Minnesota Guide for Canadians

Quick Facts

State Income Tax	Progressive 5.35% to 9.85% (4 brackets)
Sales Tax	6.875% state + local (avg 8.12% combined)
Driver's License Grace Period	60 days for residents
Residency Requirement for Tax	183+ days or domicile in Minnesota
Vehicle Registration Deadline	60 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights
Estate Tax	Estates over $3 million (13%-16% rates)

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Minnesota mailing address

Week 3-4: Official Registration

• Apply for Minnesota driver's license (within 60 days)
• Pass written knowledge test and road skills test
• Register vehicle if brought from Canada (within 60 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Minnesota ties and connections
• Research healthcare options and insurance
• Note: 183+ days establishes Minnesota tax residency

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Valid Canadian passport with valid U.S. visa and I-94
• Birth certificate or citizenship documents
• Two proofs of Minnesota residential address
• Social Security Number documentation (if applicable)

Testing Requirements:

• Written knowledge test required for foreign license holders
• Road skills test required - Minnesota does not waive tests for Canadians
• Vision screening required
• Foreign license can be used temporarily for 60 days only

License Options:

• Standard Class D license (most common)
• REAL ID compliant license available
• Enhanced license available for U.S. citizens only
• Standard license valid for 4 years

Important Notes:

• 60-day limit to get Minnesota license after residency
• Foreign license surrendered upon Minnesota license issuance
• REAL ID required by May 7, 2025 for air travel
• Driver's License for All program allows documentation flexibility

Vehicle Registration

• Register within 60 days of establishing residency
• Annual registration renewal required
• Minnesota insurance required for registration
• Motor vehicle sales tax of 6.875% applies

Tax & Residency Considerations

Minnesota State Tax Structure

• **Progressive income tax** 5.35% to 9.85% (4 brackets)
• **High sales tax** 6.875% state + local (8.12% average)
• **Estate tax** on estates over $3 million (13%-16% rates)
• **Moderate property taxes** (varies by county)
• **Motor vehicle sales tax** 6.875%

Establishing Minnesota Tax Residency

Minnesota residency is based on domicile and statutory presence:

• Domiciled in Minnesota (intent to make permanent home)
• Statutory resident: 183+ days in tax year
• Maintaining permanent place of abode in Minnesota

Documentation to Establish Residency

• Minnesota driver's license and voter registration
• Bank accounts and utility bills in Minnesota
• Employment or business activities in Minnesota
• Professional licenses, club memberships
• Property ownership or long-term lease

High Tax Burden Warning

Minnesota has a relatively high overall tax burden with progressive income tax rates up to 9.85%, high sales tax rates, and estate taxes. Combined with federal taxes, high earners face significant tax obligations.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Minnesota has expanded Medicaid (Medical Assistance)
• MNsure marketplace for health insurance
• Travel insurance strongly recommended for visitors
• Excellent medical facilities in Twin Cities, Rochester (Mayo Clinic)

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• Minnesota allows some prescription importation programs
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Minnesota's 183-day rule for tax residency

Property Considerations

• Moderate property values in most areas
• Property taxes vary significantly by county
• Lake property and recreational opportunities
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Continental climate with cold winters, warm summers
• Excellent outdoor recreation - lakes, forests, trails
• High quality of life and strong social services
• Active Canadian and Scandinavian communities

Border Proximity

• Multiple border crossings to Ontario and Manitoba
• Enhanced Driver's License available for U.S. citizens only
• NEXUS/Global Entry beneficial for frequent crossings
• Relatively close to Winnipeg and Thunder Bay

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License available for U.S. citizens only
• I-94 registration now required for 30+ day stays

Minnesota Nice Advantage

Minnesota offers exceptional quality of life with excellent healthcare (Mayo Clinic), strong education, beautiful lakes and forests, and welcoming communities. Higher taxes support quality public services and infrastructure.

Key Contacts & Resources