North Dakota tax burden — broken down.
North Dakota’s combined tax burden (income + property + sales) lands at 8.48% on our composite — ranking #38 of 51 jurisdictions. The top marginal individual income tax rate is 2.50%.
North Dakota burden, broken into 3 components
| Component | North Dakota rate | National median |
|---|---|---|
| Top marginal income | 2.50% | ~5.30% |
| Effective property | 0.98% | ~1.07% |
| State sales tax | 5.00% | ~5.50% |
| Combined composite | 8.48% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in North Dakota
North Dakota does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by North Dakota. Federal taxation of these income sources is unchanged regardless of state.
How North Dakota compares
Of all 51 US jurisdictions ranked by combined burden composite, North Dakota sits at #38. That places North Dakota in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
North Dakota metros — local tax overlay
State rates are uniform across North Dakota— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
More North Dakota metros coming as we expand city coverage.
North Dakota tax — common questions
What is the North Dakota top marginal income tax rate in 2025?
North Dakota's top marginal individual income tax rate is 2.50% on the highest bracket.
What is the North Dakota effective property tax rate?
North Dakota's statewide effective property tax rate is 0.98% of home value (annual). On a $400,000 home that's roughly $3,920/yr. Local variation can be ±0.5pp.
Does North Dakota tax retirement income or Social Security?
North Dakota does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any North Dakota-specific tax quirks I should know about?
ND offers a Bakken-shale royalty exclusion for residents; oil-extraction tax revenue funds Legacy Fund (~$10B+) which generates state revenue and may eventually fund tax cuts.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.