North Dakota State Taxes

North Dakota Income Tax

In 2023, H.B. 1158 lowered the state’s income tax rates by reducing the tax brackets from five to only three tax rates of 0%, 1.95%, and 2.5%, which is one of the lowest in the United States. The rate varies based on filing status and taxable income.

2025 North Dakota Tax Rates – Single

North Dakota Taxable Income	Tax Rate
$0 – $48,475	0%
$48,475 – $244,825	1.95%
$244,825 and over	2.50%

2025 North Dakota Tax Rates – Married Filing Jointly or Qualifying Widow(er)

North Dakota Taxable Income	Tax Rate
$0 – $80,975	0%
$80,975 – $298,075	1.95%
$298,075 and over	2.50%

2025 North Dakota Tax Rates – Head of Household

North Dakota Taxable Income	Tax Rate
$0 – $64,950	0%
$64,950 – $271,450	1.95%
$271,450 and over	2.50%

Who Must File?

Full-year residents who are required to file a federal income tax return must also file a North Dakota income tax return. You are considered a full-year resident if you lived in North Dakota for the entire tax year or maintained a home (owned or rented) and spent a total of 210 days or more in the state.

Other Residents

You may also need to file a North Dakota income tax return if any of the following apply:

• Part-Year Resident: You have gross income from any source while a resident of North Dakota or a North Dakota source while residing outside the state, and you a required to file a federal income tax return.
• Nonresident: You are required to file a federal return and have gross income from a North Dakota source.
• Montana or Minnesota Resident: Minnesota residents who return home at least once a month while working in North Dakota and whose only gross income was from North Dakota sources (personal or professional services) must file. Full-year residents of Montana do not have to file a North Dakota income tax return for wages earned from North Dakota sources.

Native Americans are not subject to North Dakota income taxes and do not have to file a return if all of the following are true: (1) they are enrolled as a member of a federally-recognized tribe, (2) they lived on any Indian reservation in North Dakota, and (3) all of their income was derived from sources on any Indian reservation in the state.

North Dakota Sales Tax

North Dakota imposes a 5% state sales tax on most retail sales. Local (city and county) governments may also levy an additional sales tax of up to 3%. These taxes are administered by the Office of State Tax Commission on behalf of the city or county.

North Dakota Property Taxes

North Dakota’s effective property tax rate is .99%, which is slightly above the national average.

The median property tax bill in North Dakota is approximately $1,780. Cass County has the highest property tax at an average of $3,294. The lowest amount is $267 in Sioux County.

North Dakota Property Tax

Highest	$3294
Median	$1780
Lowest	$267

Yearly Cost Per Resident

North Dakota Tax Holidays

At this time, there are no tax holidays scheduled in North Dakota.

North Dakota Tax Relief

When North Dakota income taxes remain unpaid, the balance can become harder to manage as penalties and interest continue to accrue. The North Dakota Office of State Tax Commissioner may also take steps to collect delinquent taxes. Whether you’ve fallen behind because of unfiled returns, financial difficulties, or outstanding business tax obligations, dealing with the problem sooner may help keep your tax situation from escalating.

Being unable to pay your entire North Dakota tax bill at once doesn’t necessarily mean you are out of options. Depending on your circumstances and eligibility, you may be able to request a payment plan or explore other available tax resolution options. Addressing your balance before collection efforts advance may also help you avoid or resolve actions such as tax liens, wage garnishments, and levies.

Understanding how North Dakota handles past-due taxes and learning about the relief options that may be available can help you decide how to move forward. Taking proactive steps to address what you owe can put you on a clearer path toward resolving your tax debt and bringing your account back into good standing.

Common North Dakota State Tax Problems

How North Dakota Collects Tax Debt

If you have past-due North Dakota income taxes, the state will send you a Statement of Tax Due. This explains the amount past due, including penalties and interest fees. Failure to pay your back taxes will result in your account being assigned to the Office of State Tax Commissioner’s Collections Section (Collection letter).

Once assigned to Collections, you may also receive a Notice of State Income Tax Refund Offset and/or Notice of Intent to Offset Federal Income Tax Refund. The state may also file a tax lien to protect its interest.

Continued non-compliance may also result in the following collection actions:

• Wage garnishment
• Bank levies
• Asset seizure

Statement of Tax Due sent to taxpayer

Collection letter sent

Collection actions begin

North Dakota State Tax Relief Options

North Dakota offers a few relief options, including:

• Payment Plan – If you can’t pay your tax bill in full, you may be eligible to request a payment plan, which allows you to pay off your tax debt over several months.
• Penalty and Interest Waiver – Taxpayers who can show good cause why they filed or paid their taxes late may request a penalty and interest waiver.

If you’re experiencing financial hardship and can’t pay your North Dakota income tax bill, contact the Office of State Tax Commissioner as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

North Dakota Tax Relief FAQs

How do I set up an North Dakota payment plan?

You may request a payment plan by calling the Office of State Tax Commissioner’s Collections Section at (701) 328-1244 or emailing them at collectionstax@nd.gov. You can also request a payment plan online through your NDTAP account. Be sure to have your collection letter/notice on hand, as you will need the reference number when completing the online request form.

What happens if I ignore North Dakota tax notices?

If you don’t pay your North Carolina income taxes and ignore repeated notices, the state will refer your account to collections. This puts you at risk for tax liens, wage garnishment, and asset seizure (levies).

Can North Dakota garnish my wages for unpaid taxes?

Yes, North Carolina can garnish up to 25% of your disposable earnings. If you have dependents living with you, that amount will be reduced by $20 per week per dependent.

Can North Dakota levy my bank account?

Yes. The Office of State Tax Commissioner’s Collections Section can issue a bank levy and seize any money (up to the amount you owe) in your accounts.

How long does North Dakota have to collect back taxes?

North Dakota generally has 10 years to collect back taxes once it is officially assessed. The 3-year time limit to assess the tax debt from the time you file is separate from the 10-year collection rule.

North Dakota Tax Resources

If you need assistance preparing your North Dakota state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the NDTax website for additional resources.

• Find a Form
• Where’s My Refund?
• Taxpayer Assistance: 701-328-7088