Article: 50479

Overview 

If you are a resident of Minnesota or Montana and earned wages or salary in North Dakota, you may be eligible for a reciprocity exemption under tax agreements between the states. To claim this exemption, you must complete the Reciprocity section in the General Information and Income Adjustments form within your North Dakota return. 

What Is Tax Reciprocity? 

North Dakota has income tax reciprocity agreements with Minnesota and Montana. If you are a resident of one of these states, your wages earned in North Dakota are not taxable by North Dakota—as long as: 

• You did not reside in North Dakota at any time during the year, and 

• You filed a reciprocity exemption form (Form NDW-R) with your North Dakota employer, and 

• You are filing a nonresident North Dakota return only to report other taxable income, if applicable. 

Note: Reciprocity applies only to wage and salary income—not to self-employment, business, or rental income. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select North Dakota. 

4. Click on the General tab. 

5. Select General Information and Income Adjustments to open the screen. 

6. Scroll to the Reciprocity – Minnesota and Montana Residents Only section. 

Select the applicable option from the four presented (e.g.): 

• Full-year resident of MN/MT who filed Form NDW-R 

• Resident but did not file Form NDW-R and are now reporting income. 

• Other applicable scenarios 

•  Click Save once complete. 

Additional Resources 

For further guidance, see: 2024 North Dakota Individual Income Tax Booklet (PDF)