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North Dakota State Taxes

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State Income Taxes in North Dakota

The state of North Dakota does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 1.10% to 2.90% for 2020.

State Business Taxes in North Dakota

Similar to the state’s individual income tax, the state of North Dakota has Corporate business tax rates on a marginal scale that range from 1.41% to 4.31%. For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., they are taxed the individual income tax rates ranging between 1.10% and 2.90%

Sales and Property Taxes in North Dakota

Sales Tax – Like many states, North Dakota has multiple tax rates. One at the state level and another at the local level. The state rate is 5.00% the average local rate is 1.86% (total average rate for North Dakota Sales Tax is 6.86%). Another thing to be aware of, North Dakota uses a broad base for charging sales tax. Similar to states such as HawaiiNew Mexico, and South Dakota, they charge sales tax on many business-to-business personal services.

Property Taxes in North Dakota – the average property tax rate for residential property in the state of North Dakota is 0.95%, which is close to the national median (0.93%).

Payroll Taxes in North Dakota

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Indiana has a wage base of $36,400 for 2020
  • UI Rates – range from 0.15% to 9.75%
  • Schedules – North Dakota does not have any UI Schedules.

North Dakota Business Entities – LLCs

North Dakota is an inexpensive state to open an LLC. Here are some important facts:

  • North Dakota’s annual LLC fee at only $50.
  • When you register with the state, you pay a one time fee of $135
  • Secretary of State of North Dakota website – click here

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