North Dakota: Who Pays? 7th Edition
North Dakota
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All figures and charts show 2024 tax law in North Dakota, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.9 percent) state and local tax revenue collected in North Dakota.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $31,100 | $31,100 to $56,700 | $56,700 to $91,400 | $91,400 to $141,500 | $141,500 to $280,000 | $280,000 to $616,100 | Over $616,100 |
| Average Income in Group | $14,700 | $42,500 | $70,400 | $116,200 | $181,600 | $382,100 | $1,321,600 |
| Sales & Excise Taxes | 6.7% | 5.2% | 5% | 3.9% | 3.3% | 2.3% | 1.2% |
| General Sales–Individuals | 3.5% | 2.7% | 2.5% | 2% | 1.6% | 1% | 0.4% |
| Other Sales & Excise–Ind | 1.6% | 1.1% | 1.1% | 0.9% | 0.7% | 0.4% | 0.1% |
| Sales & Excise–Business | 1.7% | 1.4% | 1.3% | 1% | 1% | 0.8% | 0.7% |
| Property Taxes | 2.4% | 2.4% | 2.7% | 1.8% | 2.1% | 1.8% | 1.4% |
| Home, Rent, Car–Individuals | 2% | 1.9% | 2.3% | 1.5% | 1.7% | 1.4% | 0.5% |
| Other Property Taxes | 0.4% | 0.4% | 0.4% | 0.3% | 0.4% | 0.5% | 0.8% |
| Income Taxes | 0% | 0% | 0.1% | 0.5% | 0.7% | 1% | 1.5% |
| Personal Income Taxes | 0% | 0% | 0.1% | 0.5% | 0.7% | 1% | 1.4% |
| Corporate Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0.1% |
| Other Taxes | 0.7% | 0.7% | 0.7% | 0.5% | 0.6% | 0.6% | 0.9% |
| TOTAL TAXES | 9.8% | 8.2% | 8.5% | 6.7% | 6.7% | 5.7% | 4.9% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, North Dakota has the 25th most regressive state and local tax system in the country. Income disparities are larger in North Dakota after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in North Dakota
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Requires combined reporting for the corporate income tax; some foreign tax haven income is partially taxed through GILTI inclusion
Graduated personal income tax structure
Sales tax base excludes groceries
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No refundable income tax credits to offset sales, excise, and property taxes
Income tax exclusion equal to 40 percent of long-term capital gains income
Provides an income tax deduction for state income taxes paid
Does not levy a tax on estates or inheritances
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