1099 Contractor in New Hampshire with a Minnesota Client: Where Do You File?
Answer
One state at most. New Hampshire does not tax earned income; Minnesota does, but only what is sourced to Minnesota. For a contractor working entirely from New Hampshire, that source amount is normally zero regardless of where the invoices are sent.
Last verified
Two things make this pairing simple. New Hampshire levies no personal income tax, so there is no resident return; and Minnesota taxes nonresidents only on services actually performed inside Minnesota, which for a fully remote contractor is normally nothing.
Minnesota publishes no de minimis day count or dollar floor for nonresidents. Any Minnesota-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the Minnesota Department of Revenue nonresident instructions before filing.
What you file
- 1Nonresident return · MinnesotaForm M1 with Schedule M1NR
File a Minnesota nonresident return only for income from services you physically performed in Minnesota. New Hampshire does not tax wage or self-employment income.
The two states, side by side
| New Hampshire | Minnesota | |
|---|---|---|
| Taxes wages | No | Yes — graduated |
| Reciprocity partners | None | 2 (Form MWR) |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Form M1 with Schedule M1NR |
| Credit for other-state tax | No income tax | Schedule M1CR |
| Nonresident safe harbour | Not applicable | None published |
| Local income tax | No | No |
| Revenue department | New Hampshire Department of Revenue Administration | Minnesota Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Minnesota and working in New Hampshire gives:Home state only — estimated payments.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: New Hampshire → MinnesotaWork state only
- Remote worker: New Hampshire → MinnesotaNo state income tax on your wages
- Moved mid-year: New Hampshire → MinnesotaOne part-year return — the state you moved to
Other New Hampshire pairs
Questions people actually ask
I live in New Hampshire and my client is in Minnesota. Do I have to file a Minnesota tax return?
One state at most. New Hampshire does not tax earned income; Minnesota does, but only what is sourced to Minnesota. For a contractor working entirely from New Hampshire, that source amount is normally zero regardless of where the invoices are sent.
Do reciprocity agreements help a 1099 contractor?
No. Every state reciprocity agreement in the country is an arrangement about wage withholding between two revenue departments, and a 1099 has no withholding to switch off. Whether New Hampshire and Minnesota hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The New Hampshire and Minnesota rules on this page were last checked against New Hampshire Department of Revenue Administration and Minnesota Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07
- Minnesota Department of Revenue — individual income taxaccessed 2026-08-07