North Dakota Take-Home Pay Calculator
2.5% top rateEstimate your net paycheck after federal taxes, FICA, and North Dakota state income tax.
Last updated: April 2026
North Dakota Income Tax
North Dakota has one of the lowest state income tax rates in the country, with a top rate of just 2.5% on income above $225,975.
North Dakota State Income Tax: What You Need to Know
North Dakota has one of the lowest state income tax rates in the country, with a top rate of just 2.5% on income above $225,975.
North Dakota has one of the lowest state income tax burdens in the country. The top rate of 2.64% (effectively ~2.5% for most) is among the lowest of any state with an income tax. North Dakota's oil boom revenues have helped the state maintain low tax rates. North Dakota allows the federal standard deduction and conforms closely to federal income definitions. North Dakota has no city or local income tax — Fargo, Bismarck, and Grand Forks add no local wage withholding. North Dakota also fully exempts Social Security benefits from state income tax.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies North Dakota's 2.5% top rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
North Dakota Income Tax Brackets (2026, Single Filers)
| Income Range | Tax Rate |
|---|---|
| $0 – $44,725 | 1.10% |
| $44,725 – $225,975 | 2.04% |
| $225,975 – and above | 2.64% |
North Dakota Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $480 | $3,060 | $33,293 |
| $60,000 | $6,617 | $888 | $4,590 | $47,905 |
| $80,000 | $10,817 | $1,296 | $6,120 | $61,767 |
| $100,000 | $15,617 | $1,704 | $7,650 | $75,029 |
Frequently Asked Questions: North Dakota Taxes
What are North Dakota's income tax brackets for 2026?
North Dakota has three tax brackets for single filers: 1.1% on income up to $44,725, 2.04% on $44,725–$225,975, and 2.64% on income above $225,975. These are among the lowest rates of any state with a graduated income tax. North Dakota uses the federal standard deduction, so a single filer deducts $15,000 before applying these rates.
Does North Dakota have a local income tax?
No. North Dakota cities and counties do not impose a local income tax on wages. Fargo, Bismarck, Grand Forks, and Minot add no local wage withholding. North Dakota workers pay only state and federal income taxes.
Does North Dakota tax Social Security benefits?
No. North Dakota fully exempts Social Security benefits from state income tax. Combined with the very low rate structure, this makes North Dakota one of the most retirement-friendly states in the Midwest. Retirees on Social Security and modest pension income pay very little or no North Dakota income tax.
How does North Dakota's low rate compare to neighboring states?
North Dakota's top rate of ~2.5% is dramatically lower than Minnesota (9.85%), South Dakota (no income tax), Montana (6.75%), and Wisconsin (7.65%). Among states that do have income taxes, North Dakota is consistently among the lowest — only Arizona (2.5% flat) and Indiana (3.15%) are comparable or lower among neighboring/regional states.
How does North Dakota fund its state government with such low rates?
North Dakota benefits significantly from oil and gas revenues, particularly from the Bakken formation. Oil severance taxes and production taxes provide a substantial share of state revenue, allowing North Dakota to maintain low income tax rates. During periods of high oil prices and production, North Dakota accumulates significant budget surpluses.
What is North Dakota's minimum wage in 2026?
North Dakota's minimum wage is $7.25/hour — the federal minimum. North Dakota has not raised its state minimum above the federal floor. North Dakota also does not allow cities or counties to set higher local minimums by state law. This is consistent with North Dakota's generally low-regulation approach to business.