Income Tax
North Dakota levies one of the lowest state income tax rates in the country, ranging from 1.95% to a top rate of 2.50%.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED NDINCTAX).
| Indicator | North Dakota | U.S. |
|---|---|---|
| Top Marginal Income Tax Rate (%) | 2.5 | 5 |
- •North Dakota's top income tax rate of 2.50% is one of the lowest in the nation among states with an income tax.
- •The state has cut income tax rates multiple times in the past decade.
Property Tax
North Dakota's effective property tax rate of 0.98% is close to the national average, applied against a median home value of $283,000.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED NDPROPTAX).
| Indicator | North Dakota | U.S. |
|---|---|---|
| Effective Property Tax Rate (%) | 0.98 | 0.9 |
- •North Dakota's median home value of $283,000 is well below the national median of $355,000.
- •Property tax relief programs have been expanded in recent years to ease burdens on homeowners.
Sales Tax
North Dakota's state sales tax rate is 5.0%, with combined state and local rates averaging around 7.0%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED NDSALESTAX).
| Indicator | North Dakota | U.S. |
|---|---|---|
| Average Combined Sales Tax Rate (%) | 7 | 7.1 |
- •Local jurisdictions in North Dakota can add their own sales taxes on top of the 5.0% state rate.
- •Groceries are generally exempt from North Dakota's sales tax.
Tax Burden
North Dakota's overall tax burden is among the lightest in the country, combining low income tax rates with the absence of an estate tax.
State tax collections per resident
1990–2025Census tax collections (NDTOTLTAX) divided by Census resident population (NDPOP).
| Indicator | North Dakota | U.S. |
|---|---|---|
| Top Marginal Income Tax Rate (%) | 2.5 | 5 |
- •North Dakota does not levy an estate or inheritance tax.
- •The state's Legacy Fund, built from oil tax revenue, exceeds $11 billion and helps offset the need for higher taxes.
Tax Revenue
Oil and gas extraction taxes are a major source of North Dakota's state tax revenue, funding the state's $11 billion+ Legacy Fund sovereign wealth reserve.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED NDTOTLTAX).
| Indicator | North Dakota | U.S. |
|---|---|---|
| Legacy Fund Assets ($B) | 11 | 0 |
- •North Dakota's Legacy Fund, built from oil extraction taxes, has grown to over $11 billion.
- •Oil and gas tax revenue allows North Dakota to maintain some of the lowest income tax rates in the country.