Michigan / Minnesota tax reciprocity
Each pair below is taxed by the RESIDENCE state, not the work state — the work state agrees not to withhold. Figures are illustrative, on a $75,000 salary.
Who taxes you, and what to file
The certificate goes to your employer in the state you work in. Figures are state income tax on $75,000, single, no dependents.
| Work in | Live in | Certificate to file | Tax under reciprocity | If the work state taxed you |
|---|---|---|---|---|
| Michigan | Minnesota | No state form (employer-developed form or letter; MI-W4 line 8b) | $3,577 | $2,937 |
| Minnesota | Michigan | MWR | $2,937 | $3,577 |
The last column is hypothetical — what the work state would take with no agreement in place. It is not a second bill.
Conditions you have to meet
This calculator cannot check these. The figures above assume they are met.
- Work in Minnesota, live in Michigan
- The employee must return to their permanent residence at least ONCE A MONTH. Form MWR is explicit: answering no to this question disqualifies the exemption.
Does this cancel the local city or county tax?
Reciprocity is a state income tax concept. A local wage tax is a separate levy and can survive it.
- Working in Michigan
- RAB 2017-13: "Reciprocal agreements do not apply to independent contractors, local taxes, or income other than compensation." Michigan city income taxes therefore survive reciprocity.
Sources
- Michigan: Michigan Dept. of Treasury — Revenue Administrative Bulletin 2017-13 — https://www.michigan.gov/taxes/rep-legal/rab/2017-revenue-administrative-bulletins/revenue-administrative-bulletin-2017-13
- Minnesota: Minnesota Dept. of Revenue — Reciprocity, Employee Withholding (Withholding Fact Sheet 20) — https://www.revenue.state.mn.us/reciprocity-employee-withholding
Run your own Michigan / Minnesota numbers
Opens on work in Michigan, live in Minnesota. Change the salary, either state, or filing status below.
Michigan / Minnesota: common questions
Does Michigan tax Minnesota residents who work there?
No. Michigan does not withhold its state income tax from a Minnesota resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Minnesota instead. File No state form (employer-developed form or letter; MI-W4 line 8b) with your Michigan employer to stop the withholding. Source: Michigan Dept. of Treasury — Revenue Administrative Bulletin 2017-13.
Does Minnesota tax Michigan residents who work there?
No. Minnesota does not withhold its state income tax from a Michigan resident's wages under the reciprocity relationship in effect for 2026 — that income is taxed by Michigan instead. File MWR with your Minnesota employer to stop the withholding. Source: Minnesota Dept. of Revenue — Reciprocity, Employee Withholding (Withholding Fact Sheet 20).
Does reciprocity also cancel the local city or county tax?
Not necessarily — reciprocity is a state income tax concept, and a local wage tax is a separate levy that can survive it. Michigan: RAB 2017-13: "Reciprocal agreements do not apply to independent contractors, local taxes, or income other than compensation." Michigan city income taxes therefore survive reciprocity.
Are there conditions I have to meet to qualify?
Yes — and this calculator cannot check them for you, so confirm each one applies before relying on the figures above. Working in Minnesota while living in Michigan: The employee must return to their permanent residence at least ONCE A MONTH. Form MWR is explicit: answering no to this question disqualifies the exemption.
Does reciprocity cover self-employment or 1099 income?
No. Reciprocity covers employee compensation only, and the scope is set by each state's own materials rather than by a common rule — covers employee compensation (salaries, wages, commissions) only — expressly NOT independent contractors. Self-employment income, rental income, gambling winnings and pass-through income are outside it, and may still require a nonresident return in the work state.
Other pairs involving these states
See all 32 state reciprocity pairs →