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North Dakota State Taxes


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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