Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. 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 The Peace Garden State offers modest sales taxes that favor agriculture, and has been cut income taxes to the point that they’re barely there. Property taxes are middle of the road, and the state scores well for fiscal stability, indicating that it will be able to stay tax-friendly in the future. Sales Tax 5% state levy. Localities can add as much as 3.5%, and the average combined rate is 6.85%, according to the Tax Foundation. “New farm machinery, new farm machinery attachments or new irrigation equipment [used] exclusively for agricultural purposes” is taxed by the state at 3%. Local taxes may still apply. Income Tax Range Low: 1.10% (on up to $38,700 of taxable income for singles and up to $64,650 for married couples filing jointly)High: 2.90% (on taxable income over $424,950)Effective tax rate: 1.1% for single filers, 1.58% for joint filers. See Kiplinger.com’s Retiree Tax Map to learn how North Dakota taxes Social Security income and other forms of retirement income. Motor Fuel Taxes Gasoline: $0.2300 per gallon. Diesel: $0.2300 per gallon. Property Taxes In North Dakota, residents pay an average of $1,056 in taxes per $100,000 of assessed home value. Vehicle Taxes 5% excise tax due on purchases. Sin Taxes Cigarettes: $0.44 per packCigars: 28% of the wholesale price Chewing tobacco: 16 cents per ounceSnuff: 60 cents per ounceBeer: $0.39 per gallonWine: $1.06 per gallonLiquor: $4.66 per gallonAll alcohol sales are also subject to a 7% sales tax. Taxes On Wireless Service 14.13% Inheritance and Estate Taxes None. About our methodology