North Dakota Tax Overview
North Dakota has effectively the lowest income tax rate among states that levy one, with a flat rate of just 1.95% enacted in 2024 reforms. Previously a progressive system, the state simplified to a near-flat structure thanks to revenues from the oil industry in the Bakken formation. North Dakota also offers one of the lowest costs of living in the country.
North Dakota Tax Quick Facts (2026)
| Income Tax | flat (top rate: 1.9%) |
| Sales Tax (State) | 5.00% |
| Property Tax (Avg Effective) | 0.98% |
| Median Household Income | $68,131 |
| Capital | Bismarck |
| Population | 0.8 million |
Frequently Asked Questions About North Dakota Taxes
Does North Dakota have a state income tax?+
Yes, North Dakota has a flat income tax system with a top marginal rate of 1.9%.
What is the property tax rate in North Dakota?+
The average effective property tax rate in North Dakota is approximately 0.98% of assessed home value. On a $300,000 home, that is about $2,940 per year.
What is the sales tax rate in North Dakota?+
The state sales tax rate in North Dakota is 5.00%. Local jurisdictions may add additional sales tax.
What is the median household income in North Dakota?+
The median household income in North Dakota is approximately $68,131 per year.
How does North Dakota's tax burden compare to other states?+
North Dakota's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
Related Calculators
James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.