Taxes in North Dakota

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 6.96 percent. North Dakota’s tax system ranks 19th overall on our 2022 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?

Top Individual Income Tax Rate

2.90%

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State and Local Individual Income Tax Collections per Capita

$485

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State and Local Tax Burden

8.8%

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Top Corporate Income Tax Rate

4.31%

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State Business Tax Climate Index Ranking

19

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State Sales Tax Rate

5.00%

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Average Local Sales Tax Rate

1.96%

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Combined State and Average Local Sales Tax Rate

6.96%

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State and Local General Sales Tax Collections per Capita

$1740

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State Gasoline Tax Rate (cents per gallon)

23¢

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State Cigarette Tax Rate (dollars per 20-pack)

$0.44

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.95%

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State and Local Property Tax Collections Per Capita

$1586

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