North Dakota Tax Guide

Comprehensive tax information for North Dakota (ND). Last reviewed 2026-07-24.

Income Tax

2.5%

Top marginal rate

Sales Tax (Avg)

6.85%

5% state + 1.85% avg local

Property Tax (Avg)

0.97%

$2,407 median bill

Individual Income Tax

Rate Structure

Typeprogressive
Top marginal rate2.5%
Bottom rate0%
Number of brackets3

Standard Deduction

$13,850 (single) / $27,700 (married), conforms to federal

Sales Tax

The state sales tax rate is set by the state legislature. Local jurisdictions (cities, counties, special districts) may add their own sales taxes on top. The figures below are state-wide averages, not the exact rate you pay.

State Base Rate

5.00%

Official rate set by state law

Average Local Add-On

1.85%

Weighted average of all local jurisdictions

State Average Combined

6.85%

State + average local

Important: The combined rate above is a state-wide average. Your actual sales tax rate depends on your specific city and county. Some locations in North Dakota may have combined rates significantly higher or lower than this average. Check your local rate at the North Dakota Department of Revenue or use the Tax Foundation's sales tax locator.

Source: State base rate from North Dakota Department of Revenue. Average local add-on and combined rate from Tax Foundation "State and Local Sales Tax Rates" report.

Property Tax

Property taxes are set locally by counties, cities, school districts, and special districts. The figures below are state-wide averages and medians, not the rate on any specific property.

Average Effective Rate

0.97%

of home value annually (state average)

Median Annual Bill

$2,407

on owner-occupied housing (Census data)

Important: Property tax rates vary significantly within North Dakota by county, city, and school district. The "average effective rate" is the total property tax paid divided by total home value across the state. Your actual rate depends on your property's assessed value, local millage rates, and any applicable exemptions (homestead, senior, veteran, etc.). Contact your county tax assessor for your exact property tax.

Source: Average effective rate from Tax Foundation analysis of Census data. Median annual bill from U.S. Census Bureau American Community Survey (ACS) 5-year estimates on owner-occupied housing.

Additional Tax Rules

How North Dakota treats retirement income, capital gains, estates, and more.

Social Security Benefits

Exempt

Capital Gains Treatment

Taxed as ordinary income; rates reduced for 2024

Estate / Inheritance Tax

None

Filing Deadline

April 15

Notes & Recent Changes

North Dakota has the lowest top marginal income tax rate among states with an income tax (2.5%).

Verified Source

Data last verified on 2026-07-24. Source: North Dakota Department of Revenue.

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