Live in North Dakota, Work in Utah: Which State Taxes Your Paycheck?
Answer
Utah withholds and North Dakota credits. Without an agreement between them, both states are entitled to tax income earned in Utah by a North Dakota resident. The mechanism that stops you paying twice is the credit on the North Dakota resident return, which is why the Utah return has to be completed first.
Last verified
Without an agreement between North Dakota and Utah, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Utah figure is an input to the North Dakota return, so completing North Dakota first means doing it twice.
A North Dakota resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule ND-1CR. The credit is capped at the North Dakota tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · UtahForm TC-40 with Schedule TC-40B
File the Utah nonresident return FIRST — you need the Utah tax figure before you can complete North Dakota.
- 2Resident return · North DakotaSchedule ND-1CR
File a North Dakota resident return reporting all income, then claim the credit for tax paid to Utah. The credit is capped at what North Dakota would have charged on that same income, so if Utah taxes it at a higher rate the difference is not refunded.
The two states, side by side
| North Dakota | Utah | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — flat |
| Reciprocity partners | 2 (Form NDW-R) | None |
| Convenience rule | No | No |
| Nonresident return | Form ND-1 with Schedule ND-1NR | Form TC-40 with Schedule TC-40B |
| Credit for other-state tax | Schedule ND-1CR | Schedule TC-40S |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | North Dakota Office of State Tax Commissioner | Utah State Tax Commission |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Utah and working in North Dakota gives:Both states — credit offsets the double tax.
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.
- Remote worker: North Dakota → UtahHome state only
- 1099 contractor: North Dakota → UtahHome state, plus the client state if you work there
- Moved mid-year: North Dakota → UtahTwo part-year returns
Other North Dakota pairs
Questions people actually ask
I live in North Dakota and work in Utah. Which state takes the tax out of my paycheck?
Utah withholds and North Dakota credits. Without an agreement between them, both states are entitled to tax income earned in Utah by a North Dakota resident. The mechanism that stops you paying twice is the credit on the North Dakota resident return, which is why the Utah return has to be completed first.
Which state should my employer be withholding for?
Utah. The wages are sourced to Utah, so Utah withholding is correct and there is no North Dakota withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. North Dakota gives residents a credit for tax paid to Utah on the same income, claimed on Schedule ND-1CR. The credit is capped at the North Dakota tax on that income, so if Utah taxes it more heavily the excess is not refunded by either state.
How current is this?
The North Dakota and Utah rules on this page were last checked against North Dakota Office of State Tax Commissioner and Utah State Tax Commission 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
- Utah State Tax Commission — individual income taxaccessed 2026-08-07