Reciprocal States and Taxes

Minnesota has income tax reciprocity agreements with three states: Wisconsin, North Dakota, and Michigan. As a resident of one of these states, if you do not want Minnesota taxes withheld from the wages you earn for work at the University of Minnesota, you must complete Form MW-R, Reciprocity Exemption/Affidavit of Residency, each year and send it to Payroll Services. The University will withhold your taxes from the reciprocal state.

A new MW-R form MUST be filed by February 28th of the following year to continue the tax withholding in the reciprocal state. If the form is not received by Payroll Services, Minnesota State tax will be withheld from your wages.

Rules for Withholding Reciprocal State Tax:

• If you are a resident of Wisconsin and wish to claim WI state allowances other than those claimed for Federal withholding, please file Form WT-4 with your Form MW-R.
• If you are a resident of North Dakota and wish to have ND tax withheld, please send a statement to Payroll Services along with your Form MW-R indicating that ND state tax should be withheld.
• If you are a resident of Michigan, please file Form MI-W4 with Payroll Services, along with form MW-R, if you wish to claim MI state tax allowances other than zero exemptions.

See the tax tables below for the states of Wisconsin, North Dakota, and Michigan.

• Employe's Wisconsin Withholding Exemption Certificate — Form WT-4 (pdf)
• Employee's Michigan Withholding Exemption Certificate — Form MI-W4 (pdf)
• MW-R Reciprocity Exemption/Affidavit of Residency (pdf)
• Michigan State Tax Table (pdf)
• North Dakota State Table (pdf)
• Wisconsin State Tax Table (pdf)

Each state provides more detailed information on reciprocity, filing status, and tax returns.

• Wisconsin FAQ - Recoprocity and Working in Another State
• Michigan - See page 7 of the MI Form 1040 Instructions (pdf)
• Minnesota Reciprocity and Filing Status
• North Dakota FAQ - Resident of ND but Living in MN

Minnesota State Tax

Minnesota follows federal rules for determining the number of allowances to claim for MN state tax withholding purposes. According to Minnesota regulations (MN Statute, section 290.92, subd 5, par 1), the number of allowances claimed for Minnesota State withholding cannot exceed the number claimed for federal withholding purposes. Minnesota State taxes are calculated using the Minnesota Withholding Computer formula.

For more information on how to claim W-4 allowances for Minnesota State tax withholding purposes, see Minnesota Form W-4 Information.