We recently outlined a bill introduced by Senator Patty Murray (D-WA), which would expand the EITC and pay for it in part by further limiting the deduction for executive compensation. The Senator believes that the...
The facts on North Dakota’s Tax Climate
3.22%Individual Income TaxTop rate
4.53%Corporate Income TaxTop rate
$1074Property Tax CollectionsPer Capita
North Dakota's Individual Income Tax System
North Dakota's personal income tax system consists of five brackets and a top rate of 3.22%. That rate ranks 9th lowest among states levying an individual income tax. North Dakota's state and local income tax collections per person were $454 in 2012 which ranked 10th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
North Dakota's Corporate Income Tax System
North Dakota's corporate income tax system consists of three brackets and a top rate of 4.53%. That rate ranks 7th lowest among states levying a corporate income tax. North Dakota's state and local corporate income tax collections per person were $236 in 2012 which ranked 8th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
North Dakota Sales and Excise Taxes
North Dakota levies a 5% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 1.55%. North Dakota's state and local governments collect $1329 per person in general sales taxes and $605 per person in excise taxes, for a combined figure of $1933, which ranks 21st lowest nationally. North Dakota's gasoline tax stands at 23¢ (20th lowest nationally), while its cigarette tax stands at $0.44 (6th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
North Dakota Property Tax Collections Average
North Dakota's state and local governments collected approximately $1074 per person in property taxes, which ranks 19th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 25th in North Dakota
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, North Dakota taxpayers worked until April 25th (9th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Montana, April 14th (ranked 23rd earliest nationally); South Dakota, April 4th (ranked 3rd earliest nationally); and Minnesota, April 29th (ranked 5th latest nationally).
North Dakota's State and Local Tax Burden Below National Average
North Dakota's 2011 tax burden of 8.78% ranks 15th lowest out of 50 states, and is below the national average of 9.8%. North Dakota's taxpayers pay $4058 per capita in state and local taxes.
North Dakota's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
North Dakota's 2014 Business Tax Climate Index Ranks 28
North Dakota ranks 28th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Montana, 7th, South Dakota, 2nd, and Minnesota, 47th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
North Dakota Info
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