North Dakota Salary & Tax Calculator
North Dakota's top state income tax rate is just 2.5%, among the lowest in the nation. Enter your gross salary below for a realistic take-home pay estimate.
North Dakota levies a personal income tax, but at rates so modest that it barely registers next to most other states — the top marginal bracket sits at just 2.5%, the lowest ceiling of any state that taxes income at all. The contrast with its neighbors is striking: Minnesota, directly to the east, taxes top earners at up to 9.85%, one of the steepest rates in the country, while Montana's top bracket also runs meaningfully higher than North Dakota's. Only South Dakota beats North Dakota outright, since it charges no state income tax whatsoever. North Dakota's unusually light income tax burden is partly a byproduct of the state's oil and gas extraction tax revenue tied to Bakken formation production, which reduces how much the state needs to lean on individual income taxes to fund its budget. As in most states, North Dakota does not permit cities or counties to stack an additional local income tax on top, so the calculator below — pre-filled at the 2.5% top bracket — gives a close approximation of your real state tax burden for most income levels.
*Estimates only, not tax or financial advice. Actual North Dakota withholding depends on your filing status and exact bracket. Consult a tax professional for precise figures.
Compare your take-home pay to the general US calculator or another state.
General Salary & Tax Calculator🌾 North Dakota Paycheck Basics
Why North Dakota keeps one of the lightest income tax burdens in the country.
How it Works
Strips estimated North Dakota state tax, federal tax, and common deductions from your gross salary to reveal your real take-home pay.
The Formula
Net Pay = Gross Pay − (Federal Tax + North Dakota State Tax up to 2.5% + FICA + Pre-tax Deductions).
Pro Tip
Since North Dakota's state tax bite is so small, your federal bracket will drive most of the variation in your effective tax rate — focus your tax planning there.
Frequently Asked Questions
Does North Dakota have a state income tax? +
Yes, but it's one of the lightest in the country. North Dakota uses a graduated income tax with a top marginal rate of just 2.5%, the lowest top rate among all states that levy an income tax at all.
How does North Dakota's tax rate compare to neighboring states? +
North Dakota's 2.5% top rate is dramatically lower than Minnesota's top rate of 9.85%. South Dakota, another neighbor, has no state income tax at all, so it still edges out North Dakota for take-home pay.
Do North Dakota cities or counties add local income tax? +
No. North Dakota does not allow cities or counties to levy a separate local income tax on wages. Your paycheck deductions are limited to federal tax, North Dakota's modest state tax, and FICA.
What is the difference between gross pay and net pay in North Dakota? +
Gross pay is your salary before any withholding. Net (take-home) pay is what remains after federal income tax, North Dakota state income tax (up to 2.5%), Social Security (6.2%), Medicare (1.45%), and any pre-tax deductions.
How accurate is this North Dakota salary calculator? +
This calculator applies a single effective tax rate (pre-filled at North Dakota's top 2.5% bracket, which you can adjust) to your income after deductions. It does not model North Dakota's full graduated bracket structure, filing status, or credits.
Why is North Dakota's income tax so low compared to other states? +
North Dakota's state budget benefits significantly from oil and gas extraction taxes tied to Bakken formation production, which reduces reliance on personal income tax revenue. This has allowed lawmakers to keep individual income tax rates among the lowest in the nation.