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North Dakotaworking inMinnesota
Reciprocity — home state withholds for you

Minnesota

Work State Tax Rate
5.35%-9.85%
Withholding Starts
N/A (home state)
Law Last Updated
PFML Jan 1, 2026

Employee Obligations (Which Returns YOU Must File)

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

Employer Obligations (What Your Employer Must Withhold & Remit)

Reciprocity applies. If the employee provides the reciprocity form (NDW-R), withhold North Dakota tax instead of Minnesota tax. Must still register for Minnesota unemployment insurance. Register for Minnesota withholding and unemployment. PFML starting January 1, 2026: employer pays at least 0.44% (total rate 0.88%) on wages up to $185,000. Process Form MWR for Michigan and North Dakota employees.

City & Local Income Taxes (Extra Filings Beyond the State Return)

No local income tax anywhere in Minnesota.

Other Paycheck Deductions (Disability, Paid Leave, Unemployment)

PFML approximately 0.44% starting January 1, 2026.

Reciprocity Agreement — File Home State Only for Wages

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

Row last reviewed: Apr 17, 2026Home state credit form: Schedule ND-1CR

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.