North Dakota

The facts on North Dakota’s Tax Climate

North Dakota's Individual Income Tax System
North Dakota's individual income tax system consists of five brackets with a top rate of 2.9%. The top rate ranks 43rd highest among states levying an individual income tax. North Dakota's state and local tax collections per person were $887 in 2013, which ranked 31st highest 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 with a top rate of 4.31%. The top rate ranks 43rd highest among states levying a corporate income tax. North Dakota's state and local corporate income tax collections per person were $312 in 2013 which ranked 6th 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 1.8%. North Dakota's state and local governments collect $2,024 per person in general sales taxes and $720 per person in excise taxes, for a combined figure of $2,745, which ranks 2nd highest nationally. North Dakota's gasoline tax stands at 23 cents per gallon, 34th highest nationally, while its cigarette tax stands at $0.44, 47th highest 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 $1,140 per person in property taxes in 2013, which ranks 30th nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 26th in North Dakota

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, North Dakota taxpayers have to work until April 26th (39th earliest nationally) to pay their total tax bill.

North Dakota's State and Local Tax Burden Ranks 33rd

North Dakota's 2012 tax burden of 9% ranks 33rd highest in the nation, and is below the national average of 9.9%. North Dakota's taxpayers pay $4,867 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 2016 Business Tax Climate Index Ranks 26th

North Dakota ranks 26th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (14th), individual income taxes (35th), sales taxes (22nd), unemployment insurance taxes (16th), and taxes on property (3rd), including residential and commercial property.
State Business Tax Climate Index (full study)

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