Does North Dakota have a state income tax?

Yes. North Dakota has a state income tax with a top rate of 1.9%.

How much is North Dakota state tax on a $100,000 salary?

On a $100,000 salary in North Dakota, state income tax is approximately $1,678. Your estimated total take-home pay is $77,502/year.

What other taxes does North Dakota have?

North Dakota has a 5% state sales tax with local add-ons bringing combined rates to 5-8.5% (Fargo 7.5%, Bismarck 7%). Property tax averages 0.99% effective — moderate. North Dakota has no estate tax. ND conforms to federal standard deduction. The Bakken oil formation (Western ND) drives economic activity + state surplus.

How does North Dakota compare to other states for taxes?

North Dakota's top rate of 1.9% compares favorably — below the national median for state income taxes.

What is North Dakota's income tax rate?

North Dakota has a flat 1.95% income tax — the LOWEST flat rate among the 50 states with income tax (excluding the 9 no-tax states). HB 1158 (2023) collapsed the prior 5-bracket progressive structure (1.10%-2.90% top) into a single flat rate. Most professionals pay effective rates very close to 2% of taxable income — meaningfully lower than any other income-tax state.

What is the Bakken oil boom impact?

Western North Dakota's Bakken Formation has driven significant oil/gas extraction since 2010. Williston, Dickinson, Watford City + surrounding areas have substantial oil & gas industry employment. The state's Legacy Fund (~$10B+) is funded by oil severance taxes — providing fiscal stability and supporting the low income tax rate. Boom-bust cycles do affect Western ND employment.

How does ND compare to peer states for taxes?

ND 1.95% flat is dramatically lower than MN 9.85% top, IA 3.8% flat, MT 5.9% top, NE 4.55% top. Among low-tax states: ND 1.95% beats AZ 2.5% and IN 2.95%. Combined with federal standard deduction conformity + no estate tax, ND has one of the most favorable tax structures for working professionals in the country.

Is North Dakota retirement-friendly?

Yes. Low flat tax (1.95%) on retirement income, federal standard deduction conformity, no estate tax, moderate cost of living, strong Legacy Fund providing fiscal stability. Caveats: cold winters significant lifestyle factor, limited specialty healthcare outside Fargo + Bismarck, distance from family/medical for many.

State Tax Guide

North Dakota State Income Tax Guide (2026)

North Dakota has a flat 1.95% income tax (LOWEST flat rate among states with income tax) — combined with the Bakken oil boom economy and structurally affordable Midwest cost of living.

Top State Rate

1.9%

$100k Take-Home

$77,502

/year (single)

State Tax on $100k

$1,678

single filer

North Dakota Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
1.95%	$0→All income — North Dakota uses flat rate post-2023 reform

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $15,000 single / $30,000 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in North Dakota — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
North Dakota State Tax	−$1,678	−$140
Take-Home Pay	$77,502	$6,459

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

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The 30-second version

1.North Dakota has a flat 1.95% income tax — LOWEST flat rate among states with income tax.
2.Bakken oil formation drives Western ND economy + state Legacy Fund (~$10B+) supporting fiscal stability.
3.Standard deduction conforms to federal ($16,100 single / $32,200 MFJ).
4.Property tax 0.99% effective — moderate. No estate tax.
5.Major employers: Bakken oil & gas industry (Continental Resources, Hess, ConocoPhillips, Marathon), Sanford Health (Fargo), Altru Health (Grand Forks), University of North Dakota, North Dakota State University, agriculture (wheat, soybeans, corn).

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and North Dakota Office of State Tax Commissioner flat 1.95% rate per HB 1158 (2023). The calculator at the top of this page applies ND's flat rate. ND conforms to federal AGI starting point and federal standard deduction.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the North Dakota Department of Revenue's published 2026 schedule.

Our honest opinion (which is just an opinion)

North Dakota offers the lowest flat-rate income tax in the country (excluding no-tax states). Combined with federal standard deduction conformity and no estate tax, ND's tax structure is genuinely favorable. The Bakken oil economy provides high-paying industry jobs but with boom-bust cycles.

The case for North Dakota:

Flat 1.95% income tax — LOWEST flat rate among income-tax states
Standard deduction conforms to federal — simplifies filing
Bakken oil & gas industry employment in Western ND
Legacy Fund (~$10B+) provides fiscal stability + supports low taxes
No estate tax
Strong UND + NDSU university talent pipelines

The case against:

Cold winters genuinely difficult — meaningful lifestyle factor
Limited high-comp career mobility outside oil & gas + Fargo + Bismarck
Bakken oil employment is genuinely cyclical with commodity prices
Smaller specialty subspecialty markets than peer states
Distance from major medical centers + family for many
Limited cultural amenities outside Fargo metro

Honest take: North Dakota is genuinely competitive for Bakken oil & gas industry workers, Sanford Health + Altru Health healthcare workers, UND + NDSU faculty/staff, agricultural sector. The 1.95% flat tax is structurally exceptional — meaningfully better than any other income-tax state for working professionals.

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney.
Tax law changes. This guide reflects 2026 IRS schedules and current ND Office of State Tax Commissioner rules.
Bakken oil employment is genuinely cyclical — economic environment varies with commodity prices.
Property tax estimates vary by county. Williston/Williams County (Bakken area) differs from Fargo/Cass.
Cold winter climate is a lifestyle consideration.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current North Dakota Office of State Tax Commissioner guidance.