State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

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. Sales taxes in the Peace Garden State are below average, too. The state rate is a modest 5%. Local governments can add as much as 3.5%. However, according to the Tax Foundation, the average combined state and local sales tax rate is 6.96%, which isn't too bad. Property taxes in North Dakota are slightly above the national average.

Income Tax Range

Low: 1.1% (on up to $40,125 of taxable income for singles and up to $67,050 for married couples filing jointly)

High: 2.9% (on taxable income over $440,600)

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 $986 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.