Live in Utah, Work in Minnesota: Which State Taxes Your Paycheck?
Answer
Expect withholding in Minnesota and a return in both. Utah and Minnesota hold no reciprocal agreement, so the overlap is resolved after the fact: Minnesota taxes the Minnesota-source wages, and your Utah resident return claims a credit for that tax against the Utah liability on the same income.
Last verified
Without an agreement between Utah and Minnesota, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Minnesota figure is an input to the Utah return, so completing Utah first means doing it twice.
A Utah resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule TC-40S. The credit is capped at the Utah 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 · MinnesotaForm M1 with Schedule M1NR
File the Minnesota nonresident return FIRST — you need the Minnesota tax figure before you can complete Utah.
- 2Resident return · UtahSchedule TC-40S
File a Utah resident return reporting all income, then claim the credit for tax paid to Minnesota. The credit is capped at what Utah would have charged on that same income, so if Minnesota taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Utah | Minnesota | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | None | 2 (Form MWR) |
| Convenience rule | No | No |
| Nonresident return | Form TC-40 with Schedule TC-40B | Form M1 with Schedule M1NR |
| Credit for other-state tax | Schedule TC-40S | Schedule M1CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Utah State Tax Commission | Minnesota Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Minnesota and working in Utah 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: Utah → MinnesotaHome state only
- 1099 contractor: Utah → MinnesotaHome state, plus the client state if you work there
- Moved mid-year: Utah → MinnesotaTwo part-year returns
Other Utah pairs
Questions people actually ask
I live in Utah and work in Minnesota. Which state takes the tax out of my paycheck?
Expect withholding in Minnesota and a return in both. Utah and Minnesota hold no reciprocal agreement, so the overlap is resolved after the fact: Minnesota taxes the Minnesota-source wages, and your Utah resident return claims a credit for that tax against the Utah liability on the same income.
Which state should my employer be withholding for?
Minnesota. The wages are sourced to Minnesota, so Minnesota withholding is correct and there is no Utah 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. Utah gives residents a credit for tax paid to Minnesota on the same income, claimed on Schedule TC-40S. The credit is capped at the Utah tax on that income, so if Minnesota taxes it more heavily the excess is not refunded by either state.
How current is this?
The Utah and Minnesota rules on this page were last checked against Utah State Tax Commission 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.
- Utah State Tax Commission — individual income taxaccessed 2026-08-07
- Minnesota Department of Revenue — individual income taxaccessed 2026-08-07