Estimate your North Dakota state income tax plus combined federal and ND state tax for 2026. 2.5% top rate.
North Dakota has very low income tax with a top rate of just 2.5%. North Dakota recently eliminated income taxes entirely for lower-income filers. North Dakota's income tax is one of the most favorable nationally for all income levels. Use the calculator above to estimate your combined federal and North Dakota state income tax for 2026. State tax figures use a simplified rate — for precise North Dakota state tax calculations, consult the North Dakota Department of Revenue or a licensed tax professional.
North Dakota uses a 2.5% top rate state income tax structure. Like most states, North Dakota starts its calculation from your federal Adjusted Gross Income (AGI), then applies state-specific adjustments — subtracting income North Dakota excludes from taxation (such as certain pension or Social Security income) and adding back any income North Dakota taxes that the federal government does not. After adjustments, the North Dakota standard deduction is applied, then the 2.5% top rate is applied to arrive at state taxable income.
North Dakota income tax is collected through employer paycheck withholding for W-2 employees and through quarterly estimated payments for self-employed residents and those with significant non-wage income. The North Dakota state return is generally due April 15, aligned with federal returns. Part-year residents and nonresidents who earn income sourced in North Dakota must also file a North Dakota return for that income portion.
Your North Dakota state income taxes are deductible on your federal Schedule A as part of the SALT (State and Local Tax) deduction, capped at $40,400 in 2026 under OBBBA. At the 22% federal bracket, paying $829 in North Dakota state income tax generates approximately $182 in federal tax savings, reducing the true net cost of your North Dakota taxes to about $647 for itemizing taxpayers.
Jordan is a single filer earning $75,000 in North Dakota. This shows how federal and North Dakota state income tax are calculated together.
Moving to a no-income-tax state (Texas, Florida, Nevada, or Wyoming) would save Jordan approximately $829/year ($69/month) in state income taxes. However, no-income-tax states often fund services through higher property taxes, sales taxes, or other fees, so a complete comparison requires evaluating all taxes together, not just income tax.
North Dakota Tax Rate and Annual Filing
North Dakota residents earning above the state filing threshold must file a North Dakota income tax return annually, typically due April 15. The 2.5% top rate applies after North Dakota-specific deductions and any state tax credits. Employers withhold North Dakota state income tax from employee paychecks throughout the year using North Dakota withholding tables, and any balance owed or refund due is settled when the annual state return is filed. Self-employed North Dakota residents make quarterly estimated payments to the state in addition to their federal quarterly estimated tax payments.
Federal SALT Deduction Reduces Net State Tax Cost
State income taxes paid in North Dakota reduce your federal taxable income through the SALT deduction (capped at $40,400 in 2026 under OBBBA). For a North Dakota resident in the 22% federal bracket paying $829 in state income tax, the SALT deduction recovers approximately $182 in federal taxes, so the true after-federal-benefit cost of North Dakota state income tax is about $647. This offset only benefits taxpayers who itemize deductions on federal Schedule A rather than taking the standard deduction.
Total Tax Burden: State Income Tax Is One Piece
State income tax is one component of your total tax burden in North Dakota. Property taxes, local income taxes (in some North Dakota cities and counties), and state and local sales taxes also contribute to your overall cost of living. When comparing North Dakota to other states, evaluate all tax types together rather than income tax in isolation. Use the calculator above to see your combined federal and North Dakota state effective rate at your specific income level.
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North Dakota has a 2.5% top rate state income tax for 2026. North Dakota has very low income tax with a top rate of just 2.5%. North Dakota recently eliminated income taxes entirely for lower-income filers. North Dakota's income tax is one of the most favorable nationally for all income levels. The state income tax is calculated separately from federal income tax and is paid through payroll withholding or quarterly estimated payments.
North Dakota has its own state standard deduction separate from the federal standard deduction ($15,750 single, $31,500 MFJ in 2026). For precise North Dakota state deduction amounts, consult the North Dakota Department of Revenue or a state tax professional.
North Dakota's 2.5% top rate state income tax can be compared to other states using our state tax calculator above. The U.S. average top marginal state income tax rate is approximately 5-6%. Nine states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), while California has the highest at 13.3%.
North Dakota offers state tax credits and deductions that may reduce your state tax liability. Common state credits include earned income credits, child tax credits, and credits for the elderly. Consult the North Dakota Department of Revenue website or a licensed tax professional for credits specific to your situation and income level.
Use the calculator above. Enter your income and ND is pre-selected as your state. The calculator computes your 2026 federal income tax using the One Big Beautiful Bill Act brackets (10%-37%), adds your estimated North Dakota state income tax (2.5% top rate simplified), and displays your total tax burden, combined effective rate, and annual take-home pay. All calculations happen instantly in your browser.