State Income Tax Deductions
Minnesota follows federal rules for determining the number of allowances to claim for Minnesota tax withholding purposes. According to Minnesota regulations, the number of allowances you claim for Minnesota withholding cannot exceed the number you claim for federal withholding. Minnesota taxes are calculated using the Minnesota Withholding Computer Formula (pdf).
If you claim the same number of allowances for both state and federal taxes, you can use the federal Form W-4. If you fill out your W-4 online (from the My Pay tab in MyU, click on W-4 Tax Information), you will automatically complete both forms.
If you claim different allowances, or an additional tax amount, you should complete Minnesota Form W-4MN (pdf) in addition to a W-4.
To update your W-4 marital status and allowances, log in to the My Pay tab in MyU, then click on W-4 Tax Information near the bottom of the page..
For more information about Minnesota withholding and individual income tax, see the following:
- Minnesota residency and filing requirements (pdf)
- Part-year residents
- Foreign income exclusion for Minnesota residents
- Nonresident aliens and Minnesota taxes
- Minnesota reciprocity and filing status
Minnesota has income tax reciprocity agreements with two states: North Dakota and Michigan. If you are a resident of North Dakota or Michigan and you do not want Minnesota taxes withheld from your University of Minnesota wages, you must complete Form MW-R Reciprocity Exemption/Affidavit of Residency (pdf) each year and send it to Payroll Services. The University will withhold your taxes from the reciprocal (resident) state.
Annual Filing Deadline Date
If you file an MW-R Reciprocity Exemption/Affidavit of Residency, the document expires on February 28 of the following year. (For example, if you complete the affidavit in 2016, it will expire February 28, 2017.) To continue your reciprocity in the new tax year, you will need to fill out a new form at the beginning of the year—no later than February 15—to continue tax withholding in the reciprocal state. If Payroll Services hasn’t received your new MW-R Reciprocity Exemption/Affidavit of Residency (pdf) form by that date, Minnesota tax will be withheld from your wages until a new form is filed.
- If you are a resident of North Dakota and want to have North Dakota tax withheld, please send a statement to Payroll Services along with your Form MW-R indicating that North Dakota tax should be withheld.
- North Dakota FAQ - Resident of ND but living in MN
- North Dakota State Table (pdf)
- MW-R Reciprocity Exemption/Affidavit of Residency (pdf)
- If you are a resident of Michigan, please file Form MI-W4 with Payroll Services, along with form MW-R, if you want to claim Michigan tax allowances other than zero exemptions.
- For forms and information about Michigan reciprocity, visit the Income Tax Forms page of the Michigan Department of Treasury.
The University of Minnesota withholds the following states' income taxes for employees working in those states:
Call 4-UOHR (612-624-8647, or 800-756-2363 in Greater Minnesota) for more information.