Income Tax for North Dakota (2026)

How This Calculator Works in North Dakota

This calculator applies North Dakota's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

North Dakota Overview

North Dakota levies one of the lightest income taxes in the nation, with a top rate of approximately 1.95%. Oil extraction taxes from the Bakken formation fund a large share of state government, keeping income tax rates minimal. The state has considered eliminating the income tax entirely, and its Legacy Fund (financed by oil revenue) provides fiscal stability.

How North Dakota Compares

North Dakota's top income tax rate of 1.95% compares to Minnesota at 9.85% and South Dakota at 0%. The rate differences can meaningfully impact take-home pay for workers near state borders.

North Dakota's income tax rate of 1.95% compares to a national average of approximately 5.04%. This is below the national average.

Tips for North Dakota Residents

• 1North Dakota has one of the lowest income tax rates in the country — the top rate is approximately 1.95% on income over $225,975 (single).
• 2With such low rates, North Dakota's income tax generates relatively little revenue; the state relies heavily on oil extraction taxes from the Bakken formation.
• 3North Dakota does not tax Social Security benefits.
• 4The state has been considering eliminating its income tax entirely, following in the footsteps of neighboring South Dakota and Montana's lower rates.
• 5North Dakota's Legacy Fund, seeded by oil tax revenue, functions as a savings account for future generations when oil production declines.

Frequently Asked Questions