North Dakota State Income Tax in 2025: A Guide

North Dakota uses a graduated state income tax system, meaning your income is taxed at progressively higher rates as it increases. That said, North Dakota also has relatively low tax rates compared to other states. For the 2024 tax year (the taxes you’ll file in 2025), the tax rates range from 0% to 2.5%.   

Factors like your income level, residency status, and available deductions or credits all play a role in determining how much you owe. Whether you’re a full-time resident, a part-year resident, or someone earning income from North Dakota sources, learning these details is key to navigating your state return confidently. 

*Note that you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only.  

North Dakota state income tax rates

North Dakota’s state income tax system has three tax brackets, with rates ranging from 0% to 2.5% for the 2024 tax year. These brackets are designed to tax higher income levels at slightly higher rates, while lower-income earners benefit from a 0% tax bracket. 

State income tax returns for North Dakota are due on April 15, 2025, aligning with the federal tax filing deadline. 

In the following sections, we’ll break down North Dakota’s tax brackets and rates based on different filing statuses, giving you a clear picture of where you fit in. 

Use the tax rate schedule below to determine your tax based on your taxable income:

Filing status	Income range	Tax rate
Single	Up to $47,150	0%
	$47,151 to $238,200	1.95% of amount over $47,150
	More than $238,200	$3,725.48 + 2.5% of amount over $238,200
Married filing jointly and qualified surviving spouse	Up to $78,775	0%
	$78,776 to $289,975	1.95% of amount over $78,775
	More than $289,975	$4,118.40 + 2.5% of amount over $289,975
Married filing separately	Up to $39,375	0%
	$39,376 to $144,975	1.95% of amount over $39,375
	More than $144,975	$2,059.20 + 2.5% of amount over $144,975
Head of household	Up to $63,175	0%
	$63,176 to $264,100	1.95% of amount over $63,176
	More than $264,100	$3,918.04 + 2.5% of amount over $264,100

Source: North Dakota Income Tax Return and Booklet

Tax rate schedules? Tax tables? Don’t worry if this all seems confusing. TurboTax can help guide you through every step of the process.

Who has to file North Dakota state income tax?

You must file a North Dakota state income tax return if you’re a resident, part-year resident, nonresident, or Native American who meets the federal filing requirement and earns income from North Dakota sources. This includes wages, self-employment income, or other taxable earnings originating in the state. 

Military members follow the same rules based on their residency status and income earned in North Dakota.

How North Dakota residency impacts tax filing

North Dakota recognizes four residency statuses for tax purposes: resident, part-year resident, nonresident, and Native American. Each status determines how much of your income is subject to North Dakota state taxes and which forms you’ll need to file. 

The chart below breaks down each residency status, who qualifies, and how income is taxed in North Dakota. 

Residency status	Definition	How North Dakota taxes income
Resident	You lived in North Dakota for the entire tax year, met the statutory 7-month rule, or consider it your permanent home.	Taxes all income earned, both within and outside North Dakota.
Part-year resident	You moved into or out of North Dakota during the tax year.	Taxes income earned inside or outside the state while a resident and any North Dakota-sourced income while a nonresident.
Nonresident	You lived outside North Dakota (you didn’t live in the state for more than 7 months) but earned income from sources within the state.	Taxes only income from North Dakota sources.
Native American	Enrolled tribal members living and working on their tribe’s reservation.	Exempt from state taxes if income is earned on the reservation.

Other income tax considerations in North Dakota

In North Dakota, different types of income are taxed uniquely based on their source and classification. Below are key highlights for retirement income, investment income, Social Security benefits, and military pay: 

• Retirement income (pensions, annuities, IRAs): Income from 401(k), individual retirement accounts (IRAs), and most pensions are taxable in North Dakota. Certain public pensions may qualify for specific exclusions. 
• Exclusion for licensed peace officers: Beginning with tax year 2023, North Dakota offers a deduction for certain peace officer retirement benefits. Eligible individuals must have at least 20 years of combined service as a licensed peace officer and must be medically certified with a mental or physical disability that prevents them from performing their duties. 
• Investment income tax: Short-term capital gains are taxed as ordinary income under North Dakota’s income tax rates, ranging from 1.95% to 2.5%. Long-term gains may be eligible for a 40 percent exclusion of the gain from your North Dakota taxable income. 
• Social Security income tax: Since 2021, Social Security benefits are exempt from state taxation for all individuals, regardless of income level. 
• Active-duty military pay (residents): Residents serving elsewhere in the US military are taxed on all income, including military pay earned outside North Dakota. 
• Military retirement income: Military retirement pay is fully exempt from North Dakota state income tax. 
• Nonresident military personnel: Nonresidents stationed in North Dakota do not need to file a state return if their only income from North Dakota is military wages earned while stationed there.
  

Common North Dakota state tax credits

Below are key North Dakota-specific income tax deductions and credits, providing opportunities to reduce taxable income or offset the state income tax you owe. 

Tax credit	Description	Amount
Endowment Fund Contribution Credit	Credit for charitable contributions to a qualified endowment fund.	40% of contribution, up to $10,000 ($20,000 if married filing a joint return).
Family Member Care Tax Credit	Credit for qualified care expenses paid for a family member.	Up to 30% of expenses, max $2,000 per family member; $4,000 total.
Marriage Credit	Credit for married individuals filing jointly with income below certain thresholds.	Varies based on income level.
Nonprofit Private School Contribution Credit	Credit for contributions to nonprofit private schools.	Up to $2,500.
Adoption Tax Credit	Credit based on a percentage of the federal adoption credit claimed.	Up to 10% of federal adoption credit.
Homestead Property Tax Credit and Renter’s Refund	Property tax relief or partial refund of rent for seniors (65+) and disabled individuals.	Based on income and property value or rent expense.
Property Tax Credit for Disabled Veterans	Property tax reduction for disabled veterans.	Varies based on disability rating and income.

How to file North Dakota state income tax

Filing your North Dakota state income taxes doesn’t have to be stressful—and you don’t have to tackle it alone.  

Whether you prefer a DIY approach or want professional support, TurboTax is here to guide you every step of the way. Our platform is designed to help you confidently navigate your unique tax situation. With TurboTax, you’ll have the tools and expertise to uncover every deduction and credit you qualify for in North Dakota, from licensed peace officer income benefits to family care credits. Plus, our local tax experts are always ready to answer questions, offer guidance, or even file your taxes for you.