North Dakota Tax Calculator 2025
Calculate your North Dakota state income tax with our comprehensive 2025 calculator featuring the Peace Garden State's low progressive tax rates from 1.1% to 2.9%, Bakken oil boom advantages, and advanced tax planning tools for North Dakota's thriving energy and agricultural economy.
Calculate Your North Dakota Tax
Enter your income information to calculate North Dakota's progressive state income tax with rates ranging from 1.1% to 2.9% plus applicable deductions and Peace Garden State considerations.
North Dakota Tax Structure 2025
North Dakota operates a progressive income tax system with very competitive rates ranging from 1.1% to 2.9%, making it one of the most tax-friendly states in the nation. The Peace Garden State provides excellent benefits for retirees, energy workers, and agricultural professionals.
ND Progressive Tax Brackets (2025)
- 1.1% on income up to $41,775
- 2.04% on income $41,776-$101,050
- 2.27% on income $101,051-$206,200
- 2.64% on income $206,201-$440,600
- 2.9% on income over $440,600
Standard Deductions (2025)
- Single: $12,950
- Married Filing Jointly: $25,900
- Married Filing Separately: $12,950
- Head of Household: $19,400
North Dakota Tax Benefits and Peace Garden State Advantages
North Dakota provides exceptional tax benefits, particularly for retirees, energy sector workers, and agricultural professionals. The state's Bakken oil boom and agricultural heritage create unique tax advantages.
- Personal Exemption: $4,300 per taxpayer and qualifying dependent
- Railroad Retirement Exemption: Full exemption for railroad retirement benefits
- Pension Income Deduction: Significant deductions for pension income for seniors
- Social Security Exempt: Social Security benefits are not subject to ND tax
- Oil & Energy Depletion: Percentage depletion allowances for Bakken operations
- Agricultural Benefits: Special treatment for farm income and equipment
- Low Tax Rates: Among the lowest progressive rates in the nation (1.1%-2.9%)
North Dakota Residency and Energy Sector Tax Planning
Understanding North Dakota residency requirements and energy sector tax planning strategies is important given the state's Bakken oil boom and agricultural economy.
Establishing ND Residency
North Dakota considers you a resident if you are domiciled in North Dakota or you maintain a permanent place of abode in North Dakota and spend more than 183 days in the state during the tax year.
Bakken Energy Sector Benefits
North Dakota's Bakken oil industry benefits from percentage depletion allowances, intangible drilling cost deductions, and various energy production incentives that can significantly reduce tax liability.
Agricultural Tax Advantages
North Dakota's agricultural economy benefits from special property tax treatment for agricultural land, sales tax exemptions for farm equipment, and various agricultural income deductions.
Retirement Planning
North Dakota is extremely retirement-friendly with no tax on Social Security, railroad retirement exemption, low tax rates, and significant pension income deductions making it attractive for retirement planning.
Frequently Asked Questions
What are North Dakota's income tax rates for 2025?
North Dakota has progressive income tax rates ranging from 1.1% to 2.9% for 2025. The rates increase across five brackets, with the top rate of 2.9% applying to income over $440,600 for all filing statuses.
Is North Dakota tax-friendly for retirees?
Yes, North Dakota is retirement-friendly with no tax on Social Security benefits, railroad retirement benefits exemption, and significant pension income deductions for taxpayers 65 and older.
What is North Dakota's sales tax rate?
North Dakota has a state sales tax rate of 5%, with local jurisdictions able to add additional sales tax, resulting in combined rates typically ranging from 5% to 8% depending on location.
Does North Dakota tax oil and energy income?
North Dakota taxes oil and energy income as ordinary income at the same progressive rates (1.1%-2.9%), but provides significant depletion allowances and special deductions for Bakken energy operations.
What deductions are available for North Dakota taxpayers?
North Dakota offers standard deductions, personal exemptions, oil and gas depletion allowances, agricultural deductions, pension income deductions, and various business incentives for qualifying activities.
How does North Dakota compare to neighboring states for taxes?
North Dakota has very competitive tax rates with low progressive rates (1.1%-2.9%) compared to neighboring states, making it one of the most tax-friendly states in the Upper Midwest region.