Overview of North Dakota Taxes
The average effective property tax rate across North Dakota is 1.34%. That is 17th highest rate in the U.S. and the highest rate of any state in the upper Midwest.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
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Jennifer Mansfield Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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North Dakota Property Taxes
In North Dakota, taxes on real estate help pay for local services including schools, parks and roads. They are a primary source of revenue for both city and county governments. Property tax rates in North Dakota vary depending on where you live, but the average effective rate across the state is 1.34%. That is 17th highest rate in the U.S. and the highest rate of any state in the upper Midwest.
Below, we will take a closer look at rates in North Dakota’s counties, and review some the property tax rules every North Dakota homeowner should know. If you’re thinking about becoming a homeowner in the Peace Garden State, take a look at our North Dakota mortgage guide. It explains the important information you’ll want to be familiar with before starting the process of getting a mortgage. Also check it out if you are looking to refinance a property in North Dakota.
What to Know About North Dakota Property Taxes
Property taxes in North Dakota are due on January 1 of each year, but are not considered late until March 1. Taxes paid by February 15 receive a 5% discount on the total amount.
The property tax in North Dakota is an “ad valorem” tax, which means it is based on the value of the property to which it applies. Local assessors determine the true and fair value of property in their jurisdictions annually, generally through use of a mass appraisal, which relies on sales data and other factors.
The assessed value of all real property in North Dakota is equal to 50% of the market value. The taxable value is just a fraction of that – 9% for residential property. That means that for residential property, taxes are based on just 4.5% of the market value. So, for example, if your home is worth $200,000, your taxable value would be $9,000. Your total tax rate applies to that amount.
North Dakota Property Tax Rates
Homeowners in North Dakota face a single tax rate, which is the total of the rates levied by all the tax authorities in their area. This rate is expressed in mills, which is equal to 1/10th of a percent, or $1 of tax per $1,000 in taxable value.
Another way of calculating tax rates is as effective rates. An effective rate is the percentage of a home’s value paid annually in taxes, so if your home is worth $100,000 and you pay $2,000 annually in taxes, your effective rate is 2%.
The table below shows the average effective tax rate for every North Dakota County, as well as the median home value and median annual property tax paid.
|County||Median Home Value||Median Annual Property Tax Payment||Average Effective Property Tax Rate|
Located in eastern North Dakota along the state border with Minnesota, Cass County has the highest average property tax rate in the state. Cass County’s average effective property tax rate is 1.74%. In the city of Fargo, the current mill levy is 286.62 for homes within the Fargo School District. That rate applies to a home’s taxable value, which is equal to 4.5% of market value.
Burleigh County is situated along the Missouri River, in central North Dakota. It has property tax rates near the state average. The largest city in Burleigh County is Bismarck, the state capital. For tax year 2014, the total property tax rate for Bismarck homeowners was 253.63 mills. Of that, about 103.60 mills was dedicated to local school districts.
Grand Forks County
The third largest county by population in North Dakota, Grand Forks County also has among the highest property taxes. The median annual property tax paid by homeowners in Grand Forks County is $2,545, the second highest in the state. That is over $400 more than the U.S. median, and nearly $800 more than the state median.
The average effective property tax rate of 1.21% in Ward County ranks as the 25th highest in the state. At that rate, the annual taxes on a home with a market value of $150,000 would be $1,815. The county’s largest city is Minot, where the 2014 mill rate was 268.62 mills. (A mill is equal to $1 of tax for every $1,000 in taxable value.)
Located across the Missouri River from Burleigh County, Morton County has property tax rates somewhat higher the state average. The county’s average effective property tax rate is 1.49%, which ranks as the sixth highest in the state. That is also notably higher than the rate in neighboring Burleigh County, where a typical homeowner pays 1.38% of home value in property taxes each year.
Stark County is located in western North Dakota, at the edge of Theodore Roosevelt National Park. The median annual property tax payment in the county is $1,895, which ranks as the fifth highest median in the state. The county’s average mill rate in 2013 was 225.15 mills. That is an average across all tax districts and will vary depending on where you live.
Compared to North Dakota’s other most populous counties, Williams County has relatively low property tax rates. The county’s average effective property tax rate is 1.00%, which ranks as the 20th lowest in the state. A homeowner whose home is worth $150,000 would pay $1,500 per year in property taxes at that rate.
This central North Dakota county has property tax rates above both state and national averages. The county’s average effective property tax rate (median annual property tax as a percentage of median home value) is 1.55%, the fourth highest rate in the state.
Property Tax: Which Counties are Getting the Best Bang for Their Buck
SmartAsset’s interactive map highlights the places across the country where property tax dollars are being spent most effectively. Zoom between states and the national map to see the counties getting the biggest bang for their property tax buck.
Our study aims to find the places in the United States where people are getting the most for their property tax dollars. To do this we looked at school rankings, crime rates and property taxes for every county.
As a way to measure the quality of schools, we calculated the average math and reading/language arts proficiencies for all the school districts in the country. Within each state, these schools were then ranked between 1 and 10 (with 10 being the best) based on those average scores.
For each county, we calculated the violent and property crimes per 100,000 residents.
Using the school and crime numbers, we calculated a community score. This is the ratio of the school rank to the combined crime rate per 100,000 residents.
We used the number of households, median home value and average property tax rate to calculate a per capita property tax collected for each county.
Finally, we calculated a tax value by creating a ratio of the community score to the per capita property tax paid. This shows us the counties in the country where people are getting the most bang for their buck, or where their property tax dollars are going the furthest.
Sources: US Census Bureau 2016 American Community Survey, Department of Education, Federal Bureau of Investigation, State Police or Justice Department websites