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North Dakota Income Tax Calculator

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Overview of North Dakota Taxes

North Dakota has a progressive income tax that is among the lowest in the country. In fact, the top marginal rate is the lowest of any state that has an income tax. The state sales tax ranks in the bottom half of the country and the average effective property tax rate is close to nationwide marks.

Enter your financial details to calculate your taxes
Household Income
Filing Status
401(k) Contribution
IRA Contribution
Itemized Deductions
Number of State Personal Exemptions

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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Tax Rate
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2023 - 2024 filing season.

Your 2023 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2023 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes. more
  • Last Updated: January 1, 2024

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email more
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Taxes in North Dakota

North Dakota State Tax Quick Facts

  • Income tax: 0% - 2.5%
  • Sales tax: 5% - 9.2%
  • Property tax: 1.00% average effective rate
  • Gas tax: 23.00 cents per gallon of regular gasoline and diesel

The booming economy in North Dakota in recent years has allowed the state to significantly cut taxes. The current income tax rates are the lowest in the country, ranging from 0% to 2.5%. The state’s sales taxes stand below the national average. When accounting for local rates, the average sales tax in the Roughrider State is 5.981%.

The average effective property tax rate is 1.00%. That’s below the national average of 1.02%. Of course, the financial impact of that tax and others in North Dakota depends on individual taxpayer circumstances.

A financial advisor can help you understand how taxes fit into your overall financial goals. Finding a financial advisor doesn't have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Not a North Dakota taxpayer yet, but planning a move to the Peace Garden State? If you’re planning on using a mortgage to purchase a home, take a look at our comprehensive North Dakota mortgage guide to learn more about rates and the details of getting a mortgage in the state.

North Dakota Income Taxes

After several rounds of tax cuts in recent years, North Dakota has some of the lowest state income tax rates in the country. The top marginal rate now sits at 2.5%. Not everyone pays that rate, however. Lower earners pay lower rates, depending on their income tax bracket. The table below shows brackets for all filing statuses in North Dakota.

Income Tax Brackets

Single Filers
North Dakota Taxable IncomeRate
$0 - $44,7250%
$44,725 - $225,9751.95%
Married, Filing Jointly
North Dakota Taxable IncomeRate
$0 - $74,7500%
$74,750- $275,1001.95%
Married, Filing Separately
North Dakota Taxable IncomeRate
$0 - $37,3750%
$37,375- $137,5501.95%
Head of Household
North Dakota Taxable IncomeRate
$0 - $59,9500%
$59,950 - $250,5501.95%

North Dakota taxable income is pretty similar to federal taxable income. A number of items that are taxed federally can be subtracted from taxable income in North Dakota. Interest from U.S. government obligations such as U.S. savings bonds is exempt, as is active duty pay from the National Guard or U.S. armed forces. You can also subtract contributions to a North Dakota College SAVE account, up to $5,000 for single filers and $10,000 for joint filers. In addition, some capital gains can be excluded.

Social Security benefits are subject to the state income tax in North Dakota. It is one of just a handful of states that tax Social Security benefits. Consider hiring a professional accountant or looking into tax preparation software to help file your returns.

North Dakota Capital Gains Tax

Capital gains are included as taxable income in North Dakota; however long-term gains may be eligible for the North Dakota net long-term gain exclusion. The exclusion is equal to 40% of your net long-term gains. To calculate the exclusion, take the smaller of net long-term gains and net long-term gains less net short-term losses (these can be found on IRS form 1040, Schedule D) and multiply it by 0.4.

North Dakota Sales Tax

Sales taxes are one of North Dakota’s most important sources of revenue. The statewide sales tax rate is 5%, but many counties and cities collect additional local option sales taxes, with rates as high as 4.2%. That means the highest rate possible in North Dakota is 9.2%. The table below shows state and local rates for every county in the state.

Sales Tax Rates(Updated January 2022)

CountyState RateTotal Sales Tax
Adams County5.000%4.2%
Barnes County5.000%7.5%
Benson County5.000%8.0%
Billings County5.000%7.5%
Bottineau County5.000%7.0%
Bowman County5.000%5.0%
Burke County5.000%7.0%
Burleigh County5.000%7.0%
Cass County5.000%8.0%
Cavalier County5.000%7.0%
Dickey County5.000%7.0%
Divide County5.000%8.0%
Dunn County5.000%7.0%
Eddy County5.000%7.5%
Emmons County5.000%7.0%
Foster County5.000%7.0%
Golden Valley County5.000%7.0%
Grand Forks County5.000%8.0%
Grant County5.000%7.0%
Griggs County5.000%7.0%
Hettinger County5.000%7.5%
Kidder County5.000%7.5%
LaMoure County5.000%8.0%
Logan County5.000%7.0%
McHenry County5.000%7.0%
McIntosh County5.000%7.0%
McKenzie County5.000%7.0%
McLean County5.000%7.5%
Mercer County5.000%7.0%
Morton County5.000%7.5%
Mountrail County5.000%7.0%
Nelson County5.000%7.0%
Oliver County5.000%7.0%
Pembina County5.000%7.5%
Pierce County5.000%7.0%
Ramsey County5.000%7.5%
Ransom County5.000%8.0%
Renville County5.000%7.0%
Richland County5.000%8.0%
Rolette County5.000%7.0%
Sargent County5.000%8.0%
Sheridan County5.000%7.0%
Sioux County5.000%7.5%
Slope County5.000%7.0%
Stark County5.000%7.5%
Steele County5.000%8.0%
Stutsman County5.000%7.5%
Towner County5.000%7.0%
Traill County5.000%7.5%
Walsh County5.000%7.75%
Ward County5.000%7.5%
Wells County5.000%7.0%
Williams County5.000%8.5%

The total tax rates above apply to “tangible personal property” sold in the state. This includes most consumer products and household goods. Some services are also taxed, including deliveries of taxable items, communications services and construction or assembly of a taxable item.

Motor vehicles are subject to a separate excise tax of 5%, and are not subject to the local tax rates shown above. Food that is purchased for consumption at home is exempt, but prepared food is not.

Other exemptions from the North Dakota sales tax include: prescription drugs, medical devices, electricity, bibles, textbooks, newspapers, water and diabetic equipment. On the other hand, some products, like gasoline and tobacco, face special excise taxes, as described in the following sections.

North Dakota Gas Tax

Want to drive from Fargo to Williston? It’s a beautiful drive, but you’ll want to keep in mind state and federal gas taxes you have to pay along the way. North Dakota’s gas tax is 23 cents per gallon. The same rate applies to diesel gas.

North Dakota Cigarette Tax

North Dakota smokers pay some of the lowest cigarette taxes in the U.S. The state excise tax on a pack of cigarettes is 44 cents per pack. In addition to that excise tax, the general sales tax still applies. Sales tax is applied to the total cost of the cigarettes, which includes the excise tax.

North Dakota Alcohol Tax

North Dakota collects an excise tax on alcoholic beverages, with rates varying depending on the type of alcohol being sold. Beer is taxed at a rate of 16 cents per gallon. The state’s wine tax is $0.50 per gallon. The tax on liquor is $2.50 per gallon.

North Dakota Estate Tax

While North Dakota does have an estate tax statute, North Dakotans are currently not required to pay estate taxes. This is because of changes to the federal law, on which the North Dakota estate tax is based. North Dakotan gross estates that are greater than the federal exemption of $12.92 million (for 2023) must file a North Dakota estate tax return, but (barring any changes to the federal law) no taxes will be due.

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  • North Dakota is the No. 1 producer of honey in the U.S.
  • Hall of Fame basketball coach Phil Jackson played high school basketball in Williston, North Dakota, leading the team to two state titles.