Live in Minnesota, Work Remotely for a Mississippi Employer: Who Taxes You?
Answer
Minnesota taxes the income and Mississippi cannot. Residency, not the location of the job, drives this answer: Minnesota reaches all of a resident's income, and Mississippi has no personal income tax to apply to the part earned inside its borders.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Mississippi takes nothing, but Minnesota still taxes residents on income earned anywhere, so the full amount lands on your Minnesota return.
What you file
- 1Resident return · Minnesota
File a Minnesota resident return reporting all of your income.
The two states, side by side
| Minnesota | Mississippi | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — flat |
| Reciprocity partners | 2 (Form MWR) | None |
| Convenience rule | No | No |
| Nonresident return | Form M1 with Schedule M1NR | Form 80-205 |
| Credit for other-state tax | Schedule M1CR | Form 80-160 |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Minnesota Department of Revenue | Mississippi Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Mississippi and working in Minnesota gives:Home state only.
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: Minnesota → MississippiBoth states — credit offsets the double tax
- 1099 contractor: Minnesota → MississippiHome state, plus the client state if you work there
- Moved mid-year: Minnesota → MississippiTwo part-year returns
Other Minnesota pairs
Questions people actually ask
I live in Minnesota and work remotely for a Mississippi employer. Which state do I pay?
Minnesota taxes the income and Mississippi cannot. Residency, not the location of the job, drives this answer: Minnesota reaches all of a resident's income, and Mississippi has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
Minnesota. Your employer should withhold Minnesota tax rather than Mississippi tax on these wages. If a Mississippi line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Mississippi employer's location alone create a Mississippi tax obligation?
No. Mississippi sources wages to the place where the work is physically performed, and it does not apply a convenience-of-the-employer rule that would override that. Days you actually spend working inside Mississippi are a different matter — those are Mississippi-source income and can require a nonresident return.
How current is this?
The Minnesota and Mississippi rules on this page were last checked against Minnesota Department of Revenue and Mississippi 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.
- Minnesota Department of Revenue — individual income taxaccessed 2026-08-07
- Mississippi Department of Revenue — individual income taxaccessed 2026-08-07