What is North Dakota Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in North Dakota, you’ll likely need to file a North Dakota state income tax return along with your federal return. North Dakota uses a three-tier rate structure that includes a 0% bracket, so your filing status and taxable income affect how much state tax you owe.

This guide explains North Dakota’s 2025 income tax rates and brackets, how deductions work on Form ND-1, available subtractions and credits, and updates for the current tax year. When you’re ready to file, TaxAct® automatically applies North Dakota’s tax rules to help you accurately prepare your North Dakota return alongside your federal return.

What is the North Dakota state income tax?

North Dakota state income tax is a tax on income earned by individuals. It is collected by the North Dakota Office of State Tax Commissioner and helps fund state services.

For tax year 2025, North Dakota uses a three-tier rate structure with rates of 0%, 1.95%, and 2.50%, depending on filing status and North Dakota taxable income.

North Dakota income tax rates and tax brackets

North Dakota’s 2025 rate schedule includes a 0% bracket at lower income levels. Here are the 2025 North Dakota income tax brackets:

Tax Rate	Single Filers	Married Filing Separately	Married Filing Jointly / Surviving Spouse	Head of Household
0%	Up to $48,475	Up to $40,475	Up to $80,975	Up to $64,950
1.95%	$48,476-$244,825	$40,476-$149,025	$80,976-$298,075	$64,951-$271,450
2.50%	Over $244,825	Over $149,025	Over $298,075	Over $271,450

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See Form ND-1 tax tables and rate schedules for official computation details.

North Dakota standard deduction

North Dakota generally starts with your federal taxable income from Form 1040 (line 15) on Form ND-1 line 1b. Because North Dakota conforms to the federal computation of taxable income, your federal standard deduction or itemized deductions are already reflected in that starting amount.

After that starting point, North Dakota allows additional subtractions on Form ND-1 (such as Social Security benefits, military pay, and certain retirement income) before calculating North Dakota taxable income. North Dakota does not use a separate state standard deduction table like some other states.

Because North Dakota follows federal taxable income, your 2025 federal standard deduction amounts are:

Filing Status	2025 Federal Standard Deduction
Single	$15,000
Married Filing Jointly	$30,000
Married Filing Separately	$15,000
Head of Household	$22,500
Qualifying Surviving Spouse	$30,000

North Dakota exemptions, deductions, and credits

North Dakota allows Form ND-1 subtractions and credits that can reduce your tax. Common examples include:

Social Security benefits — Social security benefits are exempt from tax in North Dakota
Military pay and military retirement benefits — qualifying amounts may be excluded from North Dakota taxable income
Net long-term capital gain exclusion — up to 40% of eligible net long-term capital gains may be excluded
U.S. obligation interest and other subtractions on Form ND-1
Marriage penalty credit, credit for income tax paid to another state, and other credits on Schedule ND-1TC

For more North Dakota subtractions and credits, see the North Dakota Office of State Tax Commissioner.

North Dakota state income tax filing deadlines 2025

For tax year 2025, North Dakota individual income tax returns are generally due April 15, 2026, the same deadline as federal returns. A federal extension is generally accepted for North Dakota filing purposes (extended due date October 15, 2026 for calendar-year filers who qualify).

North Dakota tax changes for 2025

Income tax brackets: 2025 bracket thresholds were adjusted for inflation from 2024 levels under North Dakota’s three-bracket rate schedule (0%, 1.95%, and 2.50%).
Employer Child Care Contribution Income Tax Credit: A new credit allows qualifying employers to claim 50% of the first $1,000 of child care contributions per employee per year.
Federal conformity: North Dakota’s starting point for taxable income follows federal taxable income, so federal changes under the Working Families Tax Cut Act (One Big Beautiful Bill or OBBB) that affect Form 1040 taxable income also affect the North Dakota return.

FAQs

Does North Dakota have a state income tax?

Yes. North Dakota has a state income tax. For tax year 2025, rates are 0%, 1.95%, and 2.50%, with bracket thresholds that vary by filing status.

What is the North Dakota income tax rate?

North Dakota’s 2025 rates are 0%, 1.95%, and 2.50%. Many taxpayers owe no North Dakota income tax on lower amounts of taxable income because of the 0% bracket.

What are the North Dakota income tax brackets for 2025?

North Dakota has three rate tiers for 2025. For single filers, the 0% bracket applies up to $48,475, 1.95% applies from $48,476 to $244,825, and 2.50% applies over $244,825. Married filing jointly, married filing separately, and head of household filers use different thresholds. See the table above.

How does North Dakota state income tax work?

North Dakota generally starts with federal taxable income on Form ND-1, applies state subtractions, then calculates tax using North Dakota rate schedules or tax tables. Credits on Schedule ND-1TC may further reduce your tax.

Do I have to file a North Dakota state tax return?

You may need to file if you are a North Dakota resident, part-year resident, or nonresident required to file a federal return or with North Dakota-source income. Check Form ND-1 instructions for your situation.

What is the North Dakota standard deduction for 2025?

North Dakota does not have a separate state standard deduction table. The return generally starts with federal taxable income from Form 1040, which already reflects your federal standard deduction or itemized deductions.

How much is North Dakota state income tax?

There is no single North Dakota tax amount for everyone. Your state tax depends on North Dakota taxable income, filing status, subtractions, and credits. Many lower-income filers fall in the 0% bracket.

Why is my North Dakota tax return different from my federal return?

Your North Dakota return can differ from your federal return because North Dakota allows state-specific subtractions after federal taxable income, such as Social Security benefits, military pay, and a partial long-term capital gain exclusion. North Dakota also offers credits like the marriage penalty credit and credit for tax paid to another state. That means your North Dakota taxable income and final tax may be different from your federal amounts.

The good news is that our tax software automatically applies North Dakota’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information, visit the North Dakota Office of State Tax Commissioner. If you’d like to learn more about recent federal tax law changes, see our OBBB tax changes guide.

The bottom line

North Dakota’s 2025 income tax includes a 0% bracket and top marginal rates of 2.50%. Understanding your bracket, available subtractions, and credits can help you better estimate your North Dakota tax bill or refund.

When you’re ready to file, TaxAct can help you prepare your federal and North Dakota returns in one place so you can file with confidence.

Already filed your taxes and waiting for your refund? Learn more about where your North Dakota state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

North Dakota Office of State Tax Commissioner. “Individual Income Tax.” Accessed 21 Aug. 2026.
North Dakota Office of State Tax Commissioner. “2025 Form ND-1 Instruction Booklet.” Accessed 21 Aug. 2026.
North Dakota Office of State Tax Commissioner. “2025 North Dakota Tax Tables.” Accessed 21 Aug. 2026.