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 12th overall on the 2027 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?
Get facts about taxes in your state and around the US
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?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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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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Sports stadium subsidies are salient political gimmicks designed to appear as if politicians are providing tangible benefits to taxpayers. The empirical evidence shows repeatedly that stadium subsidies fail to generate new tax revenue and new jobs or attract new businesses.
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Raising the combined US corporate rate to the second highest in the OECD would encourage corporations to depart from the US, reducing economic output and worker wages across the income spectrum.
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If voters are being asked to charge state legislators with raising the equivalent of a doubling of the current income and sales tax, shouldn’t they get to know what the plan is first?
Wireless taxes and fees set a new record high in 2024.
23 min read
Legal sports betting has grown rapidly since the Supreme Court granted states the ability to establish online sports betting markets in Murphy vs. NCAA in 2018.
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Taxes are on the ballot this November—not just in the sense that candidates at all levels are offering their visions for tax policy, but also in the literal sense that voters in some states will get to decide important questions about how their states raise revenue.
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Eliminating the property tax will unfortunately set North Dakota back in significant ways, making the state a national outlier and eroding regional competitiveness.
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The latest IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
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While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts—especially as a large number of major cities have combined rates of 9 percent or more.
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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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