North Dakota has the lowest income tax of any state that levies one: the first $48,475 of a single filer's taxable income is taxed at 0%, and only 1.95% applies above that (2.5% on very high incomes).
For a typical worker, that means almost no state income tax at all, with take-home rivaling the no-income-tax states. Here is how it works on your paycheck. See your exact take-home with the free North Dakota paycheck calculator.
How North Dakota's income tax works
North Dakota starts from your federal taxable income and applies a 0% rate on the first $48,475 (single) or $80,975 (married), then 1.95% up to about $244,825, and 2.5% only above that. Because the 0% band is so large, most full-time workers owe little to nothing in state income tax. There is no local income tax.
A 2023 reform created this near-flat, ultra-low structure, replacing North Dakota's old graduated brackets and making it the lightest income tax in the nation.
| Taxable income | Rate |
|---|---|
| $0 – $48,475 | 0% |
| $48,475 – $244,825 | 1.95% |
| Over $244,825 | 2.5% |
Your take-home on a $65,000 salary in North Dakota
Here is how a $65,000 salary breaks down for a single filer, using 2025 federal and FICA figures alongside North Dakota's a 0% bracket, then just 1.95% to 2.5%.
| Item | Annual |
|---|---|
| Federal income tax | $5,246 |
| FICA (Social Security + Medicare) | $4,973 |
| North Dakota income tax | $30 |
| Take-home pay | $54,752 |
| Percent of gross kept | 84.2% |
On a $65,000 salary a single filer owes only about $30 in North Dakota income tax, an effective rate near 0%, and keeps roughly $54,752, or 84.2% of gross, essentially the same take-home as a no-income-tax state. Only the portion of income above $48,475 is taxed, and only at 1.95%. Compare with Minnesota.
The lowest income tax of any taxing state
North Dakota's 0% bracket up to $48,475 (single) means a large share of a typical salary is untaxed by the state, and the rate above it is just 1.95%. The practical result is a state income tax so small most workers barely notice it.
North Dakota also stopped taxing Social Security benefits, so retirees pay little or no state income tax as well.
How to keep more of your North Dakota paycheck
North Dakota's rate is already near zero for most workers, but a traditional 401(k) and HSA still lower your federal taxable income (and the HSA avoids FICA), so they mainly boost your federal savings while keeping the tiny state bill at or near nothing.