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North Dakota Income Tax Rates 2025

North Dakota has one of the lowest state income tax rates in the nation, with a progressive system ranging from 0% to 2.5%. The first bracket of income is taxed at 0%, effectively creating a built-in exemption for lower earners.

Tax Type

Progressive

Rate Range

0% – 2.5%

Brackets

3

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North Dakota is only part of the equation — federal taxes apply too.

State Tax Ranking

#10 of 51 Low tax burden at $75,000 income

At $75,000 income (single filer), North Dakota ranks #10 out of 51 states — where #1 is the lowest tax burden.

Best states to move to from North Dakota →

Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $103 0.21% $46,026
$75,000 $590 0.79% $66,461
$100,000 $1,078 1.08% $85,473
$150,000 $2,053 1.37% $122,880
$200,000 $3,028 1.51% $159,905

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

2025 Tax Brackets — Single Filer

Taxable Income Rate
$0 – $44,725 0%
$44,725 – $225,975 1.9%
Over $225,975 2.5%

2025 Tax Brackets — Married Filing Jointly

Taxable Income Rate
$0 – $89,450 0%
$89,450 – $225,975 1.9%
Over $225,975 2.5%

Tax Overview

This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.

Tax Planning Tip

In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.

North Dakota's progressive tax applies marginal rates to each bracket of income. With the first bracket taxed at 0%, many North Dakota residents pay very little in state income tax. The state uses federal taxable income as the starting point, making the filing process straightforward. North Dakota does not tax Social Security benefits.

Property Tax & Cost of Living

Property Tax Rate
0.98%
$2,450/yr on $250,000 home
Cost of Living Index
92
8% below national average
Median Home Value
$250,000
Housing index: 77 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.

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Frequently asked questions

What is North Dakota's income tax rate in 2025?

North Dakota has a progressive income tax with 3 brackets ranging from 0% to 2.5%. Your effective rate depends on your total taxable income.

Does North Dakota tax Social Security benefits?

North Dakota does not tax Social Security benefits at the state level.

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Last updated May 1, 2026 Tax year 2025-26

Data sources: IRS (irs.gov), Social Security Administration

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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