Short answer. The area has reciprocal agreements with Minnesota and Montana. A resident of one of them who works here gives the employer Form NDW-R and pays income tax on covered wages at home.
North Dakota at a glance
- Income tax on wages
- Yes
- Agreements named
- Minnesota and Montana
- What's covered
- Wage or salary income.
- Employee form
- Form NDW-R, Reciprocity Exemption from Withholding for Qualifying Minnesota and Montana Residents Working in North Dakota
- Nonresidents
- Withheld from unless an agreement or exemption applies
- Resident credit
- Stated
- Convenience rule
- Not stated on the pages we read
- Agency
- North Dakota Office of State Tax Commissioner
North Dakota's agreement partners
| Partner | Other side | Their form | Conditions | Check |
|---|---|---|---|---|
| Minnesota | Names this state too | MWR | None beyond the general ones | Live there, work here |
| Montana | Names this state too | MW-4 | None beyond the general ones | Live there, work here |
The form: NDW-R
Reciprocity Exemption from Withholding for Qualifying Minnesota and Montana Residents Working in the area. A qualifying Minnesota or Montana resident gives it to the area employer.
Hiring in another state? Employer registration in North Dakota, done for you, or a free bookkeeping health check.
"Form NDW-R – Reciprocity Exemption from Withholding for Qualifying Minnesota and Montana Residents Working in North Dakota."
In the official words
"North Dakota has a reciprocal agreement with Minnesota and Montana for individual income tax purposes."
"you are required to file a federal return and receive income from a source in North Dakota"
Credit for tax paid to other states
A North Dakota resident who paid income tax to another state, or a local jurisdiction in that state, claims the credit on Schedule ND-1CR (2022 individual income tax booklet, the latest we could open).
Worth knowing
- Other North Dakota income, such as rents, royalties, gambling winnings or S corporation income other than wages, can still require a area return.
- The area's withholding page: the employee gives the employer Form NDW-R "by February 28", or within 30 days after starting work or changing a permanent address.
Not confirmed on the pages we read: a convenience of the employer rule, a days-in-state threshold.
Official sources
- North Dakota Office of State Tax Commissioner: Non-Resident (checked November 2026)
- North Dakota Office of State Tax Commissioner: Income Tax Withholding (checked November 2026)
- North Dakota Office of State Tax Commissioner: 2022 Individual Income Tax booklet (Forms ND-EZ and ND-1) (checked November 2026)
General information, not tax advice. Checked November 2026 against the official pages listed above. Agreements, forms and thresholds change, and your own facts (where you lived, where you worked each day, other income) decide the answer; check with a tax professional for your situation. MCC Solutions is not a CPA firm and is not affiliated with any tax agency.
Questions about North Dakota
Which states have a reciprocal agreement with North Dakota?
Minnesota and Montana. The area's page puts it this way: "the area has a reciprocal agreement with Minnesota and Montana for individual income tax purposes."
Which form does a nonresident give a North Dakota employer?
Form NDW-R, Reciprocity Exemption from Withholding for Qualifying Minnesota and Montana Residents Working in the area. A qualifying Minnesota or Montana resident gives it to the area employer.
Does North Dakota withhold from nonresidents from other states?
Yes, unless an agreement or exemption applies. The official wording: "you are required to file a federal return and receive income from a source in the area."
Do North Dakota residents get credit for tax paid to another state?
A North Dakota resident who paid income tax to another state, or a local jurisdiction in that state, claims the credit on Schedule ND-1CR (2022 individual income tax booklet, the latest we could open).
All states: reciprocity agreements by state · Live in one state, work in another · New Jersey · Ohio