2024 Rank: 13
2023 Rank: 11
Minnesota is the fourth-highest scoring state on the ROAM Index with an individual income tax. While it does not have day-based thresholds for filing or withholding, thresholds of $13,825 in Minnesota-sourced income would cover most short-term work. Nevertheless, the state should move towards day-based thresholds.
Minnesota’s two reciprocity agreements with Michigan and North Dakota only cover 13.6 percent of incoming commuters, as the vast majority of the state’s commuters come from Wisconsin. Unfortunately, despite both states theoretically extending unilateral offers of reciprocity, the prior agreement was paired with a revenue-sharing agreement that eventually broke down. The two states should seek to revive this agreement.
Category | Current Law | Score | Total Possible |
Filing threshold | Local wage threshold: $13,825 | 6 | 10 |
Reciprocity agreements | Michigan, North Dakota | 1.36 | 10 |
Convenience of the employer rule | None | 0 | 0 |
Individual Income Tax Code | 1.97 | 5 | |
Withholding threshold | Wage threshold: $13,825 | 6 | 10 |
Total Score | 15.33 | 35 |
Ways to Improve:
- Pass filing and withholding thresholds of greater than 30 days
- Seek reciprocity agreements with:
- Wisconsin: 60.24 percent of incoming commuters
For further ideas for how your state could improve, see our Example Remote Work Provision.
Read the report here, or click below to read how your state performs on the remote worker index.
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