{"id":375566,"date":"2016-03-31T21:36:18","date_gmt":"2016-04-01T02:36:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/north-dakota-law\/north-dakota-personal-income-tax-laws.html"},"modified":"2016-06-20T19:51:11","modified_gmt":"2016-06-21T00:51:11","slug":"north-dakota-personal-income-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/north-dakota-law\/north-dakota-personal-income-tax-laws.html","title":{"rendered":"North Dakota Personal Income Tax Laws"},"content":{"rendered":"\n
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North Dakota Personal Income Tax Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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Residents of a few states are lucky enough to not have to pay state income taxes in addition to federal income taxes<\/a>, such as in the state of Texas<\/a>. Unfortunately, people who call North Dakota home or earn income in the Flickertail state do have to pay a state tax on their income as well. Here is a brief summary of personal income tax laws in North Dakota.<\/p>\n

North Dakota Personal Income Taxes<\/h2>\n

North Dakota\u2019s income tax has five (5) brackets, with a top assessment of 3.22 percent. The state’s general fund<\/a> is financed mostly by taxes on income, sales and energy. Some lawmakers have proposed the idea of eliminating the state income tax by simply resetting the tax rate to 0 percent. If successful, North Dakota would be the first state to eliminate its income tax since Alaska did it in 1980 after oil started flowing there. Six other states have no income taxes: South Dakota, Florida, Nevada, Texas, Washington and Wyoming.<\/p>\n

Tax issues can be the most complicated area of the law. North Dakota’s personal income tax rates are detailed in the table below. See State Tax Laws<\/a> to learn more about North Dakota and other state taxes.<\/p>\n

Explanation of Chart and More Information on Personal Income Tax Laws<\/a><\/p>\n\n
Code Section<\/td>\n57-38-02, et seq.<\/td>\n<\/tr>
Who is Required to File<\/td>\nResidents and nonresidents on property owned, employment, or business carried on in North Dakota; Individuals, estates, and trusts have optional tax available (\u00a757-38-30.3); Partnerships are not taxed<\/td>\n<\/tr>
Rate (Current as of 2014 Tax Year)<\/td>\n
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  • Up to $36,250: 1.22%<\/li>\n
  • $36,251 – $87,850: 2.27% plus $442.25<\/li>\n
  • $87,851 – $183,250: 2.52% plus $1613.57<\/li>\n
  • $183,251 – $398,350: 2.93% plus $4017.65 <\/li>\n
  • More than $398,350: 3.22% plus $10,320.08<\/li>\n<\/ul>\n<\/td>\n<\/tr>
Federal Income Tax Deductible<\/td>\nYes<\/td>\n<\/tr>
Federal Income Used as Basis<\/td>\nYes<\/td>\n<\/tr><\/tbody><\/table>\n

Note:<\/i><\/b> State laws are subject to change at any time, most often through the enactment of new legislation or decisions from higher courts. You may want to contact a North Dakota tax law attorney<\/a> or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\n

Research the Law<\/h2>\n