State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map North Dakota Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line 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: ExemptClothing: TaxableMotor Vehicles: Exempt from ordinary sales tax, but taxable under special 5% excise taxPrescription 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 packCigars: 28% of the wholesale priceChewing tobacco: $0.16 per ounceSnuff: $0.60 per ounceBeer: $0.16 per gallonWine: $0.50 per gallonLiquor: $2.50 per gallonAll 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.