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?

Related Articles

North Dakota May Consider Property Tax Abolition

March 31, 2010

North Dakota Cuts Income Tax; Missouri Considering

May 27, 2009

State Budgets: North Dakota Debates How to Spend Growing Surplus

December 27, 2008

Tax Foundation Releases Report on North Dakota Ballot Initiative

October 20, 2008

North Dakota’s Measure 2: How Would Rate Cuts Affect the Peace Garden State’s Competitiveness?

October 17, 2008

Important Tax Cases: Quill Corp. v. North Dakota and the Physical Presence Rule for Sales Tax Collection

July 19, 2005