North Dakota variant. This is a North Dakota-specific version of the Income Tax Calculator, 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 Income Tax Calculator.
North Dakota income tax (1.95-2.5% across 3 brackets (lowest top rate)) stacks on top of federal tax. Understanding both layers is essential to estimating your total North Dakota tax bill.
North Dakota state income tax structure
North Dakota taxes income at 1.95-2.5% across 3 brackets (lowest top rate), with a top marginal rate of 2.5%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the North Dakota rate to find your true marginal tax on the next dollar earned.
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: state tax on $73,959
Using the 2.5% top rate as a ceiling, state income tax on $73,959 is at most about $1,849; the actual figure is lower after brackets and deductions.
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 have state income tax?
Yes - 1.95-2.5% across 3 brackets (lowest top rate), topping out at 2.5%.
What is the top tax rate in North Dakota?
The top marginal state rate is 2.5%.