North Dakota Tax Guide
1.95%top marginal rate
North Dakota has one of the lowest income tax rates in the nation with a flat rate of 1.95%. Oil revenue helps keep taxes low. Some voters have pushed to eliminate the income tax entirely. Property taxes are near the national average.
North Dakota Tax at a Glance
Income Tax
1.95%
Flat rate
Sales Tax
5%
State-level rate
Property Tax
0.98%
11% below the national average
Estate Tax
No
No state estate tax
How North Dakota Compares to the National Average
Notable Tax Facts
- Flat income tax of 1.95% — one of the lowest income tax rates in the nation
- Oil revenue from the Bakken formation helps fund state government
- Voters rejected a ballot measure to eliminate the income tax entirely in 2022
- No estate or inheritance tax
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North Dakota Tax FAQ
What is North Dakota's income tax rate?
North Dakota has a flat income tax rate of 1.95%, one of the lowest in the nation. Many residents with income under $44,725 pay no state income tax at all.
Did North Dakota try to eliminate income tax?
Yes. A 2022 ballot measure to eliminate North Dakota's income tax was rejected by voters, who were concerned about revenue replacement and potential property tax increases.
How does oil affect North Dakota's taxes?
Revenue from the Bakken oil fields significantly supplements state funding, allowing North Dakota to maintain very low income tax rates without cutting services.
Does North Dakota tax Social Security?
No. North Dakota does not tax Social Security benefits.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.