Tool | October 2017

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, sin products, property, and more -- across the U.S.

North Dakota

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The Bottom Line
Map of North Dakota

Most Tax-Friendly

The Peace Garden State offers modest sales taxes that favor agriculture, and has been cutting income taxes for several years in a row -- 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 6.78%, 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 $37,950 of taxable income for singles and up to $63,400 for married couples filing jointly)

High: 2.90% (on taxable income over $416,700)

Effective income tax rate: 1.10% single/ 1.56% married.

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: $0.23 per gallon.
Diesel: $0.23 per gallon.

Property Taxes

The median property tax on North Dakota's median home value of $153,800 is $1,722.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in North Dakota.

Vehicle Taxes

5% excise tax due on purchases.

Sin Taxes

Beer: $0.39 per gallon
Wine: $1.06 per gallon
Liquor: $4.66 per gallon
All alcohol sales are also subject to a 7% sales tax.

Cigarettes: $0.44 per pack
Pipe tobacco and cigars: 28% of the wholesale price
Chewing tobacco: 16 cents per ounce
Snuff: 60 cents per ounce

Travel Taxes

Hotel: The state tax rate on lodging is 5%. Cities add between 1% and 3%.

Rental cars: 3%. Sales tax is also due. Three cities (Bismarck, Grand Forks, and Minot) impose a 1% tax on car rentals at the airport or delivered to a renter who was picked up by the retailer at an airport.

Taxes On Wireless Service

12.39%

Inheritance and Estate Taxes

There is no inheritance tax and no estate tax.

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