North Dakota Tax Brackets Guide – North Dakota offers one of the lowest state income tax burdens in the U.S., with a simple three-bracket system (including a 0% rate on the first portion of income) that makes it attractive for residents and businesses. Whether you’re a first-time filer, retiree, or high earner moving to the state, understanding the North Dakota tax brackets for 2025 is essential for accurate planning and maximizing refunds.
This comprehensive guide covers the latest ND income tax brackets, how they work, filing statuses, standard deductions, comparisons to federal taxes, and overviews of sales and property taxes. All information is based on official sources from the North Dakota Office of State Tax Commissioner as of 2025 (returns filed in 2026). Brackets are inflation-adjusted annually, so always verify with the latest forms for future years.
North Dakota Income Tax Brackets for 2025
North Dakota uses a progressive tax system with just three brackets per filing status. The top marginal rate is only 2.50%, among the lowest in the nation. Most taxpayers fall into the 0% or 1.95% brackets.
Here are the exact 2025 North Dakota tax brackets:
Single Filers
- $0 – $48,475: 0.00%
- $48,475 – $244,825: 1.95% of the amount over $48,475
- $244,825 and above: $3,828.83 + 2.50% of the amount over $244,825
Married Filing Jointly or Qualifying Surviving Spouse
- $0 – $80,975: 0.00%
- $80,975 – $298,075: 1.95% of the amount over $80,975
- $298,075 and above: $4,233.45 + 2.50% of the amount over $298,075
Married Filing Separately
- $0 – $40,475: 0.00%
- $40,475 – $149,025: 1.95% of the amount over $40,475
- $149,025 and above: $2,116.73 + 2.50% of the amount over $149,025 (approximate base; use official schedule for precision)
Head of Household
- $0 – $64,950: 0.00%
- $64,950 – $271,450: 1.95% of the amount over $64,950
- $271,450 and above: $4,016.03 + 2.50% of the amount over $271,450 (approximate base; use official schedule for precision)
For taxable income of $100,000 or more, use the official Tax Rate Schedules in the 2025 ND-1 instructions or tax tables PDF. For lower incomes, consult the full tax table for exact dollar amounts.
How North Dakota Tax Brackets Work?
North Dakota taxes only North Dakota taxable income, which starts with your federal taxable income and adds or subtracts specific ND adjustments. Only the income within each bracket is taxed at that rate (marginal taxation).
Example (Single filer with $60,000 ND taxable income):
- First $48,475 taxed at 0% = $0
- Next $11,525 taxed at 1.95% = $224.74
- Total ND state tax: $224.74
This structure keeps effective tax rates very low for middle-income families.
Standard Deduction and Calculating North Dakota Taxable Income
North Dakota conforms to federal rules and does not have a separate state standard deduction. You subtract the federal standard deduction (or itemized deductions) when calculating federal taxable income, which becomes the starting point for ND taxable income.
2025 Federal Standard Deductions (used for ND):
- Single or Married Filing Separately: $15,750
- Married Filing Jointly or Qualifying Surviving Spouse: $31,500
- Head of Household: $23,625
- Additional amounts for age 65+ or blindness apply.
North Dakota taxable income = Federal taxable income + ND additions – ND subtractions (few common adjustments include certain military retirement pay or other state-specific items).
Comparing North Dakota Tax Brackets to Federal Income Tax Brackets
North Dakota’s top rate of 2.50% is far below the federal top rate of 37%. Even high earners benefit significantly.
For context, a single filer with $300,000 federal taxable income pays roughly 2.5% on the top ND portion versus much higher federal marginal rates. North Dakota ranks highly for tax competitiveness partly due to this low, flat-like structure after the zero bracket.
Other Taxes in North Dakota: Sales Tax, Property Tax, and More
Sales Tax
- State rate: 5.00%
- Average combined state + local rate: 7.08% (varies by city/county; some reach 8.5% with local add-ons)
- No tax on groceries or prescription drugs in most cases. Local rates change periodically—check the ND Tax Commissioner’s local tax rate lookup for your exact location.
Property Tax
- Effective rate on owner-occupied housing: approximately 0.94% (one of the lower rates nationally)
- Calculated using mill levies on taxable value (typically 4.5% of true value for residential property).
- No statewide cap on assessment increases, but local levy limits exist. Average annual tax bill is lower than the national average.
North Dakota also has a corporate income tax (1.41%–4.31%) and no estate or inheritance tax.
Available Tax Credits and Deductions in North Dakota
North Dakota offers numerous credits to reduce your tax bill, including:
- Charitable contributions (maternity homes, schools, endowments)
- Employer credits for child care, apprentices, internships, and hiring individuals with disabilities
- Investment credits (angel funds, automation equipment, renaissance zones)
- Adoption credit, long-term care insurance, and credit for taxes paid to other states
Check the ND-1 booklet for full details and required schedules. Many credits are non-refundable but can significantly lower liability.
How to File Your North Dakota State Tax Return?
- Deadline: April 15, 2026 (for 2025 returns)
- E-file: Free through the IRS Free File program or ND TAP (Taxpayer Access Point)
- Paper filing: Mail to the Office of State Tax Commissioner in Bismarck
- Estimated taxes: Required if you expect to owe $1,000+; use Form ND-1ES
- Extensions: Automatic if you file a federal extension
Track refunds via ND TAP’s “Where’s My Refund?” tool (processing usually takes about 30 days).
Frequently Asked Questions About North Dakota Tax Brackets
Do I need to file a North Dakota return?
Yes if you’re a resident/part-year resident/nonresident with ND-source income and are required to file federally (or have ND income).
Are Social Security or retirement benefits taxed?
Certain military and federal civil service retirement benefits may be deductible.
Will brackets change for 2026?
Brackets are inflation-adjusted each year. The 2026 withholding tables are already available, but full 2026 tax-year brackets will be published later in 2026.
How does ND compare for retirees?
Very favorably—low rates and targeted deductions make it tax-friendly.
Why North Dakota Tax Brackets Make It a Great Choice?
With low progressive rates, a generous zero bracket, and conformity to federal deductions, North Dakota’s tax system keeps more money in residents’ pockets. Whether you earn $50,000 or $500,000, the North Dakota tax brackets deliver simplicity and savings compared to higher-tax states.
For personalized advice, consult a tax professional or use the official ND forms and ND TAP portal. Always download the latest 2025 ND-1 instructions and tax tables directly from tax.nd.gov for the most accurate calculations.
Stay informed with updates from the North Dakota Office of State Tax Commissioner—your key resource for everything related to North Dakota tax brackets and state taxes.
This guide is for informational purposes only and is not tax advice. Tax laws can change; verify with official sources.