North Dakota has a graduated state individual income tax, with rates ranging from 1.10 percent to 2.50 percent. North Dakota has a flat 4.31 percent corporate income tax rate, a 5.00 percent state sales tax rate, and an average combined state and local sales tax rate of 6.89 percent. North Dakota has a 0.92 percent effective property tax rate on owner-occupied housing value. North Dakota does not have an estate tax or inheritance tax. North Dakota’s gas tax is 23.03 cents per gallon, and its cigarette excise tax is $0.44 per pack of 20 cigarettes.
North Dakota raises tax revenue primarily through other taxes (52.2 percent of total state and local tax revenue), general sales taxes (20.9 percent), and property taxes (16.3 percent). North Dakota collects $9,834 in state and local tax collections per capita, carries $11,499 in state and local debt per capita, and has a 74 percent funded ratio of public pension plans. North Dakota’s tax system ranks 11th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and North Dakota is no exception. Use the tabs below to compare North Dakota taxes with other states and to see how North Dakota raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: 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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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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To alleviate the regressive impact on wireless consumers, states should examine their existing communications tax structures and consider policies that transition their tax systems away from narrowly based wireless taxes and toward broad-based tax sources.
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The state EV taxation landscape reflects the evolving transportation sector and the pressing need to address both fiscal gaps in road funding and environmental concerns.
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Any move to repeal the cap or enhance the deduction would disproportionately benefit higher earners, making the tax code more regressive.
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Property taxes are the primary tool for financing local governments and generate a significant share of state and local revenues.
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If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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As more and more states move away from throwback or throwout rules, those states that still impose these rules are becoming less attractive for businesses, which are incentivized to relocate their sales activities to non-throwback states.
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California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).
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