North Dakota income tax rates and brackets for 2025 and 2026

A 2023 law (HB 1158) replaced five brackets with three: 0%, 1.95% and 2.5%. The brackets rise with inflation every year, so the amounts printed in the statute are out of date; the Tax Department publishes the current ones. The 2026 amounts below come from the 2026 estimated-tax form, because the 2026 return booklet is not out yet.

Form ND-1 starts from federal taxable income (line 15 of Form 1040), so your federal standard or itemized deduction is already taken off; North Dakota has no separate deduction or exemption. It then subtracts North Dakota items, including 40% of net long-term capital gains and qualified dividends, interest on U.S. obligations, all military pay, and College SAVE contributions up to $5,000 ($10,000 joint).

For example, a single filer with $60,000 of wages has $44,250 of federal taxable income for 2025, which is inside the 0% bracket, so North Dakota tax is $0. With $100,000 of wages, federal taxable income is $84,250 and North Dakota tax is about $698 for 2025, or about $669 for 2026.

North Dakota says its starting point “perpetually conforms” to federal taxable income, and its 2025 booklet lists the larger federal standard deduction, the extra $6,000 for some seniors and the tip and overtime deductions among the changes that carry over. The car loan interest deduction also reduces federal taxable income, so as we read the forms it carries over too; North Dakota has no add-back for any of them. The 2027 Legislature meets before 2026 returns are due and could change this for 2026.

No for Social Security: since 2021 the taxable part of your benefits is subtracted on the ND-1, with no income limit. Military retirement pay (since 2019), Railroad Retirement benefits and retirement pay for licensed peace officers with 20 years of service or a disability retirement are also subtracted.

Other pensions, 401(k) and IRA distributions are taxed for residents; there is no general pension exclusion. Nonresidents do not owe North Dakota tax on pensions or annuities.

We found no earned income credit on the North Dakota return. Some of the best-known North Dakota relief programs are property tax credits, applied for separately rather than on the income tax return.

You file if you must file a federal return and are a North Dakota resident, or have North Dakota income as a part-year resident or nonresident. Full-year residents with no North Dakota adjustments or credits can use Form ND-EZ; everyone else uses Form ND-1, with Schedule ND-1NR for part-year residents and nonresidents. Free File is available through the Tax Department’s TAP site.

Returns are due April 15, so 2026 returns are due April 15, 2027. A federal extension is accepted automatically; just fill in the extension circle on the return. Without one you need Form 101 and good cause. Tax paid after April 15 on an extended return carries 12% annual interest.

Check a North Dakota refund with “Where’s My Refund” on the Tax Department’s TAP site. It asks for the tax year, your Social Security number, filing type (with your spouse’s information for a joint return) and the expected refund amount from line 32 of Form ND-1 or line 6 of ND-EZ.

The 2025 booklet says refunds on e-filed returns are generally issued within 7 business days and paper returns can take up to 6 weeks; the Tax Department’s website says to expect about 30 days. The individual income tax line is 701-328-1247.

You are a North Dakota resident if it is your domicile. You are also taxed as a full-year resident if you keep a permanent home in North Dakota and spend more than 210 days of the year there. Part-year residents and nonresidents figure tax on all income and pay the North Dakota share on Schedule ND-1NR.

North Dakota has reciprocal agreements with Minnesota and Montana. Minnesota residents who return to their Minnesota home at least once a month do not owe North Dakota tax on pay for services in North Dakota, and Montana residents do not owe it on wages. To stop withholding, give your employer Form NDW-R every year by February 28 or within 30 days of starting work.