diff --git a/packages/nx/migrations.json b/packages/nx/migrations.json
index 49cb44c679ead..1ea3b538560e5 100644
--- a/packages/nx/migrations.json
+++ b/packages/nx/migrations.json
@@ -65,6 +65,12 @@
       "version": "17.0.0-beta.1",
       "description": "Updates the default cache directory to .nx/cache",
       "implementation": "./src/migrations/update-17-0-0/move-cache-directory"
+    },
+    "17.0.0-use-minimal-config-for-tasks-runner-options": {
+      "cli": "nx",
+      "version": "17.0.0-beta.2",
+      "description": "Use minimal config for tasksRunnerOptions",
+      "implementation": "./src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options"
     }
   }
 }
diff --git a/packages/nx/src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options.spec.ts b/packages/nx/src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options.spec.ts
new file mode 100644
index 0000000000000..c6e8555f1a187
--- /dev/null
+++ b/packages/nx/src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options.spec.ts
@@ -0,0 +1,183 @@
+import { NxJsonConfiguration } from '../../config/nx-json';
+import { createTreeWithEmptyWorkspace } from '../../generators/testing-utils/create-tree-with-empty-workspace';
+import { readJson, writeJson } from '../../generators/utils/json';
+import { Tree } from '../../generators/tree';
+import migrate from './use-minimal-config-for-tasks-runner-options';
+
+describe('use-minimal-config-for-tasks-runner-options migration', () => {
+  let tree: Tree;
+
+  beforeEach(() => {
+    tree = createTreeWithEmptyWorkspace();
+  });
+
+  it('should update nx.json with minimal config', async () => {
+    writeJson<NxJsonConfiguration>(tree, 'nx.json', {
+      tasksRunnerOptions: {
+        default: {
+          runner: 'nx/tasks-runners/default',
+          options: {
+            cacheableOperations: ['build', 'test'],
+          },
+        },
+      },
+    });
+
+    await migrate(tree);
+
+    const nxJson = readJson<NxJsonConfiguration>(tree, 'nx.json');
+    expect(nxJson.tasksRunnerOptions).toEqual(undefined);
+    expect(nxJson.targetDefaults).toMatchInlineSnapshot(`
+      {
+        "build": {
+          "cache": true,
+        },
+        "test": {
+          "cache": true,
+        },
+      }
+    `);
+  });
+
+  it('should not update nx.json if there are multiple tasks runners', async () => {
+    writeJson<NxJsonConfiguration>(tree, 'nx.json', {
+      tasksRunnerOptions: {
+        default: {
+          runner: 'nx/tasks-runners/default',
+          options: {},
+        },
+        custom: {
+          runner: 'custom',
+          options: {},
+        },
+      },
+    });
+
+    await migrate(tree);
+
+    const nxJson = readJson<NxJsonConfiguration>(tree, 'nx.json');
+    expect(nxJson.tasksRunnerOptions).toEqual({
+      default: {
+        runner: 'nx/tasks-runners/default',
+        options: {},
+      },
+      custom: {
+        runner: 'custom',
+        options: {},
+      },
+    });
+  });
+
+  it('should move nxCloudAccessToken and nxCloudUrl for nx-cloud', async () => {
+    writeJson<NxJsonConfiguration>(tree, 'nx.json', {
+      tasksRunnerOptions: {
+        default: {
+          runner: 'nx-cloud',
+          options: {
+            accessToken: 'abc123',
+            url: 'https://nx.app',
+            encryptionKey: 'secret',
+          },
+        },
+      },
+    });
+
+    await migrate(tree);
+
+    const nxJson = readJson<NxJsonConfiguration>(tree, 'nx.json');
+    expect(nxJson.nxCloudAccessToken).toEqual('abc123');
+    expect(nxJson.nxCloudUrl).toEqual('https://nx.app');
+    expect(nxJson.nxCloudEncryptionKey).toEqual('secret');
+    expect(nxJson.tasksRunnerOptions).not.toBeDefined();
+  });
+
+  it('should move nxCloudAccessToken and nxCloudUrl for @nrwl/nx-cloud', async () => {
+    writeJson<NxJsonConfiguration>(tree, 'nx.json', {
+      tasksRunnerOptions: {
+        default: {
+          runner: '@nrwl/nx-cloud',
+          options: {
+            accessToken: 'abc123',
+            url: 'https://nx.app',
+            maskedProperties: 'secret',
+          },
+        },
+      },
+    });
+
+    await migrate(tree);
+
+    const nxJson = readJson<NxJsonConfiguration>(tree, 'nx.json');
+    expect(nxJson.nxCloudAccessToken).toEqual('abc123');
+    expect(nxJson.nxCloudUrl).toEqual('https://nx.app');
+    expect(nxJson.tasksRunnerOptions.default.options).toMatchInlineSnapshot(`
+      {
+        "maskedProperties": "secret",
+      }
+    `);
+    expect(nxJson.tasksRunnerOptions.default.runner).not.toBeDefined();
+  });
+
+  it('should not update accessToken if runner is not nx-cloud', async () => {
+    writeJson<NxJsonConfiguration>(tree, 'nx.json', {
+      tasksRunnerOptions: {
+        default: {
+          runner: 'custom',
+          options: {
+            cacheDirectory: '.nx/cache',
+            useDaemonProcess: false,
+            accessToken: 'xxxx-xxx-xxxx',
+          },
+        },
+      },
+    });
+    await migrate(tree);
+    expect(readJson<NxJsonConfiguration>(tree, 'nx.json'))
+      .toMatchInlineSnapshot(`
+      {
+        "cacheDirectory": ".nx/cache",
+        "tasksRunnerOptions": {
+          "default": {
+            "options": {
+              "accessToken": "xxxx-xxx-xxxx",
+            },
+            "runner": "custom",
+          },
+        },
+        "useDaemonProcess": false,
+      }
+    `);
+  });
+
+  it('should work if nx.json does not exist', async () => {
+    tree.delete('nx.json');
+    await migrate(tree);
+    expect(tree.exists('nx.json')).toEqual(false);
+  });
+
+  it('should not throw is cacheableOperations is an unexpected type', async () => {
+    writeJson<NxJsonConfiguration>(tree, 'nx.json', {
+      tasksRunnerOptions: {
+        default: {
+          runner: 'nx/tasks-runners/default',
+          options: {
+            cacheableOperations: 'invalid',
+          },
+        },
+      },
+    });
+
+    await migrate(tree);
+
+    const nxJson = readJson<NxJsonConfiguration>(tree, 'nx.json');
+    expect(nxJson.tasksRunnerOptions).toMatchInlineSnapshot(`
+      {
+        "default": {
+          "options": {
+            "cacheableOperations": "invalid",
+          },
+        },
+      }
+    `);
+  });
+});
diff --git a/packages/nx/src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options.ts b/packages/nx/src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options.ts
new file mode 100644
index 0000000000000..421c7c796faa8
--- /dev/null
+++ b/packages/nx/src/migrations/update-17-0-0/use-minimal-config-for-tasks-runner-options.ts
@@ -0,0 +1,72 @@
+import { updateJson } from '../../generators/utils/json';
+import { Tree } from '../../generators/tree';
+import { NxJsonConfiguration } from '../../config/nx-json';
+
+export default async function migrate(tree: Tree) {
+  if (!tree.exists('nx.json')) {
+    return;
+  }
+  updateJson<NxJsonConfiguration>(tree, 'nx.json', (nxJson) => {
+    // Already migrated
+    if (!nxJson.tasksRunnerOptions?.default) {
+      return nxJson;
+    }
+
+    const { runner, options } = nxJson.tasksRunnerOptions.default;
+
+    // This property shouldn't ever be part of tasks runner options.
+    if (options.useDaemonProcess !== undefined) {
+      nxJson.useDaemonProcess = options.useDaemonProcess;
+      delete options.useDaemonProcess;
+    }
+
+    // Remaining keys may be specific to a given runner, so leave them alone if there are multiple runners.
+    if (Object.keys(nxJson.tasksRunnerOptions ?? {}).length > 1) {
+      return nxJson;
+    }
+
+    // These options can only be moved for nx-cloud.
+    if (runner === 'nx-cloud' || runner === '@nrwl/nx-cloud') {
+      nxJson.nxCloudAccessToken = options.accessToken;
+      delete options.accessToken;
+
+      if (options.url) {
+        nxJson.nxCloudUrl = options.url;
+        delete options.url;
+      }
+      if (options.encryptionKey) {
+        nxJson.nxCloudEncryptionKey = options.encryptionKey;
+        delete options.encryptionKey;
+      }
+    }
+
+    // These options should be safe to move for all tasks runners:
+    if (options.parallel !== undefined) {
+      nxJson.parallel = options.parallel;
+      delete options.parallel;
+    }
+    if (options.cacheDirectory !== undefined) {
+      nxJson.cacheDirectory = options.cacheDirectory;
+      delete options.cacheDirectory;
+    }
+    if (Array.isArray(options.cacheableOperations)) {
+      nxJson.targetDefaults ??= {};
+      for (const target of options.cacheableOperations) {
+        nxJson.targetDefaults[target] ??= {};
+        nxJson.targetDefaults[target].cache ??= true;
+      }
+      delete options.cacheableOperations;
+    }
+    if (
+      ['nx-cloud', '@nrwl/nx-cloud', 'nx/tasks-runners/default'].includes(
+        runner
+      )
+    ) {
+      delete nxJson.tasksRunnerOptions.default.runner;
+      if (Object.values(options).length === 0) {
+        delete nxJson.tasksRunnerOptions;
+      }
+    }
+    return nxJson;
+  });
+}