North Dakota Paycheck Calculator
Estimate your take-home pay in North Dakota. The state levies a graduated income tax that tops out at 2.5% (0% on the first bracket, then 1.95% to 2.5%). This means a portion of every paycheck goes toward state income tax in addition to federal withholding, Social Security, and Medicare.
Disclaimer: All figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Tax rates, brackets, and withholding rules change and vary by locality and personal circumstances. Verify current rates with the North Dakota Department of Revenue or the IRS, and consult a qualified tax professional before making financial decisions.
North Dakota Tax Snapshot
- State Income Tax
- 2.5% top rate
- Sales Tax (state + local avg)
- 7.09%
- Avg Property Tax Rate
- 0.94%
- Median Home Value
- $232,500
- State Minimum Wage
- $7.25/hr
Did You Know?
North Dakota exempts a large first bracket entirely, so many filers owe no state income tax at all, and its top rate is just 2.5%.
How North Dakota's Graduated Brackets Affect Your Paycheck
When you earn a paycheck in North Dakota, your employer withholds federal income tax, Social Security (6.2%), and Medicare (1.45%). On top of that, the state withholds income tax based on 0% on the first bracket, then 1.95% to 2.5%. The state minimum wage is $7.25 per hour, which sets the floor for hourly workers. Understanding these deductions helps you budget effectively and plan for the average 0.94% property tax rate on homes valued around $232,500.
North Dakota also levies a combined state and average local sales tax of 7.09%, which affects your overall purchasing power. Factor this into your budget when calculating how far your paycheck stretches.
Where You Live vs. Where You Work in North Dakota
North Dakota has income tax reciprocity agreements with Minnesota and Montana. If you live in North Dakota and work in one of those jurisdictions — or the other way round — your wages are taxed only by your state of residence, provided you file the non-residence certificate your employer's state requires. Without that form on file, the work state will withhold anyway and you will have to claim it back.
North Dakota has no general local income or wage tax, so state withholding is the only state-level line on your pay stub alongside federal tax and FICA.
How North Dakota's Income Tax Compares Nationally
North Dakota uses a graduated income tax — 0% on the first bracket, then 1.95% to 2.5% — so higher slices of income are taxed at higher rates rather than one flat percentage.
Its 2.5% top rate is the 41st-highest nationally among the 42 states and jurisdictions that tax wages, below the median top rate of 5.25%.
For comparison, nearby states line up like this: Minnesota (top rate 9.85%); Montana (top rate 5.65%); South Dakota (no income tax).
Frequently Asked Questions
Does North Dakota have a state income tax? + −
Yes. North Dakota has a state income tax with a top rate of 2.5%. Your effective rate depends on your filing status and income brackets. North Dakota exempts a large first bracket entirely, so many filers owe no state income tax at all, and its top rate is just 2.5%.
What is the sales tax rate in North Dakota? + −
The North Dakota state sales tax rate is 5%. When you include the average local rate of 2.09%, the combined rate is approximately 7.09%. Actual rates vary by city and county.
How do I calculate my North Dakota take-home pay? + −
Start with your gross salary, subtract federal income tax (based on your W-4 and tax bracket), subtract FICA taxes (7.65% — 6.2% Social Security up to the wage base + 1.45% Medicare), then subtract North Dakota state income tax at your marginal rate. The remainder is your net take-home pay. Our calculator does this automatically.
What payroll deductions apply in North Dakota? + −
All North Dakota employees pay federal income tax and FICA (Social Security 6.2% + Medicare 1.45%). State income tax is also withheld based on North Dakota's brackets. Additional deductions may include 401(k) contributions, health insurance premiums, and any local taxes.
How often are North Dakota employees typically paid? + −
Most North Dakota employees are paid biweekly (26 paychecks per year) or semi-monthly (24 paychecks). Some employers use weekly or monthly pay schedules. Our calculator supports all frequencies — enter your gross pay for one period and it calculates your net pay after all applicable North Dakota taxes and deductions.
What are the North Dakota income tax brackets? + −
North Dakota uses a graduated structure: 0% on the first bracket, then 1.95% to 2.5%. Only the income that falls within each bracket is taxed at that bracket's rate, so your effective rate is always lower than the 2.5% top rate.
Is North Dakota a high income tax state? + −
North Dakota's top rate of 2.5% ranks 41st-highest among the 42 states and jurisdictions with a wage income tax, below the national median top rate of 5.25%. Because the brackets are graduated (0% on the first bracket, then 1.95% to 2.5%), most filers pay an effective rate well below the headline number.
Does North Dakota have income tax reciprocity with other states? + −
Yes — with Minnesota and Montana. Under those agreements your wages are taxed only where you live, not where you work. You have to give your employer the non-residence withholding certificate for the work state; if you do not, that state withholds its tax and you have to file a return there to get it refunded.
How do nearby states' income taxes compare with North Dakota's? + −
Minnesota (top rate 9.85%); Montana (top rate 5.65%); South Dakota (no income tax). 2 of the 3 nearby states listed have a higher top rate than North Dakota's 2.5%.
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