North Dakota Financial Calculators

North Dakota offers one of the lowest income tax burdens in the nation, with a flat rate of just 1.95% on taxable income. The Peace Garden State combines this minimal tax bite with a robust energy-driven economy and affordable living that make it a financially attractive place to work and live. Our North Dakota Paycheck Calculator uses current 2026 federal and state tax data to compute your exact take-home pay after all withholdings and deductions.

Understanding North Dakota Income Taxes

North Dakota recently simplified its income tax to a flat rate of 1.95%, replacing a previous graduated system. This rate is one of the lowest of any state that levies an income tax, making the North Dakota income tax bite almost negligible on most paychecks. For a worker earning $60,000, the state income tax amounts to roughly $1,170 for the entire year — far less than most states with income taxes would charge.

Beyond the minimal state income tax, North Dakota workers pay federal income tax (10% to 37% depending on bracket), Social Security tax at 6.2% on wages up to $184,500, and Medicare tax at 1.45% with the 0.9% additional surtax on earnings above $200,000. The 2026 federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) reduces your federal taxable income. North Dakota allows a standard deduction and personal exemptions for state tax purposes as well. The combined federal and state tax burden in North Dakota is among the lowest in the country. Use the North Dakota Paycheck Calculator for a precise net pay figure.

Employment and Salary Landscape

North Dakota's economy is heavily influenced by the energy sector, particularly oil production in the Bakken formation in the western part of the state. The oil boom transformed communities like Williston and Dickinson, bringing a surge of high-paying jobs and economic activity. While oil prices and production levels fluctuate, the energy sector continues to be a major economic driver and a source of above-average wages for workers in extraction, transportation, and support services.

The median household income in North Dakota is approximately $68,000 per year, above the national median. Fargo, the largest city, serves as the state's primary economic and population center, with a diversified economy spanning healthcare, technology, education, manufacturing, and agriculture. Bismarck, the state capital, provides government employment and serves as a regional healthcare center. Grand Forks anchors the northeastern economy with the University of North Dakota and Grand Forks Air Force Base.

Agriculture remains foundational to North Dakota's economy, with the state ranking among the top producers of wheat, sunflowers, canola, dry beans, and flaxseed. The agricultural sector supports extensive support industries in equipment, processing, and transportation. North Dakota's unemployment rate is consistently among the lowest in the nation, often below 3%, creating a tight labor market that benefits job seekers and gives workers leverage in negotiating compensation.

Cost of Living in North Dakota

North Dakota's cost of living index is approximately 89.5, about 10% below the national average. The median home price is approximately $250,000, though this varies substantially by location. Western oil country communities have experienced price inflation related to energy sector demand, while Fargo, Bismarck, and smaller communities maintain more affordable housing stocks. The overall affordability, combined with the very low income tax, makes North Dakota one of the most financially efficient states for working households.

The state sales tax rate is 5%, with local additions bringing combined rates to as high as 8% in some jurisdictions. Groceries are exempt from state sales tax, which is a benefit for family budgets. Utilities can be somewhat variable — heating costs during North Dakota's long, harsh winters are a significant expense, while summer cooling costs are minimal. Healthcare costs are generally moderate, and access to quality healthcare through systems like Sanford Health and Essentia Health is strong relative to the state's population. Transportation costs can be higher in rural areas due to longer distances.

Housing and Property Taxes

North Dakota property taxes are close to the national average, with an effective rate of approximately 0.94%. On the median-priced home of $250,000, annual property taxes come to roughly $2,350. Rates vary by county, with Cass County (Fargo) and Burleigh County (Bismarck) among the higher-rate areas due to urban service demands. Rural counties generally have lower rates but may have less in assessed property value.

The North Dakota housing market is relatively stable, though the western part of the state experienced significant price swings during the Bakken oil boom and subsequent corrections. Fargo has seen steady, moderate price appreciation driven by consistent population growth and a strong local economy. The state offers a homestead credit for qualifying low-income homeowners and renters, and disabled veterans receive additional property tax exemptions. Overall, the combination of affordable home prices, moderate property taxes, and a near-zero state income tax makes homeownership in North Dakota very accessible.

Key Financial Facts About North Dakota

• State income tax: 1.95% flat rate (one of the lowest in the nation)
• Sales tax: 5% state + up to 3% local (groceries exempt at state level)
• Property tax: ~0.94% average effective rate
• Median home price: ~$250,000
• Median household income: ~$68,000
• Population: ~780,000
• Capital: Bismarck
• Major employers: Sanford Health, Essentia Health, state government