How to Use This Calculator
Enter your income, filing status, and any deductions. The calculator computes your North Dakota state income tax alongside your federal tax, showing exactly how much goes to each and what you take home.
The most useful thing to try? See how North Dakota's flat 1.95% rate affects different income levels, then test how deductions and retirement contributions change your bottom line.
Here's what each field means:
Annual Income is your total earnings before any taxes. Include wages, freelance income, investment income, and any other sources.
Filing Status determines which deductions and exemptions apply. North Dakota uses filing statuses similar to the federal system.
North Dakota Income Tax: What You Need to Know
North Dakota uses a flat income tax of 1.95% on all taxable income. Unlike states with progressive brackets, everyone pays the same percentage regardless of how much they earn. A teacher making $45,000 and a CEO making $500,000 both pay 1.95%.
North Dakota has the lowest income tax rate of any state that levies one — just 1.95% as a flat rate starting in 2024. Before that, the state had a graduated system with rates from 1.1% to 2.9%, which were already among the nation's lowest. North Dakota conforms to the federal standard deduction and starts with federal taxable income, making the calculation very simple. The state's low tax rates are funded in part by oil and energy revenues. Notably, the first $44,725 of taxable income for single filers is completely exempt from state tax.
A Real Example
Let's say you're a single filer earning $75,000 in North Dakota. After applying the standard deduction of $14,600, your approximate North Dakota state income tax would be around $410, for an effective state tax rate of about 0.5%.
That's just the state portion. Federal income tax and FICA taxes are additional.
Deductions and Exemptions
Standard Deduction: $14,600 for single filers and $29,200 for married couples filing jointly.
Federal standard deduction conformity. The first $44,725 (single) / $74,750 (MFJ) of taxable income is exempt. North Dakota does not require many taxpayers to even file a state return because of the high exemption threshold.
Local Taxes
No local income taxes in North Dakota.
Recent Changes
Moved to flat 1.95% rate with high exemption amounts in 2024. Many middle-income North Dakotans effectively pay no state income tax at all.
How to Use This Calculator Strategically
Model a raise or job change. With a flat tax, the math is simpler — every additional dollar is taxed at 1.95%. But deductions and credits can still shift your effective rate.
Compare filing statuses. Even with a flat rate, different filing statuses unlock different deduction amounts that can affect your bottom line.
Plan retirement contributions. See how 401(k) or IRA contributions reduce your North Dakota taxable income and lower your state tax bill.
Evaluate a move. Compare North Dakota's flat 1.95% rate to other states. Depending on your income level, a flat tax state might save you money — or cost you more — compared to a progressive system.
References
- North Dakota Office of State Tax Commissioner. (2025). Individual Income Tax.
This calculator is for educational purposes only and does not constitute tax or financial advice. Tax rates and rules change regularly. Consult a qualified tax professional for guidance specific to your situation.