North Dakota State Tax Credit

Across the state, property taxes are among the largest expenses for many residents. Fortunately, ND legislators have recently added new property tax credits and increased existing ones. This will help ND families pay their property taxes and reduce their taxable liability. The new credit is called the Primary Residence Credit and provides up to a $500 credit for property tax years 2024 and 2025. It is available to anyone who owns a house, mobile home, townhome, duplex, or condo and uses it as their primary residence. There are no age or income restrictions, and homeowners can apply online.

The Legislature earmarked $100 million for the credit in its 2023-2025 state budget. This amount is enough to cover the credit for all eligible taxpayers for the next several years. Since the program is state-funded, it won’t eat into local tax collections. The credit is available to all North Dakotans who own a home (house, mobile home, town home, duplex, condo) and use it as their primary residence. The Office of the State Tax Commissioner will begin accepting applications for this credit on January 1, 2024.

The state tax commissioner’s office began accepting applications for the new credit on January 1. The office has already received more than 20,000 applications. To qualify, residents must show proof of identity and home ownership. The credit is not a refund, but will be applied to the homeowner’s property tax statement.

North Dakota State Tax Credit Application

• North Dakota State Tax Credit Applications for the 2024 tax year were accepted from January 1 to March 31, 2024. Unfortunately, the deadline to apply has already passed.
• The application process is entirely online through the North Dakota Office of State Tax Commissioner’s website [North Dakota Office of State Tax Commissioner].

North Dakota Charitable Giving Tax Credit

• This credit applies to income tax and offers a credit for donations to qualified charities.
• There are two options:
  • Endowment gifts of $5,000 or more get a credit of 40% of the federal charitable deduction, capped at $10,000 per year (single) or $20,000 (joint).
  • Planned gifts to qualified charities get a similar 40% credit on the federal deduction, also capped at $10,000/$20,000.
• Unused credit can be carried forward for up to 3 additional years.