North Dakota Income Tax Calculator

How to Use This North Dakota Income Tax Calculator

This North Dakota income tax calculator estimates your annual ND state and federal tax liability for 2025 and 2026. Enter your gross wages, filing status, and any pre-tax deductions above. North Dakota applies three brackets — 0%, 1.95%, and 2.5% — to taxable income, resulting in one of the lowest effective state income tax burdens in the country.

For per-paycheck withholding estimates and take-home pay, use the North Dakota paycheck calculator. To compare North Dakota's tax burden against neighboring states, use the general income tax calculator.

North Dakota Income Tax Brackets — One of the Lowest in the Nation

North Dakota has been aggressively cutting its income tax rates over the past decade, driven primarily by oil and gas revenue that reduces reliance on income taxes. The 2026 bracket structure features a wide 0% bracket that shields most middle-income earners from meaningful state income tax:

• 0% on the first $48,475 of taxable income (single); $80,975 (MFJ)
• 1.95% on taxable income from $48,475 to $244,825 (single)
• 2.5% on taxable income above $244,825 (single)

For a single filer earning $75,000, after the $16,100 federal standard deduction, taxable income is approximately $58,900. Only $10,425 falls in the 1.95% bracket, producing a North Dakota state tax of approximately $203 — an effective ND state rate of just 0.3% of gross income.

North Dakota's Path to Income Tax Elimination

North Dakota's rate reductions reflect a deliberate legislative goal of eliminating the state income tax entirely:

• Bakken oil revenue:North Dakota's oil production in the Bakken shale formation generates severance tax revenue that partially funds state government, reducing the need for income tax revenue.
• Rate trajectory: The top rate has fallen from over 4% to 2.5% in recent years, with legislators proposing further cuts toward zero contingent on state surplus conditions.
• Context for workers: A taxpayer with $100,000 of taxable income owes roughly $1,000 in North Dakota income tax in 2026 — compared to $7,000+ in Minnesota, $4,000+ in Montana, or $3,600 in Iowa at the same income level.
• Primary residence credit: North Dakota offers a credit for property taxes paid on a primary residence, which can further offset state income tax liability for homeowners.

FICA Taxes — Social Security and Medicare

FICA is federal and applies to every North Dakota earner regardless of state:

• Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you hit the wage base.
• Medicare: 1.45% on all wages with no cap.
• Additional Medicare: 0.9% on wages above $200,000 (single) or $250,000 (married jointly) — employee only, no employer match.

Step-by-Step Example — $100,000 North Dakota Single Filer (2026)

1. Gross wages: $100,000
2. Federal standard deduction: −$16,100 → federal taxable income: $83,900
3. Federal income tax (10%–22% brackets): ≈ $13,170
4. FICA: $100,000 × 7.65% = $7,650
5. North Dakota taxable income ≈ $83,900 (ND conforms to federal AGI as a starting point)
6. North Dakota income tax: 0% × $48,475 ($0) + 1.95% × $35,425 ≈ $690
7. Total taxes: $13,170 + $7,650 + $690 = $21,510
8. Annual net income: $100,000 − $21,510 = $78,490

The same earner in neighboring Minnesota would owe approximately $6,000–$7,000 in state income tax, reducing annual net income to roughly $73,000–$74,000. Use the general income tax calculator to compare across states.

Retirement Income and North Dakota Taxes

North Dakota is one of the most retirement-friendly states in the country for income tax purposes, combining a very low top rate with generous exemptions for key retirement income streams.

Social Security Benefits — Fully Exempt

North Dakota does not tax Social Security benefitsat the state level. Every dollar of Social Security retirement, disability, or survivor income is excluded from North Dakota taxable income, regardless of the retiree's total income. This contrasts with states like Vermont and Minnesota that tax Social Security above certain thresholds — ND provides a complete, unconditional exemption.

Military Retirement — Fully Exempt

Military retirement pay is fully exemptfrom North Dakota income tax. Retired service members pay zero North Dakota income tax on their military pension, in addition to the Social Security exemption. Combined with ND's already-low rates on other income, North Dakota is one of the most financially favorable states for military retirees.

Pension and IRA Distributions

Private pensions, traditional 401(k) distributions, and IRA withdrawals are taxable in North Dakota as ordinary income. However, because North Dakota's rates are so low — a maximum of 2.5% — the state tax on retirement distributions is minimal. A retiree withdrawing $50,000 per year from a 401(k) (after Social Security exclusion) might owe $100–$400 in North Dakota state income tax depending on their total taxable income.

Primary Residence Credit

North Dakota offers a homestead credit for primary residence property taxes, which can offset state income tax liability. Qualifying homeowners (primarily seniors and disabled residents) may claim a credit against their North Dakota income tax based on property taxes paid. This further reduces the already-low effective tax rate for qualifying retirees.

North Dakota Tax Credits and Deductions

North Dakota Earned Income Tax Credit (ND EITC)

North Dakota has its own state EITC equal to 5% of the federal Earned Income Tax Credit. For a family of three eligible for the maximum federal EITC (approximately $7,830 in 2026), the North Dakota credit adds roughly $392. The ND EITC is non-refundable — it can reduce North Dakota tax to zero but does not generate a refund if the credit exceeds your liability. Given ND's already-low rates, many qualifying filers will see their ND tax liability fully offset by this credit.

Primary Residence Property Tax Credit

North Dakota provides a credit for property taxes paid on a primary residence for qualifying taxpayers. This credit reduces North Dakota income tax liability, providing a dual benefit for homeowners: reduced property taxes and reduced income tax. Eligibility is income-tested; verify current limits with the North Dakota Office of State Tax Commissioner.

North Dakota Form ND-1 and Filing Deadline

North Dakota residents file Form ND-1 (Individual Income Tax Return) for their annual state income tax return. The filing deadline is April 15, the same as the federal deadline. An automatic extension of time to file (to October 15) is available by filing a federal extension — North Dakota honors the federal extension without a separate state form. Any North Dakota income tax owed must still be paid by April 15 to avoid interest and penalties.

How to Reduce Your North Dakota Annual Tax Liability

• Maximize traditional 401(k) contributions— the 2026 limit is $23,500 ($31,000 if age 50+). At ND's modest 1.95% bracket, a $20,000 contribution saves roughly $4,400 in federal tax plus approximately $390 in ND state tax — a combined $4,790 in annual tax savings.
• Contribute to an HSA — $4,300 (self-only) or $8,550 (family) in 2026. Reduces both federal and ND state taxable income when contributions are made through payroll.
• Claim the ND EITC— if you qualify for the federal EITC, claim the 5% North Dakota match on Form ND-1. Given ND's low rates, this credit often reduces ND tax to zero for qualifying families.
• Use a Dependent Care FSA — up to $5,000 per household in pre-tax dollars for qualifying childcare costs, reducing both federal and ND state taxable wages.
• Verify your NDW-R withholding— at North Dakota's very low rates, employer withholding is minimal. Ensure your employer is using the correct 2026 ND withholding tables so you neither owe a surprise at filing nor over-withhold throughout the year.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. North Dakota income tax brackets, exemption thresholds, and rates are subject to change as the state continues its income tax phase-down. Federal brackets, FICA wage bases, and standard deduction amounts also change annually. Results reflect 2025 and 2026 tax-year parameters. Consult a qualified tax professional or CPA for guidance on your specific situation.