How much is North Dakota income tax?
North Dakota income tax at 3 levels of North Dakota taxable income — what is left after North Dakota's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $80.0% effective · 1.95% marginal | $00.0% effective · 0% marginal |
| $100,000 | $9831.0% effective · 1.95% marginal | $3350.3% effective · 1.95% marginal |
| $250,000 | $3,9081.6% effective · 2.28% marginal | $3,2601.3% effective · 1.95% marginal |
What are North Dakota's income tax brackets for 2026?
| Taxable income | Rate |
|---|---|
| Up to $49,575 | 0% |
| Over $49,575 up to $250,400 | 1.95% |
| Over $250,400 | 2.5% |
| Taxable income | Rate |
|---|---|
| Up to $82,800 | 0% |
| Over $82,800 up to $304,850 | 1.95% |
| Over $304,850 | 2.5% |
Source: ND OSTC Form ND-1ES (2026) rate schedules, checked September 11, 2026.
Can you deduct North Dakota income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of North Dakota taxable income owes about $3,908 in North Dakota income tax — 10% of that cap before any property tax.
SALT cap workaroundsDoes North Dakota have a pass-through entity tax (PTET)?
No. North Dakota has no elective pass-through entity tax, so an owner's North Dakota income tax on business profit is paid personally and counts toward the federal SALT cap.
When are North Dakota estimated tax payments due?
North Dakota estimated tax is due April 15, June 15, September 15 and January 15 of the following year, in 4 equal instalments. Those are the same dates as the federal schedule. Source: Form ND-1ES, Estimated Income Tax – Individuals, 2026 (SFN 28709 (12-2025)).
Safe-harbor calculatorWhat is the penalty for underpaying North Dakota estimated tax?
North Dakota charges 12% a year on an underpaid instalment. Paying at least 90% of this year's tax or 100% of last year's on time avoids it. No estimated payments are required if you expect to owe less than $1,000. Source: Form ND-1ES, Estimated Income Tax – Individuals, 2026 (SFN 28709 (12-2025)).
Are HSA contributions deductible in North Dakota?
Yes. North Dakota follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers North Dakota taxable income as well as federal.
Does North Dakota give a tax break for 529 plan contributions?
Yes. North Dakota lets you deduct up to $5,000 a year of contributions to North Dakota's own 529 plan ($10,000 on a joint return). Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorWhich states have tax reciprocity with North Dakota?
North Dakota has mutual agreements with Minnesota and Montana: neither state taxes the other's residents on wages earned there, so those wages are taxed only where you live. Give your employer the exemption certificate and the state you work in stops withholding.
What is the property tax rate in North Dakota?
North Dakota's average effective property tax rate is 0.99% — the 21st highest of 51 jurisdictions and 1.1 times the national average of 0.9%. That is about $990 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in North Dakota each year?
Deductsy budgets about $50 a year for a North Dakota LLC — the annual report fee or minimum franchise tax, with a fee due every two years counted at half. Fees change, so confirm with North Dakota's business filing office.
North Dakota S-corp tax calculatorHow do North Dakota taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| North Dakota | 2.5% | $983 | 0.99% |
| Minnesota | 9.85% | $6,317 | 1.02% |
| Montana | 5.65% | $5,199 | 0.72% |
| South Dakota | None | $0 | 1.06% |
On $100,000 of taxable income a single filer's North Dakota income tax is $983 — more than in 1 of 3 neighboring states. The lowest is South Dakota at $0; the highest is Minnesota at $6,317. North Dakota's average property tax rate is higher than in 1 of 3.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
Tax moves that matter most for North Dakota
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The North Dakota calculator adds North Dakota's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and North Dakota income tax.
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