For nonresidents, Minnesota calculates your state tax using your full-year income as if you'd earned it all in Minnesota - so it will include your pensions and any other income you made during the year. Then, you'll calculate an income allocation percentage to prorate the tax liability. The income allocation is calculated as Minnesota income divided by your overall income. This rate is applied to your tentative Minnesota tax to find your prorated Minnesota tax.
So, although you will see all of your income included in your Minnesota taxable income, your actual tax is based only on your Minnesota income.
