North Dakota variant. This is a North Dakota-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In North Dakota, that means a top rate of 2.5% on gains.
Capital gains tax in North Dakota
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. North Dakota then taxes the same gains as ordinary income at up to 2.5%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in North Dakota
North Dakota has one of the lowest top income tax rates in the country, with a top marginal rate around 2.5%.
North Dakota's effective property tax rate is near 0.98%, with median home values around $250,000.
North Dakota's economy is strongly tied to oil and gas production in the Bakken formation along with large-scale agriculture.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus North Dakota state tax up to 2.5% = $1,250, for a combined bill near $8,750.
Quick reference
- State income tax: 1.95-2.5% across 3 brackets (lowest top rate)
- State sales tax: 5% (plus 1.97% avg local)
- Median home value: $250,000
- Median household income: $73,959
- Effective property tax rate: 0.98%
- Avg auto insurance: $1,240/yr
Frequently Asked Questions
Does North Dakota tax capital gains?
Yes - North Dakota taxes capital gains as ordinary income at up to 2.5%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.