North Dakota 2023 State Income Tax Brackets
State income tax rates, brackets, and effective tax calculator
North Dakota 2023 Income Tax Brackets
Single Filers
| Rate | Income Over | Up To |
|---|---|---|
| 0% | $0 | $48,475 |
| 1.95% | $48,475 | $244,825 |
| 2.50% | $244,825 | No limit |
Standard deduction: $15,000
Married Filing Jointly
| Rate | Income Over | Up To |
|---|---|---|
| 0% | $0 | $80,975 |
| 1.95% | $80,975 | $298,075 |
| 2.50% | $298,075 | No limit |
Standard deduction: $30,000
Note: Most income exempt (0% up to ~$48K single). Very low effective rates overall. Uses federal standard deduction.
2023 Federal vs. North Dakota State Tax Rates
Federal top marginal rate
37%
North Dakota top marginal rate
2.50%
When combined with federal taxes, North Dakota residents in the highest bracket face a combined marginal rate of approximately 39.5% on their last dollar of income.
Effective North Dakota Tax Rates by Income
Your effective rate is the actual percentage of income paid in state taxes — always lower than the top marginal rate because lower brackets apply to lower portions of income.
| Income | Single — Tax Owed | Single — Effective Rate |
|---|---|---|
| $30,000 | $0 | 0.00% |
| $50,000 | $0 | 0.00% |
| $75,000 | $224.74 | 0.30% |
| $100,000 | $712.24 | 0.71% |
| $150,000 | $1,687.24 | 1.12% |
| $200,000 | $2,662.24 | 1.33% |
| $300,000 | $4,833.2 | 1.61% |
| $500,000 | $9,833.2 | 1.97% |
Estimates based on standard deduction. Does not include local income taxes, credits, or deductions beyond standard.
Key Tax Facts: North Dakota in 2023
Sales Tax Rate
5%
State rate (local taxes may add more)
Property Tax Rate
0.98%
Effective average rate on home value
Income Tax
Yes
Progressive brackets
Retirement Income
Exempt / Favorable
Most retirement income not taxed
Social Security
Not taxed
Social Security exempt from state tax
Estate / Inheritance Tax
No
No estate or inheritance tax
Other Tax Years
Federal Brackets by Filing Status (2023)
Other States — 2023 Tax Brackets
Frequently Asked Questions — North Dakota State Taxes
Does North Dakota have a state income tax?
Yes. North Dakota levies a state individual income tax in 2023. The rates and brackets shown above apply to residents filing as single or married filing jointly. Most income exempt (0% up to ~$48K single). Very low effective rates overall. Uses federal standard deduction.
How do North Dakota tax brackets work?
Like federal taxes, North Dakota uses a marginal (progressive) tax system. Only the income within each bracket is taxed at that rate — not all your income. For example, if North Dakota has a 5% top rate, you pay 5% only on income above the top bracket threshold, not on your entire salary.
What is the difference between marginal and effective tax rate in North Dakota?
Your marginal tax rate is the rate on your highest dollar of income. Your effective tax rate is your total state tax bill divided by your gross income — always lower than your marginal rate. For example, a worker at the top bracket in North Dakota may have a marginal rate of 2.5% but an effective rate several points lower due to income in lower brackets.
When were North Dakota's tax brackets last updated?
The brackets shown here reflect 2023 rates as enacted by North Dakotalegislation and published by the state Department of Revenue. CalcFi updates state tax data annually following each state's legislative session. Data sourced from official state tax agency publications and the Tax Foundation. Last updated: March 2025.