NORTH DAKOTA
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NICKNAME
The Peace Garden State
BOTTOM LINE: NOT TAX-FRIENDLY
North Dakota is one of the minority of states that tax at least some portion of Social Security benefits, and it offers no tax breaks for retirement income. State income-tax rates range from a low of 1.51% to a high of 3.99% on taxable income of more than $379,150 for joint filers. Residential property is taxed at 9% of assessed value, and seniors may qualify for a homestead tax credit.
STATE SALES TAX
5% (food and prescription drugs are exempt). The tax rate is 6% on lodging and 7% on alcoholic beverages. Cities and counties that have adopted home-rule charters may levy additional sales and use taxes up to 3%.
INCOME-TAX RANGE
Low: 1.51% (on up to $34,500 of taxable income for singles or $57,700 for marrieds filing jointly)
High: 3.99% (on taxable income over $379,150)
SOCIAL SECURITY
Benefits are taxed to the same extent as on the federal tax return.
EXEMPTIONS FOR OTHER RETIREMENT INCOME
North Dakota does not offer any retirement-income tax breaks for seniors. Out-of-state government pensions are fully taxed.
PROPERTY TAXES
Property is subject to tax by the state, counties, townships and municipalities. Residential property is taxed at 9% of assessed value.
Tax breaks for seniors: A Homestead Tax Credit is available to senior citizens (age 65 and older) who own or rent their home. Your income, plus the income of your spouse and any dependents, may not exceed $26,000 for the calendar year preceding the assessment date. Your assets may not exceed $75,000. The size of the credit depends on income; the maximum homestead credit is $4,500 for those with income of $18,000 or less).
INHERITANCE AND ESTATE TAXES
There is no inheritance tax and no estate tax.
Visit RetirementLiving.com for a complete rundown of taxes in North Dakota.
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