Residency is determined primarily by where an individual resides. For tax purposes, Minnesota residency is generally determined by two rules:Taxpayers who live in more than one state, such as those who spend the winter in warm weather states, may still be considered Minnesota residents based on these two rules. Taxpayers who move into or out of Minnesota would be considered part-year residents and some of their income would be taxable by Minnesota. Some taxpayers may be nonresidents of Minnesota but some income may still be taxable by Minnesota. See Part-year resident and nonresident information to make this determination.Domicile for individual income taxDomicile refers to the taxpayer’s permanent, legal address; the place they intend to make their home for an indefinite period of time.For most Minnesota taxpayers, residency determination is simple: they live, vote, work, attend school and occupy a home or apartment in Minnesota.For others who may split their time between two or more states, the determination may be more difficult. Taxpayers should review the Residency Fact Sheet to make a determination about their particular circumstances.Minnesota Rules 8001.0300, Subparts 2 and 3 include definitions, presumptions, and considerations for determining if a person is domiciled in Minnesota. Subparts 4 through 8 include comprehensive definitions of abode, days within Minnesota and other related items.Criteria used to determine domicileThe following is a summary of the criteria used to determine residency:Property ownership and residence: - homestead status
- the location of home
- mailing address
- amount of time spent in Minnesota
Financial data: - location of bank accounts
- where taxpayer qualifies for unemployment benefits
- state where prior resident tax returns were filed
- state where wages are earned
Licenses and registrations: - where taxpayer is registered to vote
- state which issues driver’s license
- state where vehicles are registered
- state where professional licenses are maintained
Affiliations: - location of fraternal, social or athletic memberships
- union membership location
- place of worship
Higher education: - where taxpayer qualifies for in-state tuition
Family and dependents: - whether taxpayer is claimed as a dependent on another person’s federal income tax return and that person’s state of residence
- where taxpayer’s spouse and dependents reside
Single factor not sufficientNo single factor determines taxpayer’s state of residence; all factors must be evaluated together. Some factors, such as where taxpayers make their charitable contributions, play no part in residency determination. A taxpayer’s permanent residence, once established, continues as the state of residence until the person takes steps to establish a new residence in another state. MN Rule 8001.0300 subp 2Spousal presumptionOne spouse is presumed to have the same state of residence as the other spouse, unless there is adequate evidence to the contrary, or if they are legally separated or the marriage has been dissolved. Members of the military are not covered by this presumption. MN Rule 8001.0300 subp 2.Example: A couple domiciled in Minnesota decides to move to Texas after one spouse is offered a new job there. The one with the new job moves immediately to set up residency in Texas, leaving his or her spouse behind to sell the house, or to see the children through the remainder of the school year. Normally, spouses are presumed to have the same state of residence; however, in this case, the facts are sufficient to show that the two spouses have separate states of residence until the Minnesota spouse physically moves to Texas. Back to top183-day ruleTaxpayers who are residents of another state may still be considered Minnesota residents for income tax purposes if they meet the following two conditions:- they spend at least 183 days in Minnesota (any portion of a day is counted as a full day), and
- they (or their spouse) own, rent, or occupy an abode (a living unit suitable for year-round use, that is equipped with its own cooking and bathing facilities) in Minnesota.
If both conditions apply, the taxpayer is considered a Minnesota resident for as many days as the second condition applies. If the second condition applied for the entire year, the taxpayer is considered a Minnesota resident for the full year.Taxpayers who permanently live in another state, but spend more than 183 days in Minnesota and rent, own, or occupy an abode in Minnesota for less than the full year are also part-year residents.The 183-day rule does not apply to members of the military stationed in Minnesota or to residents of reciprocity states. See Members of the Armed Forces for further information.Example:Linc is temporarily assigned to work in Minnesota by his employer in California. Linc rents an apartment for eight months and spends the entire eight months in Minneapolis. Even though Linc has not permanently moved to Minnesota, he is considered a part-year resident because he was here more than 183 days and rented an abode during that time. He must file Form M1 and use Schedule M1NR to calculate his Minnesota income as a percentage of his total income. Had Linc rented the apartment for the entire year, he would have been considered a resident for the entire year and paid tax on all income regardless of where it was derived.
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