North Dakota Income Tax Rates, Brackets, and Calculator for 2026
North Dakota has three income tax brackets with income tax rates from 0% to 2.5% for 2026. Compare ND state tax at $75,000, $100,000, and other income levels. See how filing status changes the results and where North Dakota ranks among states.
North Dakota has three individual income tax brackets with rates of 0%, 1.95%, and 2.5% for 2026. The first $49,575 of taxable income for Single filers and $82,800 for Married Filing Jointly is taxed at 0%. These thresholds apply after deductions, so a worker's household income can be higher before state income tax begins. The 2026 tax year covers income earned from January 1, 2026 through December 31, 2026. For calendar-year filers, federal Form 1040 series returns and North Dakota Form ND-1 returns are generally due April 15, 2027.
North Dakota introduced its current three-bracket structure in 2023, replacing five brackets and reducing the top rate from 2.9% to 2.5%. The rates remain unchanged for 2026, while the income thresholds increase through annual inflation adjustments. The state starts with federal taxable income, which already reflects the federal standard deduction or itemized deductions. Eligible married couples can also claim a Marriage Penalty Tax Credit. That credit nearly eliminates the additional joint tax in our example of two spouses earning $75,000 each.
Tax Calculator
North Dakota Income Tax Calculator for 2026
Enter annual household income and select a filing status to estimate North Dakota income tax for 2026. Results open in our All 50 States income tax calculator with North Dakota highlighted. The examples below provide a starting point, showing North Dakota income tax for a Single filer earning $50,000 to $150,000 annually. The $50,000 example owes no state income tax, while the other examples reach the 1.95% bracket. The effective tax rate rises as more income extends beyond the standard deduction and 0% bracket.
How Much Will You Pay in North Dakota?
| Household Income | State Tax | Marginal Rate | Effective Rate | State Rank |
|---|---|---|---|---|
| $50,000 | $0 | 0% | 0.00% | 1 |
| $75,000 | $182 | 1.95% | 0.24% | 10 |
| $100,000 | $669 | 1.95% | 0.67% | 10 |
| $125,000 | $1,157 | 1.95% | 0.93% | 10 |
| $150,000 | $1,644 | 1.95% | 1.10% | 10 |
2026 North Dakota State Tax: Single filer, full-year resident, wages only, no dependents, and under age 65. Includes the $16,100 federal standard deduction, with no other adjustments or tax credits. Federal, payroll, and local taxes are excluded.
2026 North Dakota State Rank: North Dakota ranks in the low income tax range nationally at $75,000 through $150,000 of Single income, placing 10th at each level. At $50,000, it ties for first with a 0% effective rate. The comparison includes all 50 states and the District of Columbia at the same income and filing status, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. See the All 50 States income tax calculator for assumptions and sources.
Key takeaway: At $100,000 of annual income, a Single filer pays an estimated $669 in North Dakota state income tax for 2026. The marginal tax rate is 1.95%, while the effective rate is 0.67% after the standard deduction and 0% bracket are applied.
Tax Rates
North Dakota Income Tax Rates
North Dakota's three individual income tax rates are 0%, 1.95%, and 2.5% for 2026. Each filing status has its own bracket thresholds. The Married Filing Jointly thresholds are wider than the Single thresholds, but they are less than twice as wide. Each rate applies only to the portion of taxable income within its bracket. Reaching a higher bracket does not cause all income to be taxed at the higher rate.
2026 North Dakota Income Tax Brackets
| Bracket | Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|---|
| 1 | 0% | $0 - $49,575 | $0 - $82,800 | $0 - $41,400 | $0 - $66,400 |
| 2 | 1.95% | $49,576 - $250,400 | $82,801 - $304,850 | $41,401 - $152,425 | $66,401 - $277,600 |
| 3 | 2.5% | $250,401+ | $304,851+ | $152,426+ | $277,601+ |
North Dakota adjusts its bracket thresholds annually for inflation. The 0% bracket increased from $48,475 to $49,575 for Single and from $80,975 to $82,800 for Married Filing Jointly between 2025 and 2026. These changes allow more taxable income to remain in the 0% bracket without changing the rate percentages. With the 2026 federal standard deduction, a Single wage earner can have $65,675 of household income before reaching the 1.95% bracket under our assumptions. For a married household, the corresponding amount is $115,000 before considering the Marriage Penalty Tax Credit.
Compare States
Compare North Dakota to Other States
The next table compares North Dakota with its three neighboring states, plus Wyoming, Iowa, Nebraska, and Wisconsin, at $75,000 of annual income for a Single filer. The calculations use the same household assumptions and apply each state's deductions, exemptions, and credits. States appear from lowest to highest state income tax, with the difference measured against North Dakota. The marginal rate identifies the tax bracket reached, while the effective rate is state income tax divided by $75,000 of household income, expressed as a percentage.
North Dakota vs Other States at $75,000 of Income (2026)
| State Name | State Rank | Tax on $75K Income | Difference | Marginal Rate | Effective Rate |
|---|---|---|---|---|---|
| South Dakota | 1 | $0 | −$182 | 0% | 0.00% |
| Wyoming | 1 | $0 | −$182 | 0% | 0.00% |
| North Dakota | 10 | $182 | $0 | 1.95% | 0.24% |
| Iowa | 16 | $2,198 | +$2,016 | 3.8% | 2.93% |
| Nebraska | 24 | $2,533 | +$2,351 | 4.55% | 3.38% |
| Montana | 33 | $2,877 | +$2,695 | 5.65% | 3.84% |
| Wisconsin | 35 | $2,944 | +$2,762 | 5.3% | 3.92% |
| Minnesota | 48 | $3,577 | +$3,395 | 6.8% | 4.77% |
2026 State Income Tax Comparison: Single filer, full-year resident, wages only, no dependents, and under age 65. A negative difference means less state income tax than North Dakota. Differences are calculated before rounding to whole dollars. South Dakota and Wyoming do not tax wage income. Federal, payroll, property, sales, and local taxes are excluded.
2026 State Rank: Compares all 50 states and the District of Columbia at $75,000 of income for a Single filer, with 1 representing the lowest effective rate. Rankings use unrounded figures. Equal rates share a rank. The figures follow the state income tax calculator, including its disclosed prior-year inputs where final 2026 amounts are unavailable.
Key takeaway: At $75,000 of annual income, North Dakota has lower state income tax than every other state with income tax shown here. Its estimated $182 tax is about $3,395 less than Minnesota and $2,695 less than Montana. South Dakota and Wyoming are lower by about $182 because they have no state tax on these wages. For people who live and work on opposite sides of a state border, the reciprocity rules for Minnesota and Montana can determine which state taxes their wages.
Examples
North Dakota Income Tax Calculation Examples
The goal of these examples is to compare Single and Married Filing Jointly statuses at the same $75,000 annual income per person. The Single example uses $75,000 of household income, while the married example assumes each spouse earns $75,000, for a combined $150,000. The married couple files jointly for both federal and North Dakota taxes. The results match our 2026 income tax calculator using those amounts and the corresponding filing status.
To simplify the calculations, both examples assume full-year North Dakota residency, W-2 wages only, no dependents, and taxpayers under age 65 who are not blind or claimed as dependents. North Dakota starts with federal taxable income and then applies state additions and subtractions when required. Here, federal taxable income equals household wages minus the federal standard deduction. The joint example includes the Marriage Penalty Tax Credit, with no other deductions, adjustments, or tax credits in either example.
North Dakota Filing Status Comparison (2026 Tax Year)
| Tax Metric | Single | Married Filing Jointly |
|---|---|---|
| Household Income | $75,000 | $150,000 |
| Federal Standard Deduction | $16,100 | $32,200 |
| Taxable Income | $58,900 | $117,800 |
| Tax Before Credits | $182 | $683 |
| Marriage Penalty Tax Credit | $0 | $312 |
| State Income Tax | $182 | $371 |
| Effective Tax Rate | 0.24% | 0.25% |
| Marginal Tax Rate | 1.95% | 1.95% |
The brackets come from North Dakota's 2026 estimated tax instructions, and the standard deductions come from the IRS's published 2026 amounts. The marriage credit calculation follows state law, using the 2026 standard deduction and brackets. The calculator retains the official 2025 credit eligibility thresholds and $312 maximum without projecting an inflation increase. Those credit amounts remain subject to confirmation in the final 2026 return instructions. These examples apply the bracket rates directly and carry unrounded tax through the calculation, so the results may differ slightly from return tables and whole-dollar filing calculations.
Looking at the table above, both examples reach the same 1.95% marginal tax rate, but the married household pays a slightly higher effective rate. The joint standard deduction doubles, while the joint 0% bracket is $16,350 less than twice the Single bracket. Before the credit, that difference produces about $318.83 more tax than two Single filers would pay. The $312 credit reduces the remaining North Dakota marriage penalty to about $6.83 under these assumptions.
The Marriage Penalty Tax Credit compares the joint tax with two hypothetical calculations using the Single brackets. It does not mean the spouses file separate returns or use Married Filing Separately brackets. Each spouse's qualified income matters, so a different wage split can change the credit. Next, we will review the step-by-step calculations for each filing status.
Step-by-Step Example 1: Single
For a Single filer with $75,000 of household income, we first subtract the $16,100 federal standard deduction. This leaves $58,900 of North Dakota taxable income. Only the amount above the $49,575 first bracket is taxed at 1.95%.
- North Dakota taxable income: Subtract the federal standard deduction from household income. $75,000 − $16,100 = $58,900
- Tax on the first bracket: The first $49,575 of taxable income is taxed at 0%. $49,575 × 0% = $0
- Tax on the second bracket: Subtract $49,575 from $58,900, leaving $9,325 taxed at 1.95%. $9,325 × 0.0195 = $181.8375
- Estimated North Dakota income tax: Add the tax from both brackets, then round to cents. $0 + $181.8375 = $181.84, rounded
North Dakota effective tax rate: $181.84 divided by $75,000 of household income equals 0.24%, rounded. The estimated state income tax rounds to $182 in the comparison table.
North Dakota marginal tax rate: 1.95%, the rate applied to the next dollar of North Dakota taxable income within the second bracket. The first $49,575 remains taxed at 0%.
Step-by-Step Example 2: Married Filing Jointly
Now let's apply the calculation to a married couple with each spouse earning $75,000, for a combined household income of $150,000. We subtract the $32,200 joint federal standard deduction and apply the joint North Dakota brackets. Then we calculate the Marriage Penalty Tax Credit using the Single brackets for comparison and the retained $312 maximum.
- North Dakota taxable income: Subtract the joint federal standard deduction from household income. $150,000 − $32,200 = $117,800
- Tax on the first bracket: The first $82,800 of joint taxable income is taxed at 0%. $82,800 × 0% = $0
- Tax on the second bracket: Subtract $82,800 from $117,800, leaving $35,000 taxed at 1.95%. $35,000 × 0.0195 = $682.50
- Tax before credits: Add the tax from both brackets. $0 + $682.50 = $682.50
- Income for the credit comparison: Both spouses earn $75,000. Subtract half the joint standard deduction from one spouse's wages, then subtract that result from joint taxable income. $75,000 − $16,100 = $58,900 $117,800 − $58,900 = $58,900
- Tax using the Single brackets: Each $58,900 amount produces the same tax as Example 1. Add the two amounts before rounding. $181.8375 × 2 = $363.675
- Marriage Penalty Tax Credit: Subtract the combined Single tax from the joint tax. The difference exceeds the retained $312 maximum, so the credit is $312. $682.50 − $363.675 = $318.825
- Estimated North Dakota income tax: Subtract the credit from tax before credits. $682.50 − $312 = $370.50
North Dakota effective tax rate: $370.50 divided by $150,000 of household income equals 0.25%, rounded. The estimated state income tax rounds to $371 in the comparison table.
North Dakota marginal tax rate: 1.95%, the statutory rate applied to the next dollar of North Dakota taxable income within the second bracket. The Marriage Penalty Tax Credit reduces tax owed without changing the bracket reached. The credit is already at the maximum used in this example.
Takeaway
North Dakota Income Tax Takeaways
Higher rates apply only within the higher bracket: North Dakota's 1.95% rate begins above $49,575 of taxable income for Single and $82,800 for Married Filing Jointly in 2026. Income below those thresholds is taxed at 0%. Our $75,000 Single and $150,000 joint examples reach the second bracket, so neither pays the 2.5% top rate.
The effective rate is below the bracket rate: The Single example pays just 0.24% of household income in state tax despite reaching the 1.95% bracket. The standard deduction removes $16,100 from taxable income, and the next $49,575 is taxed at 0%. Together, those provisions leave only $9,325 of the $75,000 wage income subject to the 1.95% rate.
The Marriage Penalty Tax Credit can reduce the additional joint tax: The married household pays $682.50 before credits and $370.50 after the $312 credit used here. That leaves about $6.83 more tax than two Single filers earning $75,000 each. This example already reaches the credit maximum, so any larger marriage penalty at higher incomes would not receive an additional offset. The wage split also affects the result, so the credit does not guarantee that every marriage penalty disappears.
North Dakota ranks low nationally: At $75,000 of Single income, North Dakota ranks 10th among all 50 states and DC, immediately after the nine states with no tax on wages. Its estimated $182 tax is about $3,395 less than Minnesota and $2,695 less than Montana under the same assumptions. The $50,000 Single example owes no state income tax and shares the lowest rank.
FAQ
North Dakota Income Tax Questions and Answers
What are the North Dakota income tax rates for 2026?
North Dakota has three individual income tax rates for 2026: 0%, 1.95%, and 2.5%. The state uses progressive brackets, so each rate applies only to the portion of taxable income within its bracket. The top 2.5% rate begins above $250,400 for Single, $304,850 for Married Filing Jointly and Qualifying Surviving Spouse, $152,425 for Married Filing Separately, and $277,600 for Head of Household.
How much is North Dakota income tax on $75,000?
A Single filer earning $75,000 pays an estimated $182 in North Dakota state income tax for 2026 under our wage-only assumptions. After the $16,100 federal standard deduction, taxable income is $58,900. The first $49,575 is taxed at 0%, and the remaining $9,325 is taxed at 1.95%. The effective tax rate is 0.24% of household income, with no dependents, other adjustments, or tax credits.
How much is North Dakota income tax on $100,000?
A Single filer earning $100,000 pays an estimated $669 in North Dakota state income tax for 2026 under our wage-only assumptions. Subtracting the $16,100 federal standard deduction leaves $83,900 of taxable income. Of that amount, $49,575 is taxed at 0% and $34,325 is taxed at 1.95%. The effective tax rate is 0.67%, with no dependents, other adjustments, or tax credits.
How much income can you earn before paying North Dakota income tax?
Under our 2026 wage-only assumptions, a Single filer can earn $65,675 before the bracket calculation produces North Dakota income tax. That combines the $16,100 federal standard deduction and the $49,575 0% bracket. For Married Filing Jointly, the corresponding amount is $115,000, combining the $32,200 deduction and $82,800 0% bracket. Eligible couples may owe no tax at higher incomes after the Marriage Penalty Tax Credit. These amounts are tax calculation thresholds, not exemptions from filing a return.
What is the North Dakota marginal tax rate?
North Dakota's marginal income tax rate is 0%, 1.95%, or 2.5%, depending on taxable income and filing status. Each bracket rate applies only to the dollars of taxable income within that bracket. For 2026, a Single filer reaches the 1.95% bracket above $49,575 and the 2.5% bracket above $250,400 of taxable income. The corresponding Married Filing Jointly thresholds are $82,800 and $304,850.
What is the North Dakota effective tax rate?
The effective tax rate is North Dakota income tax after credits divided by household income, expressed as a percentage. In our 2026 examples, a Single filer earning $75,000 has a 0.24% effective rate, while a married couple earning $150,000 has a 0.25% effective rate after the Marriage Penalty Tax Credit. Both reach the 1.95% marginal bracket. Deductions, the 0% bracket, and applicable credits explain why the effective rates are lower.
Does North Dakota have a standard deduction?
Yes. North Dakota uses federal taxable income as its starting point, so the federal standard deduction reduces the income subject to state tax. For 2026, the federal amounts are $16,100 for Single and Married Filing Separately, $32,200 for Married Filing Jointly and Qualifying Surviving Spouse, and $24,150 for Head of Household. Taxpayers who itemize instead generally carry their federal itemized deductions into that starting figure.
The additional federal standard deduction for age 65 or blindness is $2,050 for Single or Head of Household and $1,650 for each eligible married taxpayer or Qualifying Surviving Spouse in 2026. Each qualifying condition adds an amount, so someone who is both age 65 or older and blind can qualify for two additions.
Does North Dakota have a personal exemption?
No. North Dakota follows federal taxable income, which does not include a personal exemption deduction for 2026. The state also does not provide a separate personal exemption deduction.
Does North Dakota have a dependent exemption?
No. North Dakota does not provide a dependent exemption deduction for 2026.
Does North Dakota offer an Earned Income Tax Credit?
No. North Dakota does not offer a state Earned Income Tax Credit for 2026. Eligible workers may still claim the federal Earned Income Tax Credit on their federal income tax return.
Does North Dakota have a Child Tax Credit?
No. North Dakota does not offer a state Child Tax Credit for 2026. Eligible families may still qualify for the federal Child Tax Credit on their federal income tax return. North Dakota has separate benefits for specific circumstances, such as qualifying adoption expenses.
Does North Dakota have a marriage penalty?
It can. North Dakota's joint brackets are less than twice as wide as the Single brackets, which can produce more tax for a married couple than for two Single filers with the same combined income. The Marriage Penalty Tax Credit reduces that difference for eligible couples. In our equal-wage comparison, the joint household pays $370.50 after the credit, about $6.83 more than two Single filers earning $75,000 each. This example uses the published 2025 credit maximum of $312 pending final 2026 guidance.
How does the North Dakota Marriage Penalty Tax Credit work?
The credit compares a married couple's joint tax with two hypothetical tax amounts calculated using the Single brackets. It uses the lower-earning spouse's qualified income, reduced by specified federal allowances, and the remaining joint taxable income. The eligible difference is limited by an annual maximum. Couples still file a joint return, and the credit cannot reduce their tax below zero.
The 2025 instructions require joint North Dakota taxable income above $81,036 and qualified income above $47,550 for the spouse with the lower amount, with a maximum credit of $312. Qualified income includes wages and certain self-employment and retirement income. Our 2026 estimates retain those published eligibility thresholds and the maximum, while using the 2026 standard deduction and brackets in the calculation. The state adjusts credit amounts for inflation, so the final 2026 instructions may change the eligibility thresholds and maximum credit used in these estimates.
Does North Dakota have tax reciprocity with Minnesota and Montana?
Yes. North Dakota has income tax reciprocity agreements with Minnesota and Montana. When the agreement's conditions are met, wages earned across the border are taxed by the worker's state of residence rather than the state where the work is performed. For Minnesota reciprocity, the worker must maintain a permanent home in the resident state and return to it at least once each month.
Eligible Minnesota and Montana residents working in North Dakota can give their employer Form NDW-R to request exemption from North Dakota withholding. North Dakota residents working in Minnesota or Montana use the corresponding form from that state. Reciprocity generally does not cover other income, such as rent or business income.
References:
- 2026 Form ND-1ES: Estimated Income Tax for Individuals (PDF). North Dakota Office of State Tax Commissioner, December 2025. Supplies the 2026 bracket schedules for all four filing statuses, the federal taxable income starting point, and the April 15, 2027 return due date. Directs taxpayers to the 2025 instructions for credits. Retrieved October 10, 2026.
- North Dakota Century Code, Chapter 57-38: Income Tax (PDF). North Dakota Legislative Branch. Section 57-38-30.3 establishes the rates, inflation adjustments, taxable income rules, and filing status conformity. Section 57-38-01.28 governs the marriage credit formula and indexed maximum. Retrieved October 10, 2026.
- 2025 Individual Income Tax Booklet (PDF). North Dakota Office of State Tax Commissioner. The Marriage Penalty Credit Worksheet on printed page 14 supplies the retained $312 maximum and eligibility thresholds. Also supports the 2025 bracket comparison, federal conformity, and reciprocity rules. These prior-year credit amounts remain provisional for the 2026 estimates. Retrieved October 10, 2026.
- Marriage Penalty Tax Credit. North Dakota Office of State Tax Commissioner. Explains qualified income, joint filing requirements, annual inflation adjustments, and where to claim the credit. Retrieved October 10, 2026.
- Signing of the 2023 Tax Relief Package. North Dakota Office of State Tax Commissioner, April 28, 2023. Explains House Bill 1158's replacement of five brackets with the 0%, 1.95%, and 2.5% structure. Retrieved October 10, 2026.
- Revenue Procedure 2025-32: Tax Inflation Adjustments for 2026. Internal Revenue Service. Section 4.14 supplies the standard deductions and additional amounts for age or blindness. Federal law retains a zero personal exemption amount. Retrieved October 10, 2026.
- Individual Income Tax. North Dakota Office of State Tax Commissioner. Lists filing requirements and available individual tax credits. The rate table on this page is for 2025, so the separate 2026 ND-1ES schedule controls this article's brackets. Retrieved October 10, 2026.
- Resident: Working in Another State and Nonresident: Living in Minnesota or Montana. North Dakota Office of State Tax Commissioner. Explains reciprocity and withholding forms for workers crossing the Minnesota or Montana border. The annual booklet supplies the monthly home-return condition for Minnesota. Retrieved October 10, 2026.