North Dakota vs Federal Tax Comparison
| Tax Type | ND State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | 1.1–2.5% | Federal: 10–37% | Combined fed+state applies |
| Corporate Income Tax | 4.31% | Federal: 21% | 1.41–4.31% graduated |
| State Sales Tax | 5% | No federal sales tax | Combined avg: 6.87% |
| Capital Gains Tax | 2.5% | Federal: 0–20% | Same as income tax |
About North Dakota Taxes
One of the lowest income tax burdens; energy sector boosts economy.
North Dakota levies income tax at rates from 1.1–2.5%. The progressive bracket system means higher earners pay a larger percentage on income above each threshold.
Corporate activity in North Dakota faces a 4.31% state corporate tax rate. 1.41–4.31% graduated. Combined with the 21% federal corporate rate, businesses should plan accordingly.
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Open US Salary CalculatorFrequently Asked Questions — North Dakota Taxes
What are North Dakota's income tax brackets for 2026?
North Dakota has a progressive income tax ranging from 1.1–2.5%. The top rate of 2.5% applies to the highest income bracket. Filers should check the current threshold amounts on the North Dakota Department of Revenue website.
What is the corporate income tax rate in North Dakota?
North Dakota imposes a corporate income tax at 4.31%. 1.41–4.31% graduated. Businesses should also account for federal corporate tax at 21% on top of the state rate.
What is the sales tax rate in North Dakota?
North Dakota has a state sales tax of 5%. When local city and county taxes are included, the average combined rate reaches 6.87%. Rates vary by locality so check the specific municipality for accurate figures.
How does North Dakota compare to neighboring states for taxes?
North Dakota's overall tax burden ranks favorably among US states. The state levies income tax at up to 2.5%. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in North Dakota.
Are there any special tax incentives or exemptions in North Dakota?
North Dakota offers notable tax characteristics: One of the lowest income tax burdens; energy sector boosts economy. Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to North Dakota.
Cost of Living in North Dakota
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