Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and North Dakota state tax rates. Always consult a qualified tax professional.
North Dakota income tax overview
North Dakota has one of the lowest top income tax rates of any state that levies an income tax at all, capping out at just 2.5%. The state's tax revenue benefits substantially from oil production in the Bakken shale region, which has allowed North Dakota to keep personal income tax rates remarkably low while still funding robust public services. North Dakota fully exempts Social Security benefits from state tax, and the brackets are structured so that a significant portion of income is taxed at very low rates before the top rate even applies. The state's economy combines agriculture with energy production, and North Dakota consistently ranks among the most fiscally healthy states due to oil revenue diversification.
2026 North Dakota income tax rates
Tax rate
Income range (single filer)
0%
$0 – $47,150
1.95%
$47,151 – $238,600
2.5%
Over $238,600
Worked example: $75,000 salary in North Dakota
A $75,000 salary in North Dakota results in approximately $545 in state income tax (effective ~0.7%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $56,137, or $2,159 bi-weekly.
Key facts: 2.5% top rate — among the lowest of any income-tax state · First $47,150 entirely tax-free · Social Security fully exempt
Frequently asked questions — North Dakota income tax
North Dakota's substantial oil revenue from the Bakken shale formation has allowed the state to dramatically lower personal income tax rates over the past decade while maintaining strong public services and infrastructure spending.
No. North Dakota fully exempts Social Security benefits from state income tax, making it very favorable for retirees on top of the already low general rates.
Yes. North Dakota's bottom bracket taxes the first $47,150 of income (for single filers) at 0%, meaning many lower and moderate income residents pay no state income tax at all.
No. North Dakota cities and counties do not levy local income taxes.
North Dakota's 2.5% top rate is dramatically lower than Minnesota's 9.85% top rate, making North Dakota one of the most favorable states in the entire Midwest for income tax purposes.
Compare North Dakota to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.