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North Dakota Tax

By Grace Lin | Updated October 20, 2026

📅 2026 Update: Recent Changes in North Dakota Tax Laws

Since the original article was published, several significant updates have occurred in tax laws across the United States. These changes impact how individuals and businesses in North Dakota may prepare and file their taxes. The earlier article continues further down the page.

🏛️ Changes in Pass-Through Entity Tax (PTET)

Several states have enacted Pass-Through Entity Taxes (PTET) since 2024. This tax allows partnerships and S corporations to pay taxes at the entity level. North Dakota has not introduced a PTET, but understanding these changes in neighboring states can provide insight into potential future developments.

📈 Hawaii and Iowa established PTETs in 2023.
🏢 Indiana and Kentucky followed suit with similar legislation.
🌊 Montana and Nebraska also enacted PTETs in 2023.

📅 Recent Legislative Changes

North Dakota has maintained its existing tax structure without new major legislation since the article's publication. However, it is essential to stay updated on potential changes in state tax law that could impact taxpayers in the future.

🏛️ Legislative sessions can bring new proposals each year.
⏳ Tax policy changes often occur in response to economic conditions.

📄 Important Forms and Processing Times

Taxpayers should be aware of the forms necessary for filing, which remain largely the same.

📄 Form 3911 can be used to trace a missing refund. Processing times may vary.
🕒 Form 8716 is for requesting an extension on business income tax filings.

📊 Free Tax Assistance Options

There are several free resources available for North Dakota taxpayers. These services can help individuals prepare their taxes without added costs.

🆓 IRS Free File allows eligible taxpayers to file for free.
🙋 VITA and TCE programs provide assistance, especially for low-income individuals and seniors.

📌 Key Points to Remember

📑 North Dakota has not yet introduced a PTET.
🏛️ Recent tax legislation in other states may influence future changes.
📄 Familiarity with essential tax forms is crucial for timely filing.
🆓 Free assistance programs are available to help with tax preparation.

💡 Tips for Understanding North Dakota Tax

Review your individual tax situation with an attorney. Understanding your specific circumstances is crucial for navigating tax laws effectively.

📝 Stay Updated on Tax Legislation

Keep an eye on any changes in state tax laws. Legislative sessions can bring new proposals that may affect your tax filings.

📅 Know Your Filing Deadlines

Be aware of important deadlines for filing forms. Missing these can lead to penalties or delayed refunds.

📄 Use the Correct Forms

Ensure you are using the correct forms for your tax filings. Using outdated or incorrect forms can lead to processing delays.

🏛️ Explore Free Tax Help Options

Take advantage of free tax preparation services offered by organizations like VITA and TCE. These programs can provide critical assistance, especially for those who may struggle with tax filing.

🕵️‍♂️ Understand Your Rights

Familiarize yourself with the Taxpayer Bill of Rights. This ensures you understand your rights as a taxpayer and helps promote fair treatment.

🏆 Tax Preparation Services Ranked by User Reviews (2026)

This section covers various tax preparation services that fit the topic of North Dakota tax laws. The services listed are based on Trustpilot data checked in October 2026. Ratings can change over time, and star ratings only reflect part of the customer experience, as unhappy clients often leave more reviews.

🥇 1. TaxSlayer

TaxSlayer has been rated 4.0. The service is known for its online tax preparation software, which is often praised for its affordability. However, some users report occasional issues with software glitches that may hinder the filing process.

🥈 2. KBO Tax & Accounting Services

KBO Tax & Accounting Services holds a 4.5 rating. They provide nationwide tax preparation along with bookkeeping and accounting services. While many clients appreciate their thorough approach, some note that in-person office locations are limited.

🥉 3. Advanta Tax

Advanta Tax averages a score of 4.3. This service offers nationwide tax services that include IRS resolution and assistance with state tax debt. Some clients have experienced delays in service, which can be a concern during peak tax season.

4️⃣ SMAART Tax

SMAART Tax has a Trustpilot score of 4.4. The service offers virtual tax assistance, catering to clients across all 50 states. While many users find their online services convenient, there are limited options for in-person consultations.

5️⃣ Libre Tax Service

Libre Tax Service holds a rating of 4.1. They specialize in online tax preparation and IRS audit defense. Some users report challenges with navigating their website, which can affect the user experience.

6️⃣ Jackson Hewitt Tax Service

Jackson Hewitt Tax Service has a score of 4.2. They are known for their tax preparation services available at various nationwide locations. However, some customers have expressed concerns about responsiveness in customer service.

🆓 Free Tax Assistance Options

The IRS offers several free programs to assist taxpayers. These include IRS Free File, VITA, and TCE, which provide essential help for those who may need assistance with their tax returns.

🔎 What to Compare When Choosing a Tax Service

🏷️ Service fees: Check for affordable pricing options.
📄 Type of service: Determine if you need in-person assistance or prefer online services.
⚡ Processing times: Understand how quickly your return can be filed.
🌟 Customer reviews: Read reviews to gauge overall satisfaction.
🎓 Specializations: Ensure the service covers your specific tax needs.

❓ Frequently Asked Questions

❓ What is a Pass-Through Entity Tax?

A Pass-Through Entity Tax allows certain business entities to pay taxes at the entity level rather than passing the tax burden to individual owners. This tax structure is designed to simplify tax filings for partnerships and S corporations.

🕒 What are the deadlines for filing taxes in North Dakota?

Tax deadlines can vary depending on the type of tax return being filed. Generally, individual income tax returns are due on April 15, while business tax returns follow a different schedule.

💻 How can I access free tax preparation services?

Free tax preparation services are available through programs like VITA and TCE. These services are designed to assist low-income individuals and seniors with their tax filings.

📑 What forms do I need to file for business taxes?

Businesses typically need to file specific forms such as Form 1065 for partnerships. It's important to use the correct forms to avoid delays in processing.

🤔 How do I trace a missing tax refund?

If you have not received your tax refund, you can complete Form 3911 to request a trace. Processing times may vary, so it's advisable to submit this form as soon as possible.

📞 Can I get in-person assistance with my tax filings?

Yes, you can seek in-person assistance at various IRS Taxpayer Assistance Centers. These centers provide help with tax questions and filing procedures.

⚖️ Recent Court Cases Related to Taxes

Recent court rulings have addressed various tax-related issues, impacting how taxes are interpreted and enforced in North Dakota. These cases highlight the importance of understanding tax laws as they evolve.

For more details, you can browse more rulings on the news page.

End of October 2026 Update

FULL List to North Dakota Tax Forms

Primary Concerns:

While many states have been faced with dire circumstances in terms of budget deficits in the aftermath of the economic crisis, North Dakota has been an extremely rare exception.

In 2009, North Dakota not only had no budget problems, but had a notable budget surplus, due to effective collections of income taxes. As a result, while many states were trying to reassess their North Dakota law on tax to try to increase revenue or slash budgets toward something that could be much more manageable, North Dakota actually decreased both its income and property taxes.

What made North Dakota such a success story in harsh economic climate? The answer lies in many of the particularities specific to the state. North Dakota's population has remained fairly flat since the great depression, with a total population of about 700,000 spread over a sizable geographic area. The unemployment rate is only 4.3%, the lowest in the nation by a considerable margin.

The state therefore, has more of its population working and paying taxes more than any other state, and thus also has to pay less welfare and unemployment than any other state. Also, because of its fairly sparse population centers, the state does not require a comprehensive infrastructure that can quickly drain a state's financial reserves.

Many observer, especially those who support nationalized banking can also point to the fact that the Bank of North Dakota is a state funded bank performing many of the operations of any regular commercial bank.

However, much of the answer to North Dakota's financial prosperity still lies in its relatively unique economic construction, which, provided there are no dramatic influxes of people moving to the state, should lead to many years of continued prosperity, even in the face of a harsh economic climate.

Income Tax:

Any individuals in North Dakota who reside in North Dakota and earn income either in the state or out of it, are required to file a North Dakota state income tax return.

Individuals who reside only part time in the state are required to file a North Dakota state income tax return if they draw income from within the state. The rates of taxation in North Dakota are progressive with staggered brackets of taxation.

For single taxpayers making $34,000 or less, the rate of taxation is 1.84% of the total income. Between $34,000 and $82,400, the rate is $625.60 (or 1.84% or $34,000) plus 3.44% of all excess income over the bracket base of $34,000. Therefore, if an individual made $50,000 in North Dakota in a given year, they will pay $625.60 for the first $34,000 and 3.44% on the remaining $16,000 (or $550.40).

Between $82,400 and $171,850 the tax is $2,290.56 plus 3.81% over the bracket base. Between $171,850 and $373,650 the tax is $5,698.61 plus 4.42% over the base. Over $373,650, the tax is $14,618.17 and 4.86% of the excess over the base.

For married couples filing jointly or qualified surviving spouses, the rates remain the same, but the bracketing is different. Couples making $56,850 or less, the rate is 1.84% of total income. Between $56,850 and $137,300, the tax is $1,046.04 plus 3.44% over the base.

Between $137,300 and $209,250, the tax is $3,813.52 with 3.81% of excess over the base. Between $209,250 and $373,650 the tax is $6,554.82 plus 4.42% over the base. Over $373,650 the tax is $13,821.30 with 4.86% of excess over the top base.

For heads of household making less than $45,550, the rate remains 1.84%. Between $45,550 and $117,650 the tax is $838.12 with 3.44% of the excess over the base. Between $117, 650 and $190,550 the tax is $3,318.36 with 3.81% of excess over the base.

For those making between $190,550 and $373,650 the tax is $6,095.85 plus 4.42% of the excess over the base. Finally, those making over $373,650 the tax is $14,188.87 plus 4.86% of the excess over the base.

And finally, for married people filing separately making less than $28,425 pay 1.84% of their income, while those making between $28,425 and $68,650 pay the tax of 523.02 with 3.44% of excess over the base.

Between $68,650 and $104,625 the tax is $1,906.76 plus 3.81% of excess over the base, and between $104,625 and $186,825 the tax is $3,277.41 plus 4.24% of excess over the base. And for married people filing separately making over $186,825, the tax is $6,910.65 plus 4.86% of excess over the top base.

Corporate Income Tax:

Corporate Income Tax in North Carolina is applied to nearly all business operating in the state, who either reside there or draw income from inside the state. The tax rate is a progressive rate staggered in three brackets.

Corporations making less than $25,000 have to pay a tax of 2.10% on their income. Those making between $25,000 and $50,000 must pay a tax of $525 (2.10% of $25,000) plus 5.25% on any excess over the $25,000 bracket base. Corporations making over $50,000 must pay a tax of $1,837.50 plus 6.40% on all excess income over $50,000.

North Dakota also offers a very lucrative corporate incentive to businesses that qualify for an exemption granted by the State Board of Exemption. This incentive, if approved, gives new corporations that base themselves in North Dakota five years of exemption on corporate income taxes.

Property Tax:

All real property in North Dakota is subject to property tax, including mobile homes that serve a residential and commercial purpose.

There are also differentiations made for property that is agricultural in nature (farmland) and Native American tribal lands, with some exemptions instituted for those groups. Property taxes are assessed on a county to county basis, and bases on county rates.

Many corporations pay other taxes in lieu of property taxes, Cooperative-Owned transmission lines pay $225 per mile. Rural electric cooperatives pay a Gross Receipts Tax on all of their earnings, which is 1% for the first five years in existence, and then 2% for every year afterward.

Telecommunications companies pay a 2.5% Gross Receipts Tax for all property used in service of two way communications.

Personal property is exempt from property tax in North Dakota.

Sales Tax:

North Dakota uses a Gross Receipts Tax system in lieu of a sales tax, with the state rate being 5%. Gross Receipts Taxes tax the vendors of taxable products instead of the customers, though the vendors nearly always pass the tax on to the customer.

This rate can be increased on a county to county basis. Unprepared food and prescription drugs are exempt from sales tax.

North Dakota implements a 7% Gross Receipts Tax on all alcoholic purchases, either sold for on or off premises consumption. The tax on new farm machinery and irrigation equipment used for agriculture is 3%. The motor vehicle excise tax is 5%.

Introduction

Taxation is an integral part of a country's economics that helps in generating revenue for the government. The state levies different types of taxes, including income tax, sales tax, property tax, and others. North Dakota is one of the prime states in the United States of America known for its booming economy and vibrant culture. The state has gained immense popularity among tourists and entrepreneurs as it provides a conducive business environment, accompanied by a simple tax system. In this article, we will discuss the North Dakota tax system, the various taxes levied by the state, and their economic significance.

Overview of North Dakota Tax System

North Dakota tax system is a crucial contributor to the state's economy. The tax revenues generated by the state are used to fund various projects, including infrastructure development, education, healthcare, and public safety. According to the North Dakota Office of State Tax Commissioner, the state collected $3.97 billion in tax revenue in 2020.

The North Dakota tax system is relatively simple and straightforward compared to other states in the US. The state levies a personal income tax, sales tax, property tax, and excise taxes.

Personal Income Tax

The personal income tax is a tax levied on the income of individuals and businesses in the state. North Dakota's personal income tax rates ranging from 1.1% to 2.9% depending on the income of the individual or the business.

According to the North Dakota Office of State Tax Commissioner, the state has a tax bracket system where higher earners pay a higher tax rate. The tax rates are as follows:

- 1.1% on the first $26,400 of taxable income

- 2.04% on taxable income between $26,401 and $39,600
- 2.27% on taxable income between $39,601 and $52,800
- 2.64% on taxable income between $52,801 and $263,550
- 2.9% on taxable income over $263,550

Sales Tax

North Dakota imposes a statewide sales tax of 5% on the retail sale of tangible personal property and ed services. Localities in the state may impose an additional sales tax of between 1% and 3%. However, some items are exempted from sales tax, including food consumed at home, prescription drugs, and some medical devices.

According to the North Dakota Office of State Tax Commissioner, the state collected $1.39 billion in sales tax in 2020.

Property Tax

Property tax is a tax levied on the value of real estate owned by individuals or businesses. North Dakota levies property tax on land, buildings, and other permanent structures. Property tax rates vary, depending on the local jurisdiction's requirements and the value of the property.

According to the North Dakota Office of State Tax Commissioner, North Dakota collected $799.3 million in property taxes in 2020.

Excise Taxes

Excise taxes are taxes imposed on specific goods and services, such as cigarettes, alcohol, gasoline, and other fuels. North Dakota imposes an excise tax on motor fuel, cigarettes, gambling and alcoholic beverages.

The Economic Significance of the North Dakota Tax System

The North Dakota tax system has a profound impact on the state's economy. Tax revenues generated by the state are used to fund various projects such as infrastructure development, education, healthcare, and public safety.

Infrastructure Development

Good infrastructure is the foundation of a strong economy. North Dakota has a well-developed infrastructure that plays a vital role in attracting businesses and tourists to the state. The tax revenue collected from the state is used to fund infrastructure development projects such as highway construction and maintenance, bridges, and airports.

Education

Education is a critical factor that shapes a state's future economic prospects. North Dakota's tax revenue is used to fund education at all levels, starting from elementary to higher education. The state also offers several scholarships and grants to students to support their educational needs.

Healthcare

Access to quality healthcare is a crucial requirement for any thriving economy. The tax revenue collected by North Dakota is used to fund the state's healthcare system. The state works closely with healthcare providers to ensure that residents have access to affordable, quality healthcare services.

Public Safety

Maintaining public safety is an essential responsibility of the government. North Dakota's tax revenue is used to fund various public safety initiatives, including police and fire services, emergency response, and disaster management.

Conclusion

North Dakota's tax system is a crucial contributor to the state's economy. The state levies income tax, sales tax, property tax, and excise taxes. The tax revenue generated by the state is used to fund various projects, including infrastructure development, education, healthcare, and public safety. North Dakota's tax system is relatively simple, making it an attractive destination for businesses and tourists. The state's well-developed infrastructure, quality education, accessible healthcare, and public safety measures create an ideal environment for businesses to thrive, and residents to live a high quality of life.