The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
North Dakota Tax Rates, Collections, and Burdens
How does North Dakota’s tax code compare? North Dakota has a graduated individual income tax, with rates ranging from 1.10 percent to 2.90 percent. North Dakota also has a 1.41 percent to 4.31 percent corporate income tax rate. North Dakota has a 5.00 percent state sales tax rate, a max local sales tax rate of 3.50 percent, and an average combined state and local sales tax rate of 6.97 percent. North Dakota’s tax system ranks 17th overall on our 2023 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and North Dakota is no exception. The first step towards understanding North Dakota’s tax code is knowing the basics. How does North Dakota collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?
State Tax Data
Average Local Sales Tax Rate1.96%See Full Study
State and Local General Sales Tax Collections per Capita$1732Rank: 7
State Gasoline Tax Rate (cents per gallon)23¢Rank: 40
State Cigarette Tax Rate (dollars per 20-pack)$0.44Rank: 48
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