What is North Dakota's income tax rate?

North Dakota uses three brackets. The lowest bracket is taxed at 0%, the middle near 1.95%, and the top near 2.5%. That top rate is among the lowest of any state that taxes income.

Does North Dakota tax all of my income?

No. Income below the first bracket threshold is taxed at 0%, and you subtract the federal standard deduction first. Only income above the threshold is taxed, and even then at very low rates.

What standard deduction does North Dakota use?

North Dakota starts from federal taxable income, so it effectively uses the federal standard deduction — about $14,600 for single filers and $29,200 for married filing jointly in 2024.

Is North Dakota a good state for taxes?

On income tax, yes. North Dakota's rates are very low and it has no local income tax. Property and sales taxes, however, fund much of local government, so total tax burden depends on your situation.

It is a close estimate using 2024 brackets and the standard deduction. Itemized deductions, credits, capital gains treatment, and other adjustments can change your actual North Dakota tax.

North Dakota Income Tax Calculator

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The North Dakota income tax calculator estimates the state tax you owe using North Dakota’s distinctive low brackets. The bottom bracket is taxed at 0% and the top marginal rate sits near 2.5%, making North Dakota one of the lightest income-tax states in the country.

How it works

North Dakota piggybacks on federal taxable income, so the steps are:

taxable income = gross income - federal standard deduction
state tax      = progressive brackets applied to taxable income
                 (0% / ~1.95% / ~2.5%)
effective rate = state tax / gross income

Each bracket rate applies only to the income inside that band, so even high earners pay 0% on the first slice and the low middle rate on most of the rest.

Worked example

A single filer with $70,000 gross income (2024):

Taxable income: 70,000 - 14,600 = $55,400
First $44,725 taxed at 0% = $0
Remaining $10,675 taxed at 1.95% = **$208**
North Dakota tax ≈ $208, an effective rate of about 0.3%.

Tips and notes

0% bottom bracket. A large share of every return is taxed at nothing — the reason North Dakota bills are so small.
No local income tax. North Dakota cities and counties do not add their own income tax.
Use AGI for accuracy. Start from adjusted gross income if you have above-the-line deductions like HSA or self-employment tax.