)
Withholding Starts
N/A (reciprocity)
Law Last Updated
Jan 1, 2026

Employee Obligations (Which Returns YOU Must File)

Minnesota has a reciprocity agreement with North Dakota. If your only income from North Dakota is wages, salary, tips, or commissions, file your Minnesota return only — no North Dakota return needed. Give your North Dakota employer your reciprocity form (Form MWR) each year.

Employer Obligations (What Your Employer Must Withhold & Remit)

Reciprocity applies. If the employee provides the reciprocity form (Form MWR), withhold Minnesota tax instead of North Dakota tax. Must still register for North Dakota unemployment insurance. If the employee provides Form NDW-R, withhold Minnesota tax instead of North Dakota tax. Register for ND unemployment. Workers' comp is a monopolistic state — must buy from the state fund. Unemployment applies to the first $43,800 of wages.

Reciprocity Agreement — File Home State Only for Wages

Minnesota has a reciprocity agreement with North Dakota. For wage income, you only need to file your Minnesota return. Give your employer the reciprocity form (Form MWR) each year to avoid North Dakota withholding.

Employee/Individual Tax Source: https://www.tax.nd.gov/
Row last reviewed: May 8, 2026Home state credit form: Schedule M1CR

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.