What is the North Dakota income tax rate?

North Dakota taxes all taxable income at a flat rate of 1.95%. This applies equally to all income levels regardless of how much you earn.

How is North Dakota income tax calculated?

Multiply your taxable income by 1.95%. For example, a taxpayer with $75,000 in taxable income would owe $1,463 in North Dakota income tax.

Does North Dakota have a standard deduction?

North Dakota generally does not have a state-level standard deduction, though some exemptions or credits may apply. Your taxable income is your gross income minus pre-tax deductions like 401(k) contributions.

How can I reduce my North Dakota income taxes?

Common strategies include maximizing pre-tax retirement contributions (401k, IRA), contributing to an HSA, and taking advantage of any available state tax credits.

How does North Dakota's 1.95% flat tax compare to neighboring states?

North Dakota's flat rate of 1.95% can be compared to neighboring states using the chart on this page. States with no income tax offer the lowest burden, while progressive states may be higher or lower depending on your income level.

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North Dakota Income Tax Calculator

Calculate your 2026 North Dakota state income tax. See your bracket breakdown, effective rate, and how North Dakota compares to neighboring states.

1.95% Flat Tax

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State Income Tax

North Dakota · 2026

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vs National Average Effective Rate (4.2%)

Effective Rate vs Neighboring States

North Dakota Tax Brackets (2026)

Federal vs North Dakota Tax Comparison

Estimate for your income and filing status. Federal uses 2026 brackets and standard deduction.

Item	Federal	North Dakota	Total

About North Dakota state taxes (Tax year 2026)

North Dakota has a near-flat income tax with a rate of 1.95% on income over $44,725. Income below that threshold is tax-free. This is effectively one of the lowest income tax burdens in the nation.

Groceries are exempt from sales tax. Prescription drugs are exempt.

North Dakota's effective income tax rate is among the lowest in the nation, with most moderate-income earners paying well under 1% effective rate.

Filing in North Dakota: returns for tax year 2026 are administered by the North Dakota Office of State Tax Commissioner and are generally filed in 2027 by the federal April deadline unless North Dakota declares a state-specific extension. Tax type on this return: Flat. Top marginal rate: 1.95%. State sales-tax rate: 5.0%. For the most current contact info, see the Federation of Tax Administrators directory.

North Dakota — What is North Dakota's income tax rate? North Dakota charges 1.95% on taxable income above $44,725. Income below that amount is not taxed, making it one of the lightest income tax burdens in the country.

North Dakota — Does North Dakota tax groceries? No, groceries (unprepared food) are exempt from North Dakota's 5% state sales tax.

North Dakota — Why are North Dakota's taxes so low? North Dakota benefits from significant oil and gas revenue, which helps fund state services and keeps individual tax rates very low.

Reviewed methodology

How this page is reviewed

Risk tier	High YMYL
Author	Calculover Editorial Team Tax education
Editorial owner	Calculover Tax & Payroll Desk State-tax methodology owner
Reviewer	Calculover Editorial Review Government-source and limitation review
Last reviewed	2026-05-14
Last verified	2026-05-14
Data effective date	2026-01-01
Jurisdiction	North Dakota

Methodology

State-tax per-state pages apply the published 2026 bracket schedule, standard deduction, and filing-status rules for the listed jurisdiction. Federal AGI inputs are mapped to state taxable income before bracket math runs. Local taxes (NYC, Philadelphia, certain Ohio cities) are flagged but not embedded in the base estimate.

Assumptions

The user enters federal AGI, filing status, and state-specific adjustments as provided.
Brackets, standard deductions, and credits reflect the 2026 statutory values published by the state Department of Revenue and the Tax Foundation.
Local income taxes and reciprocity-agreement situations are noted but not auto-applied.

Limitations

These pages do not predict mid-year legislative changes, rate adjustments, or new local tax assessments.
Multi-state filers, convenience-of-employer rules, and special-circumstance credits require additional tax-professional analysis.

Sources

State Tax Rates, Federation of Tax Administrators
State Individual Income Tax Rates and Brackets, Tax Foundation
State Government Resources, Internal Revenue Service

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.