NORTH DAKOTA PAYCHECK CALCULATOR
North Dakota taxes the first $48,475 a single filer earns at a flat 0%, and even above that the top rate tops out at just 2.5%, the lowest ceiling of any state that still runs a broad-based individual income tax. Most of the state’s revenue doesn’t come from wages at all: oil and gas extraction taxes from the Bakken region cover a huge share of the budget, which is exactly why lawmakers can afford to leave paychecks mostly alone. The Tax Foundation ranks North Dakota 11th out of 50 states on its 2026 State Tax Competitiveness Index, a genuinely strong showing.
A North Dakota paycheck has federal income tax, Social Security, and Medicare like anywhere else, plus a thin sliver of state income tax that barely registers for most earners, and no city or county income tax layered on top anywhere in the state. If you’re comparing offers or thinking about a move, check the Minnesota paycheck calculator for the state most Fargo-area commuters cross into, the South Dakota paycheck calculator for a neighboring state with no income tax at all, or the Montana paycheck calculator to see how the two-bracket system out west compares.
2026 North Dakota Paycheck Calculator 0% to 2.5% State Tax
Enter your pay details below to estimate your federal tax, North Dakota tax, FICA, and take-home pay.
Estimate only, based on 2026 federal tax brackets and standard deductions (IRS Rev. Proc. 2025-32), a 6.2% Social Security rate up to the $184,500 wage base, the 1.45%/2.35% Medicare rate, and North Dakota’s individual income tax brackets. North Dakota taxable income starts from federal taxable income (after the federal standard deduction), so no separate state standard deduction is applied. Bracket thresholds shown are the North Dakota Tax Commissioner’s confirmed 2025 figures; the Commissioner typically finalizes inflation-adjusted 2026 thresholds later in the year, so treat this as a close estimate until then. Does not include pre-tax deductions like a 401(k). Consult a tax professional for exact withholding.
Every Deduction on a North Dakota Paycheck
- Federal Income Tax: Withheld based on your W-4, taxable income, and filing status, using the 2026 federal brackets (10% to 37%).
- Social Security: A flat 6.2% of wages, up to the 2026 wage base of $184,500, capping the max employee contribution at $11,439.
- Medicare: 1.45% of all wages with no cap, plus an extra 0.9% on wages above $200,000 (single/HOH) or $250,000 (married filing jointly).
- North Dakota State Income Tax: Three rates, 0%, 1.95%, and 2.5%, applied directly to your federal taxable income. There’s no separate North Dakota standard deduction to subtract first, since the state simply starts from the number the IRS already calculated.
- Local Income Tax: None. No North Dakota city or county collects its own income tax, so Fargo, Bismarck, and Williston paychecks all follow the same state-only rule.
- Unemployment Insurance: Funded entirely by employers in North Dakota. Employees never see this as a payroll deduction.
North Dakota’s Income Tax Brackets by Filing Status
North Dakota simplified its individual income tax back in 2023, dropping a five-bracket system with a top rate above 5.5% down to just three brackets topping out at 2.5%. The lowest bracket is the real story: a large zero-rate band means a meaningful chunk of every taxpayer’s income owes nothing to the state at all, regardless of how high their total income eventually climbs.
| Rate | Single | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | $0 – $48,475 | $0 – $80,975 | $0 – $64,950 |
| 1.95% | $48,475 – $244,825 | $80,975 – $298,075 | $64,950 – $271,450 |
| 2.5% | $244,825+ | $298,075+ | $271,450+ |
Source: North Dakota Office of State Tax Commissioner, confirmed tax year 2025 rate schedule. These brackets apply directly to federal taxable income. The Commissioner typically finalizes inflation-adjusted thresholds for the following tax year later in the year, so double-check tax.nd.gov for any 2026 update before relying on exact cents.
Because the brackets apply to federal taxable income rather than a separate state figure, anything that lowers your federal taxable income, a bigger 401(k) contribution, itemizing instead of taking the standard deduction, automatically lowers your North Dakota bill too. That’s a simpler relationship than most states offer, where state and federal deductions can diverge in ways that require separate tracking.
North Dakota vs. Other States at $70,000 (Single Filer)
Here’s how a $70,000 salary breaks down for a single filer with no dependents in North Dakota compared to its closest neighbors. Federal tax ($6,570) and FICA ($5,355) are identical across all four states.
| State | State Income Tax | Estimated Net Pay |
|---|---|---|
| North Dakota | ~$106 | ~$57,969 |
| South Dakota | $0 (no income tax) | ~$58,075 |
| Montana | ~$2,679 (two-bracket, 4.7%/5.65%) | ~$55,396 |
| Minnesota | ~$3,237 (four-bracket, up to 9.85%) | ~$54,838 |
North Dakota and Montana figures use each state’s official 2025/2026 rate schedules; Montana’s 2026 top rate drops to 5.65% under a phased reduction. Minnesota figures use the Department of Revenue’s confirmed 2026 brackets and standard deduction.
South Dakota edges out North Dakota by exactly the size of North Dakota’s small state tax bill, about $106 a year at this income level, which tells you how little the income tax actually costs most North Dakota workers. Minnesota, right across the Red River from Fargo, charges over $3,000 more in state tax on the same salary, a gap that plenty of Fargo-Moorhead commuters factor into where they choose to live.
North Dakota’s Tax Trade-Offs, Honestly
| Tax Type | North Dakota | National Context |
|---|---|---|
| Top Individual Income Tax Rate | 2.5% | Lowest top rate among states with a broad income tax |
| Sales Tax | 5% state, ~6.89% combined average | Below the national population-weighted average of 7.53% |
| Effective Property Tax Rate | ~0.92% | Close to the national average, slightly above |
| Estate / Inheritance Tax | None | Most states have neither; a minority levy one or the other |
North Dakota doesn’t win every category outright. Its property tax rate sits a bit above the national average rather than dramatically below it, and its sales tax, while below average statewide, can climb with local add-ons in bigger cities like Fargo. What actually sets North Dakota apart is the income tax line, and by extension how the state funds itself in the first place: oil and gas extraction taxes from the Bakken formation shoulder a large share of the load that other states put on individual paychecks.
Bakken Oil Patch Workers and High Overtime Income
Western North Dakota’s oil fields, centered around Williston and the Bakken formation, pull in workers whose paychecks swing heavily on overtime, per diem, and seasonal drilling schedules. That income structure pairs unusually well with North Dakota’s tax setup. Because the state’s top rate caps at 2.5% and there’s no local income tax layered on top, a worker who doubles their income in a boom month doesn’t see anywhere near the tax hit they’d take in a state with a steep progressive bracket structure.
None of this erases federal tax or FICA, which apply the same way regardless of industry. But for a workforce known for volatile, overtime-heavy pay, North Dakota’s flat low ceiling on state tax removes one source of year-to-year unpredictability that workers in higher-tax states have to plan around.
2026 Federal Tax Brackets: A Worked Example
Federal tax applies the same way in North Dakota as anywhere else. Here’s the math for a single filer earning $70,000 in 2026, using the $16,100 standard deduction and the seven federal brackets from IRS Rev. Proc. 2025-32.
That same $53,900 of taxable income is also exactly what North Dakota’s brackets apply to. The first $48,475 falls in the 0% band, and only the remaining $5,425 gets taxed, at 1.95%, for a state bill of about $106. Add Social Security ($4,340) and Medicare ($1,015), and the full tax bill on that $70,000 salary lands around $12,031, an effective rate of roughly 17.2% before any pre-tax deductions like a 401(k).
Frequently Asked Questions
What is the North Dakota state income tax rate?
North Dakota uses a progressive three-bracket system with rates of 0%, 1.95%, and 2.5%. For single filers, the first $48,475 of North Dakota taxable income is taxed at 0%, the next portion up to $244,825 is taxed at 1.95%, and anything above that is taxed at 2.5%, the lowest top marginal rate of any state that levies a broad income tax.
Does North Dakota have its own standard deduction?
No. North Dakota is unusual in that it doesn’t set its own standard deduction. State taxable income starts from your federal taxable income, meaning the federal standard deduction (or your itemized deductions) already did the work before North Dakota’s rates ever apply.
Is Social Security income taxed in North Dakota?
No. North Dakota fully exempts Social Security benefits from state income tax, which makes the state notably retirement-friendly on top of its already low overall rates.
Does North Dakota have local or city income tax?
No. There is no county or municipal income tax anywhere in North Dakota. A paycheck only sees federal tax, North Dakota state tax, and FICA.
Why does North Dakota rank so well on tax competitiveness?
North Dakota ranks 11th overall on the Tax Foundation’s 2026 State Tax Competitiveness Index. A big reason is that oil and gas extraction taxes from the Bakken region cover a large share of state and local revenue, letting lawmakers keep individual income tax rates low without starving the budget.
Does North Dakota tax pension and retirement income?
Most retirement income flows through the same federal-taxable-income starting point as wages, so it’s taxed at North Dakota’s low 0% to 2.5% rates rather than exempted outright, except for Social Security benefits, which are fully exempt.
North Dakota’s tax code doesn’t ask much of most paychecks, and that’s by design more than accident: a state sitting on top of one of the country’s biggest oil plays simply doesn’t need individual income tax to carry the budget the way most states do. Anyone weighing a move here for the tax savings alone should still price in North Dakota’s winters and its distance from major metro areas, since neither of those shows up on a pay stub but both shape day-to-day life just as much as the withholding line does.