Live in New York, Work Remotely for a Minnesota Employer: Who Taxes You?
Answer
New York taxes the income and Minnesota cannot. Residency, not the location of the job, drives this answer: New York reaches all of a resident's income, and Minnesota has no personal income tax to apply to the part earned inside its borders.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. New York reaches all of a resident's income, and Minnesota adds nothing on top.
What you file
- 1Resident return · New York
File a New York resident return reporting all of your income.
The two states, side by side
| New York | Minnesota | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 2 (Form MWR) |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form IT-203 | Form M1 with Schedule M1NR |
| Credit for other-state tax | Form IT-112-R | Schedule M1CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | New York State Department of Taxation and Finance | 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 York gives:Convenience-of-the-employer rule — both states tax you.
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 York → MinnesotaBoth states — credit offsets the double tax
- 1099 contractor: New York → MinnesotaHome state, plus the client state if you work there
- Moved mid-year: New York → MinnesotaTwo part-year returns
Other New York pairs
Questions people actually ask
I live in New York and work remotely for a Minnesota employer. Which state do I pay?
New York taxes the income and Minnesota cannot. Residency, not the location of the job, drives this answer: New York reaches all of a resident's income, and Minnesota has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
New York. Your employer should withhold New York tax rather than Minnesota tax on these wages. If a Minnesota line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Minnesota employer's location alone create a Minnesota tax obligation?
No. Minnesota 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 Minnesota are a different matter — those are Minnesota-source income and can require a nonresident return.
How current is this?
The New York and Minnesota rules on this page were last checked against New York State Department of Taxation and Finance 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 York State Department of Taxation and Finance — individual income taxaccessed 2026-08-07
- Minnesota Department of Revenue — individual income taxaccessed 2026-08-07