Live in North Dakota, Work Remotely for a Connecticut Employer: Who Taxes You?
Answer
Your home state takes it and the work state does not. Connecticut levies no tax on wages; North Dakota taxes residents on all income regardless of where it was earned. The result is a single North Dakota resident return covering the full amount, with no offsetting credit.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Connecticut takes nothing, but North Dakota still taxes residents on income earned anywhere, so the full amount lands on your North Dakota return.
What you file
- 1Resident return · North Dakota
File a North Dakota resident return reporting all of your income.
The two states, side by side
| North Dakota | Connecticut | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 2 (Form NDW-R) | None |
| Convenience rule | No | Only against convenience-rule states |
| Nonresident return | Form ND-1 with Schedule ND-1NR | Form CT-1040NR/PY |
| Credit for other-state tax | Schedule ND-1CR | Schedule 2 (Form CT-1040) |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | North Dakota Office of State Tax Commissioner | Connecticut Department of Revenue Services |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Connecticut and working in North Dakota 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: North Dakota → ConnecticutBoth states — credit offsets the double tax
- 1099 contractor: North Dakota → ConnecticutHome state, plus the client state if you work there
- Moved mid-year: North Dakota → ConnecticutTwo part-year returns
Other North Dakota pairs
Questions people actually ask
I live in North Dakota and work remotely for a Connecticut employer. Which state do I pay?
Your home state takes it and the work state does not. Connecticut levies no tax on wages; North Dakota taxes residents on all income regardless of where it was earned. The result is a single North Dakota resident return covering the full amount, with no offsetting credit.
Which state should my employer be withholding for?
North Dakota. Your employer should withhold North Dakota tax rather than Connecticut tax on these wages. If a Connecticut line is showing on your pay stub, raise it with payroll now rather than at filing time.
Does my Connecticut employer's location alone create a Connecticut tax obligation?
No. Connecticut 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 Connecticut are a different matter — those are Connecticut-source income and can require a nonresident return.
How current is this?
The North Dakota and Connecticut rules on this page were last checked against North Dakota Office of State Tax Commissioner and Connecticut Department of Revenue Services 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.
- North Dakota Office of State Tax Commissioner — individual income taxaccessed 2026-08-07
- Connecticut Department of Revenue Services — individual income taxaccessed 2026-08-07