North Dakotaís low individual income tax rates are competitive with other states that levy an income tax. The rates -- ranging from 2.1 percent to 5.54 percent -- are applied to federal taxable income as adjusted by certain state adjustments.
The tax rates correspond to five income brackets. The income ranges for each bracket vary depending on the taxpayerís filing status (single, married filing jointly, head of household, qualifying widow or widower, and married filing separately). Each year the income brackets are indexed for inflation.
Every North Dakota resident who has a federal income tax filing requirement is required to file a North Dakota income tax return. Most individuals will simply take their federal taxable income and multiply it by the applicable tax rates. Tax tables are provided so that most taxpayers will not have to do calculations.
Office of State Tax Commissioner