If you live in one state and work in another and if they both have a reciprocity agreement, then you will only pay income tax for the state you live in.
Taking advantage of these agreements can help you save a lot of money. One good example is North Dakota and Minnesota. The income tax rate in Minnesota tops out at 9.85% and North Dakota's max rate is only at 2.5%. You could live in North Dakota and work in Minnesota and only have to pay the 2.5% that North Dakota charges.
Taxation is theft.
If you live in one state and work in another and if they both have a reciprocity agreement, then you will only pay income tax for the state you live in.
Taking advantage of these agreements can help you save a lot of money. One good example is North Dakota and Minnesota. The income tax rate in Minnesota tops out at 9.85% and North Dakota's max rate is only at 2.5%. You could live in North Dakota and work in Minnesota and only have to pay the 2.5% that North Dakota charges.
Taxation is theft.
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