Key Tax Facts: North Dakota
- Flat 2.5% rate - one of the lowest income tax rates in the U.S.
- Social Security may be partially exempt depending on income
- Military pay earned out of state is exempt
- No local income taxes beyond the state rate
North Dakota State Income Tax Overview
North Dakota has the second-lowest top income tax rate in the country among states that tax wages. Income up to $48,475 for single filers is untaxed entirely, then 1.95% applies up to $244,825, with a 2.5% top rate above that. A 2023 reform eliminated the bottom brackets outright, removing most lower-income filers from the income tax rolls. North Dakota uses the federal taxable income starting point, so the federal standard deduction of $15,000 for single filers and $30,000 for joint filers carries through. Social Security benefits are exempt for filers below income thresholds, and North Dakota has no state estate or inheritance tax.
North Dakota Income Tax Brackets (2025)
These are the North Dakota state income tax brackets for tax year 2025. North Dakota applies the same brackets to all filing statuses. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $48,475 | 0% |
| $48,475 - $244,825 | 1.95% |
| Over $244,825 | 2.5% |
Source: North Dakota Office of State Tax Commissioner. North Dakota applies these brackets to all filing statuses.
What a North Dakota Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
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Frequently Asked Questions -- North Dakota Income Tax
Does North Dakota have a state income tax?
Yes. North Dakota imposes a state income tax with a top marginal rate of 2.5%. This is separate from your federal income tax obligation.
What is the North Dakota income tax rate for 2025?
North Dakota uses a graduated income tax system with rates from 0% to 2.5%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a North Dakota state tax return?
Most full-year North Dakota residents with income above the state filing threshold must file a state return. Check the North Dakota Office of State Tax Commissioner for current thresholds and requirements.
How accurate is this estimate?
This is a planning estimate of your federal income tax only. It does not calculate North Dakota state tax, and it does not account for state deductions, credits, exemptions, or local taxes. Use the North Dakota rate schedule above as a reference, and verify with official North Dakota tax forms or a qualified tax professional.
Does this calculator include federal income tax?
Yes. The calculator estimates your 2025 federal income tax using the official IRS 2025 brackets. It does not compute your North Dakota state tax -- see the North Dakota rate schedule below to work that out.
Where can I find official North Dakota tax forms?
Official forms, instructions, and filing guidance are available at the North Dakota Office of State Tax Commissioner.
What is the sales tax rate in North Dakota?
North Dakota's combined state and average local sales tax rate is 6.96%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are North Dakota 2025 state taxes due?
2025 taxes are generally filed in 2026. The North Dakota filing deadline is April 15, 2026, the same as the federal deadline.
Understanding Your North Dakota Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and North Dakota state tax owed to the North Dakota Office of State Tax Commissioner. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your North Dakota Bill
Pre-tax retirement contributions reduce your federal and North Dakota taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, North Dakota-specific credits and deductions that don't exist at the federal level are listed at the North Dakota Office of State Tax Commissioner -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
North Dakota's combined state-plus-average-local sales tax rate is 6.96%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the North Dakota Office of State Tax Commissioner or a qualified tax professional for guidance specific to your situation.