Calculate your take-home pay in The Peace Garden State. North Dakota income tax rate: 1.95%.
North Dakota has one of the lowest income tax rates in the nation at a flat 1.95%. The state conforms to the federal standard deduction. With such a low rate, the state tax impact on most paychecks is minimal.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| North Dakota State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
North Dakota has a progressive income tax with a top rate of 2.5%. This calculator estimates your take-home pay after federal income tax, state income tax, Social Security, Medicare, and any pre-tax deductions like 401(k) contributions. Enter your salary or hourly wage above to see a detailed breakdown of your paycheck.
North Dakota has one of the lowest income tax rates in the nation, with rates of 0% on the first $44,725 and just 2.5% above that (for single filers in 2026). Most North Dakota residents effectively pay very little state income tax. The state does not impose local income taxes. Combined with no state sales tax on most groceries and a low cost of living, North Dakota is one of the most tax-friendly states.
Regardless of state taxes, all North Dakota workers pay federal income tax using the 2026 brackets: 10% on the first $11,925 of taxable income (single), 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, and 37% on income above that. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026.
All workers in North Dakota pay Social Security tax at 6.2% on wages up to $176,100 (2026) and Medicare tax at 1.45% on all wages. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers. These federal payroll taxes apply uniformly regardless of which state you live in.
Pre-tax deductions reduce your taxable income for both federal and state purposes. Contributing to a 401(k) (up to $24,500 in 2026, plus $8,000 catch-up if 50+) lowers both your federal and ND state tax bill. Health Savings Account (HSA) contributions ($4,300 individual, $8,550 family in 2026) are also pre-tax. Review your W-4 withholding: if you receive a large refund each year, you may be overwithholding, which means less money in each paycheck. The Tax Bracket Calculator shows your federal marginal and effective rates.
North Dakota's flat 1.95% income tax is the lowest rate of any state that collects income tax. Combined with no local income taxes and a below-average cost of living, North Dakota offers take-home pay that's almost indistinguishable from no-tax states. The energy sector (oil and gas in the Bakken formation) drives much of the state's economy.
At $75,000, North Dakota's 1.95% flat rate costs about $1,050 in state income tax, roughly $130 more than paying zero in neighboring no-tax states. For most workers, that minimal difference is far outweighed by job availability, family ties, or cost of living considerations.