State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

North Dakota State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

North Dakota

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The Bottom Line
Flag of North Dakota

Most Tax-Friendly

Even though North Dakota imposes an income tax, the rates are low, especially for mid-level earners. Plus, for 2021 and 2022, a $350 nonrefundable credit is available for each resident ($700 for married couples). Sales taxes in the Peace Garden State are below average, too. The statewide median property tax rate for North Dakota is below the national average.

Income Tax Range

Low: 1.1% (on up to $40,525 of taxable income for singles and up to $67,700 for married couples filing jointly)

High: 2.9% (on taxable income over $445,000)

Sales Tax

5% state levy. Localities can add as much as 3.5%, and the average combined rate is 6.96%, according to the Tax Foundation.

Groceries: Exempt
Clothing: Taxable
Motor Vehicles: Exempt from ordinary sales tax, but taxable under special 5% excise tax
Prescription Drugs: Exempt

Real Property Taxes

In North Dakota, the median property tax rate is $989 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 23¢ per gallon.
Diesel: 23¢ per gallon.

Sin Taxes

Cigarettes: $0.44 per pack
Cigars: 28% of the wholesale price
Chewing tobacco: $0.16 per ounce
Snuff: $0.60 per ounce

Beer: $0.16 per gallon
Wine: $0.50 per gallon
Liquor: $2.50 per gallon
All alcohol sales are also subject to a 7% sales tax.

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

No estate or inheritance tax.