North Dakota uses a three-tier income tax with a zero-percent bracket for TY2026. Single filers owe no North Dakota income tax on the first $48,475 of taxable income - meaning most North Dakota residents owe $0 in state income tax after taking the $16,100 standard deduction. Income above $48,475 (single) is taxed at 1.95%, with a top rate of 2.50% applying only to income above $244,825. North Dakota conforms to the federal standard deduction ($16,100 single / $32,200 MFJ). Social Security benefits are exempt. No local income taxes apply.
Zero-Rate Bracket (Single)
0% on first $48,475
Top Income Tax Rate
2.50% (above $244,825)
Standard Deduction (Single)
$16,100 (federal)
Social Security Tax
Exempt
North Dakota Income Tax Brackets 2026
North Dakota restructured its income tax effective TY2026 to include a zero-percent bracket, session-confirmed thresholds below:
The zero bracket means a single filer with up to $48,475 in taxable income owes $0 in North Dakota income tax. After taking the $16,100 standard deduction, a single filer would need more than $64,575 in gross income before owing any North Dakota state income tax.
North Dakota Standard Deduction 2026
North Dakota conforms to the federal standard deduction. For TY2026 (per Rev. Proc. 2025-32):
Filing Status
Standard Deduction
Single
$16,100
Married Filing Jointly
$32,200
Married Filing Separately
$16,100
Head of Household
$24,150
Because North Dakota conforms to the federal standard deduction, the deduction directly offsets the zero bracket: most standard-deduction filers with moderate income will find their taxable income falls entirely within the zero-rate bracket, resulting in no North Dakota state income tax owed.
North Dakota OBBBA Conformity - Status Pending
North Dakota's conformity to the OBBBA tips deduction, overtime deduction, and senior bonus deduction has not yet been confirmed in published guidance from the North Dakota Office of State Tax Commissioner as of the last update to this page. Given North Dakota's zero-rate bracket - which already eliminates state income tax for most earners - the impact of OBBBA conformity on North Dakota tax liability would be minimal for many filers. Verify the current conformity status at www.tax.nd.gov.
What are North Dakota's income tax rates for 2026?
North Dakota uses a three-tier income tax for TY2026, with the most notable feature being a zero-percent bracket on the first $48,475 of taxable income for single filers ($63,475 for MFJ). Above those thresholds, income is taxed at 1.95% up to $244,825 (single) / $298,075 (MFJ), and then at 2.50% on income above those limits. Because the zero bracket is set well above what many North Dakota residents earn - especially after claiming the federal standard deduction - a large share of North Dakota filers owe $0 in state income tax.
What income level does a North Dakota single filer need to reach before paying any state income tax?
A North Dakota single filer must have taxable income exceeding $48,475 before owing any North Dakota state income tax. Taxable income is income after deductions: a single filer taking the $16,100 standard deduction (TY2026) would need more than $64,575 in gross income before the first dollar of state income tax applies. For many North Dakota residents, the combination of the zero bracket and the standard deduction results in a $0 state income tax bill.
What standard deduction does North Dakota use for 2026?
North Dakota conforms to the federal standard deduction. For TY2026, the standard deduction is $16,100 for single filers and $32,200 for married filing jointly (per Rev. Proc. 2025-32). North Dakota filers who take the standard deduction use the same amount as on their federal return. Because ND starts taxable income computation from federal AGI less the standard deduction, the federal deduction directly affects how much North Dakota income falls into the zero bracket versus the 1.95% bracket.
Does North Dakota conform to the OBBBA tips and overtime deductions?
North Dakota's conformity to the OBBBA tips deduction, overtime deduction, and senior bonus deduction is not yet confirmed in published guidance from the North Dakota Office of State Tax Commissioner as of the last update to this page. North Dakota generally conforms to the Internal Revenue Code for many purposes but can decouple from specific provisions. Given North Dakota's near-zero effective tax rate for most earners, the impact of state-level non-conformity would be limited for most filers. Verify the current conformity status at www.tax.nd.gov before filing or adjusting withholding.
Does North Dakota tax Social Security or retirement income?
Social Security benefits are not taxed in North Dakota. Most other retirement income - including pension distributions, 401(k) withdrawals, and IRA distributions - is subject to North Dakota income tax at the graduated rates (0% / 1.95% / 2.50%). Because most retirement income combined with the zero bracket and standard deduction keeps many retirees' taxable income below $48,475 (single) or $63,475 (MFJ), the effective North Dakota tax on retirement income is often very low or zero. Some additional exclusions may apply - verify for TY2026 with North Dakota Office of State Tax Commissioner guidance.
How does North Dakota's 2.5% top rate compare to other states?
North Dakota's top income tax rate of 2.50% is one of the lowest top marginal rates among states that do impose an income tax. Only a handful of states with income taxes have top rates below 3%. Furthermore, the 2.50% rate applies only to taxable income above $244,825 (single) / $298,075 (MFJ) - the vast majority of North Dakota residents never reach this bracket. The combination of the zero bracket, the low rates, and the high thresholds makes North Dakota's effective state income tax burden among the very lowest in the nation for states with any income tax.
We use cookies for analytics (Google Analytics 4) and advertising (Google AdSense). Your calculator inputs never leave your browser.Learn more
