Skip to content

Taxes In North Dakota

North Dakota Tax Rates, Collections, and Burdens

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?

Stay informed on the tax policies impacting you.

Subscribe to get insights from our trusted experts delivered straight to your inbox.

Subscribe

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

State Tax Data

Individual Taxes

Top Individual Income Tax Rate
2.50%See Full Study
State Local Individual Income Tax Collections per Capita
$576Rank: 40
State and Local Tax Burden
8.8%Rank: 9See Full Study

Business Taxes

Top Corporate Income Tax Rate
4.31%See Full Study
State Business Tax Climate Index Ranking
9See Full Study

Sales Taxes

State Sales Tax Rate
5.00%Rank: 32See Full Study
Average Local Sales Tax Rate
2.04%See Full Study
Combined State and Average Local Sales Tax Rate
7.04%Rank: 23See Full Study
State and Local General Sales Tax Collections per Capita
$1528Rank: 15
State Gasoline Tax Rate (cents per gallon)
23¢Rank: 41
State Cigarette Tax Rate (dollars per 20-pack)
$0.44Rank: 48

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.97%Rank: 20
State and Local Property Tax Collections Per Capita
$1567Rank: 30

All Related Articles

2024 state capital gains tax rates on long term capital gains

State Tax Rates on Long-Term Capital Gains, 2024

Savings and investment are critical activities, both for individuals’ and families’ financial security and for the health of the national economy as a whole. As such, policymakers should consider how they can help mitigate—rather than add to—tax codes’ biases against saving and investment.  

5 min read
latest state tax trends and state tax cuts revenue implications include responsible state income tax relief in 2024

Can States Afford Their Recent Tax Cuts?

With state tax revenues receding from all-time highs, there’s been a great deal of handwringing about whether states can afford the tax cuts adopted over the past few years. Given that 27 states reduced the rate of a major tax between 2021 and 2023, is there reason for concern?

4 min read
Economic Nexus Tax Treatment by State, 2024

Economic Nexus Treatment by State, 2024

Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer. 

4 min read
state flat tax trend and state flat income taxes 2024

The State Flat Tax Revolution: Where Things Stand Today

In 2021 and 2022 alone, more states enacted laws converting graduated-rate individual income tax structures into single-rate income tax structures than did so in the whole 108-year history of state income taxation up until that point.

10 min read
2024 sales taxes including 2024 sales tax rates 2024 state and local sales tax rates

State and Local Sales Tax Rates, 2024

Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).

9 min read