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. Property taxes in North Dakota are slightly above 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 $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 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.