How does North Dakota’s tax code compare? North Dakota has a graduated state individual income tax, with rates ranging from 1.95 percent to 2.50 percent. North Dakota has a graduated corporate income tax, with rates ranging from 1.41 percent to 4.31 percent. North Dakota also has a 5.00 percent state sales tax rate and an average combined state and local sales tax rate of 7.04 percent. North Dakota has a 0.97 percent effective property tax rate on owner-occupied housing value.
North Dakota does not have an estate tax or inheritance tax. North Dakota has a 23 cents per gallon gas tax rate and a $0.44 cigarette excise tax rate. The State of North Dakota collects $7,007 in state and local tax collections per capita. North Dakota has $12,057 in state and local debt per capita and has a 67 percent funded ratio of public pension plans. North Dakota’s tax system ranks 9th overall on the 2025 State Tax Competitiveness 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 2024: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
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