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North Dakota Tax Refund Calculator
Use this free calculator to estimate your North Dakota state tax refund for the 2025-2026 tax year. North Dakota uses a progressive income tax system with rates from 1.95-2.5%. Enter your income, filing status, and deductions below to see your estimated refund or balance due.
This calculator uses official North Dakota Department of Revenue tax tables and standard deduction amounts for the 2026 tax year. Results are estimates and should be verified with a tax professional.
North Dakota State Tax Calculator 2025-2026
North Dakota Tax System Details
North Dakota operates a progressive income tax system with 3 tax brackets. Tax rates range from 1.95-2.5%, applying to all taxable income earned by North Dakota residents. The state standard deduction for 2026 is $13,850 for single filers and $27,700 for married filing jointly.
How North Dakota Compares to Other States
North Dakota's top rate of 2.5% is the lowest among states with an income tax. South Dakota has no income tax, Minnesota's top rate is 9.85%, Montana's top rate is 5.9%, and Wyoming has no income tax. The state's oil wealth has historically allowed it to keep tax rates extremely low.
A single filer earning $80,000 would pay about $1,440 in North Dakota state tax — among the lowest in the nation.
Deductions and Credits Available in North Dakota
North Dakota offers a child care credit and a retirement income deduction of up to $5,000. Social Security benefits are fully exempt. The state fully conforms to federal AGI with very few modifications, making filing simple.
For federal tax purposes, North Dakota residents can deduct their state income tax payments on their federal return if they itemize deductions, subject to the $40,000 SALT cap.
Sales Tax in North Dakota
North Dakota's state sales tax rate is 5% on most goods. Groceries are exempt. Local option taxes can add up to 3%. Property taxes average about 0.91% of home value.
North Dakota Income Tax Overview
The standard deduction is subtracted from your gross income to determine your taxable income before the brackets are applied. Practical tip: the effective rate you actually pay is usually far lower than the top marginal rate. For typical middle-income earners, the effective state tax rate lands well below the headline rate.
The standard deduction directly reduces your taxable income before any tax brackets are applied. The state sales tax rate is 5% (avg combined 6.6%), which applies to most goods and some services depending on local laws. Property taxes in North Dakota average approximately 0.94% of home value. For context, the national average property tax rate is roughly 1.1%. Residents should check their city and county rates, as local add-ons can significantly increase the combined sales tax rate above the state base rate.
Compared to neighboring states — Montana (6.75%), Minnesota (9.85%), South Dakota (none) — North Dakota offers a distinct balance of rates, deductions, and available credits that can significantly impact your total tax burden. For retirement income: SS exempt, $5,000 pension deduction 65+. ND has some of the lowest state income tax rates in the nation. North Dakota offers various state-specific deductions and credits that can reduce tax liability. The annual filing deadline for state income tax returns is April 15, matching the federal deadline. Taxpayers who cannot file by the deadline can request an automatic six-month extension, though any tax owed must still be paid by April 15 to avoid interest and penalty charges. Self-employed individuals, recent movers, and retirees with complex income sources should consult a qualified tax professional for personalized guidance.
Frequently Asked Questions About North Dakota Taxes
What is the North Dakota state income tax rate structure?
North Dakota uses 1.1-2.9% progressive (5 brackets) system. This rate structure determines how much state tax you owe based on your taxable income after subtracting the standard deduction of $13,850 single / $27,700 married. Understanding where your income falls within this structure is the first step in estimating your state tax liability. Taxpayers should verify current year rates with the state department of revenue, as legislative changes can affect brackets and rates from year to year.
Does North Dakota tax Social Security and retirement income?
SS exempt, $5,000 pension deduction 65+. Social Security benefits are generally treated favorably across most states, and North Dakota follows this approach. However, federal taxation of Social Security may still apply based on your combined income level. Retirees should also consider how North Dakota handles pension income, 401(k) withdrawals, and IRA distributions when planning their retirement budget, as state-level treatment varies significantly across the country.
What are the sales and property tax rates in
The North Dakota state sales tax rate is 5% (avg combined 6.6%). Combined state and local rates can vary by city and county. Property taxes average approximately 0.94% of home value. ND has some of the lowest state income tax rates in the nation. Taxpayers should consider these consumption-based and property-based taxes when evaluating their overall tax burden, as they can significantly affect the true cost of living in North Dakota compared to other states with different tax structures.