Live in Minnesota, Work Remotely for a Nevada Employer: Who Taxes You?
Answer
Minnesota taxes the income and Nevada cannot. Residency, not the location of the job, drives this answer: Minnesota reaches all of a resident's income, and Nevada 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. Nevada 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 | Nevada | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | 2 (Form MWR) | None |
| Convenience rule | No | No |
| Nonresident return | Form M1 with Schedule M1NR | Not applicable |
| Credit for other-state tax | Schedule M1CR | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | Minnesota Department of Revenue | Nevada Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Nevada and working in Minnesota gives:No state income tax on your wages.
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 → NevadaHome state only
- 1099 contractor: Minnesota → NevadaHome state only — estimated payments
- Moved mid-year: Minnesota → NevadaOne part-year return — the state you left
Other Minnesota pairs
Questions people actually ask
I live in Minnesota and work remotely for a Nevada employer. Which state do I pay?
Minnesota taxes the income and Nevada cannot. Residency, not the location of the job, drives this answer: Minnesota reaches all of a resident's income, and Nevada 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 Nevada tax on these wages. If a Nevada line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Minnesota and Nevada rules on this page were last checked against Minnesota Department of Revenue and Nevada Department of Taxation 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
- Nevada Department of Taxation — individual income taxaccessed 2026-08-07