North Dakota State Taxes: A Simple Guide

🌾North Dakota state income tax

North Dakota taxes personal income under its own rules and brackets, separate from federal law. In general:

• •Residents who exceed certain income thresholds must file a North Dakota income tax return.
• •Nonresidents may need to file if they earn North Dakota–source income.
• •North Dakota's definitions of taxable income, deductions, and credits differ from federal rules.

A typical resident will file a federal Form 1040 and a North Dakota return if they meet the state's filing requirements.

🛒Sales and use tax

North Dakota has a state sales tax, and many cities and counties add local sales taxes on top, resulting in different total rates across the state.

• •Many goods and some services are taxable.
• •If you buy taxable items from out-of-state sellers without tax, you may owe use tax to North Dakota.

Businesses must collect and remit state and local sales taxes on taxable transactions when required.

🏡Property taxes

Property taxes in North Dakota are levied by counties, cities, school districts, and other local entities, based on the assessed value of real property such as homes and land.

• •Homeowners receive property tax bills from their county.
• •Property taxes help fund schools and local government services.
• •Some taxpayers may qualify for property tax credits or relief programs.

🔗Putting North Dakota taxes together

A typical North Dakota resident may deal with:

• •Federal income tax (Form 1040)
• •North Dakota state income tax
• •State and local sales and use taxes
• •Local property taxes if they own a home

Once you understand basic filing rules, adding North Dakota's state and local rules is much easier.