North Dakota taxes and cost of living (2026)
North Dakota has a graduated income tax from 0.00% to 2.50%. A $100,000 salary is worth about $79,706 a year in national buying power after every tax and North Dakota's prices, #2 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.14M, #6 lowest.
- State income tax
- 0.0%–2.50%
- Sales tax (avg. combined)
- 7.09%
- Property tax (effective)
- 0.96%
- Cost of living
- 89.0
- US = 100
- Social Security taxed?
- No
- Median home
- $266K
Take-home pay in North Dakota
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $0 | 15.1% | $37,955 | $42,666 |
| $75,000 | $6,020 | $5,738 | $35.59 | 16.7% | $55,707 | $62,621 |
| $100,000 | $10,970 | $7,650 | $474 | 20.1% | $70,906 | $79,706 |
| $150,000 | $21,134 | $11,475 | $1,352 | 23.6% | $101,039 | $113,579 |
| $250,000 | $43,304 | $15,514 | $3,107 | 25.8% | $163,075 | $183,315 |
What it takes to retire in North Dakota
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At ND prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $35,584 | $0 | $807 | $889.6K |
| $60,000 | $53,375 | $0 | $1,211 | $1.33M |
| $80,000 | $71,167 | $1,117 | $2,732 | $1.81M |
| $120,000 | $106,751 | $3,584 | $6,006 | $2.76M |
North Dakota tax rules at a glance
- Income tax: North Dakota has a graduated income tax from 0.00% to 2.50%. Starts from federal taxable income, so the federal standard deduction applies (2026: $16,100 / $32,200). Brackets from the official 2026 Form ND-1ES rate schedule (inflation-indexed; Tax Foundation's table still shows 2025 widths). 0% bracket since 2024.
- Local income tax: No local income taxes.
- Social Security: Not taxed. Fully exempt since tax year 2021.
- Retirement income: No general exclusion. Military retirement pay is exempt. The 0% bracket shields roughly the first ~$66k (single) / ~$115k (MFJ) of gross income in practice.
- Capital gains: 40% of net long-term capital gains excluded.
- Sales tax: 5.00% state rate, 7.09% average with local taxes; groceries exempt.
Compare North Dakota with
Frequently asked questions
Does North Dakota have a state income tax?
North Dakota has a graduated income tax from 0.00% to 2.50%. Starts from federal taxable income, so the federal standard deduction applies (2026: $16,100 / $32,200). Brackets from the official 2026 Form ND-1ES rate schedule (inflation-indexed; Tax Foundation's table still shows 2025 widths). 0% bracket since 2024.
How much is $100,000 after taxes in North Dakota?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $70,906 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 20.1% including estimated sales tax.
Does North Dakota tax Social Security?
No. North Dakota does not tax Social Security benefits. Fully exempt since tax year 2021.
How much do you need to retire in North Dakota?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.14M in North Dakota using the 4% rule, after its cost of living and taxes.
Is North Dakota expensive to live in?
North Dakota's cost of living index is 89.0, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $266,100 and median rent is $980 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).