North Dakota Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for North Dakota. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
North Dakota uses a graduated income tax with 3 brackets for 2026, ranging from 1.95% up to a top rate of 2.5%. The standard deduction is $16,100 for single filers and $32,200 for joint filers.
| Taxable Income | Rate |
|---|---|
| $0 - $48,475 | 0% |
| $48,475 - $244,825 | 1.95% |
| Over $244,825 | 2.5% |
Sales Tax
Groceries are exempt from sales tax. Prescription drugs are exempt.
North Dakota's effective income tax rate is among the lowest in the nation, with most moderate-income earners paying well under 1% effective rate.
What is North Dakota's income tax rate?
North Dakota has 3 income tax brackets for 2026, with rates of 1.95% and 2.5%. The top rate of 2.5% applies to the highest bracket.
Does North Dakota tax groceries?
No, groceries (unprepared food) are exempt from North Dakota's 5% state sales tax.
Why are North Dakota's taxes so low?
North Dakota benefits from significant oil and gas revenue, which helps fund state services and keeps individual tax rates very low.