North Dakota State Income Tax
The state of North Dakota has some of the lowest income tax rates in the country.
North Dakota state income tax is a progressive tax on ordinary income. Ordinary income includes wages from a job, profits from a small business, dividends and interest income, and some retirement accounts. It does not include long-term capital gains or qualified dividends, which receive special tax treatment. North Dakota’s top marginal tax rate is 2.5 percent, making it one of the lowest in the country.
In 2023, the legislature enacted a law that lowers North Dakota State Income Tax for the first time in 20 years. The measure is part of a comprehensive package that expands access to childcare programs, boosts career training and recruitment incentives, and addresses the workforce shortage. It also earmarks $100 million for a homestead credit program that will reduce property taxes on seniors’ primary residences. The credit is state-funded, meaning it won’t eat into local sales tax revenue.
How to File North Dakota State Income Tax?
If you’re an individual, you can file your return on paper or electronically using the eFile system. You can also register for a free online account to submit your contribution and wage reports. You can e-file your state and federal returns at the same time.
If you are an employer in North Dakota, you must register your business for income tax withholdings. This can be done through the Office of State Tax Commissioner website. You can also make unemployment insurance (UI) taxes electronically through UI EASY. The system allows you to make payments anytime, view your filing status, and file quarterly reports.
North Dakota State Income Tax Due Dates
North Dakota income tax due dates are based on the filing frequency assigned to your business by the Office of State Tax Commissioner. Failure to file and remit taxes by the assigned date can result in penalties and interest charges.
Individuals must file Form ND-1 or ND-EZ by April 16 of the year following the tax year in which they earned income. They may be required to make quarterly estimated payments if they expect their net tax liability to exceed $1,000.
If you need an extension, you can file an ND individual tax extension with Form 101 by October 15.
