North Dakota Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)
⚠️Informational only — not legal or tax advice.
Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: March 7, 2026
Table of Contents
- Quick Reference
- Key Takeaways
- Quick Questions About North Dakota Income Tax
- North Dakota Income Tax Rates and Brackets (2026)
- How North Dakota Taxable Income Is Calculated
- Statutory Authority
- Who Must File North Dakota Income Tax
- What Income Is Taxable in North Dakota
- Standard Deduction and Exemptions
- North Dakota Income Tax Credits
- Filing Deadlines
- Filing Options
- Penalties and Interest
- Special Considerations for North Dakota Income Tax
- Tax Residency vs. Domicile
- Military Personnel
- Retirees
- Students
- Part-Year Residents
- Documentation Commonly Requested in Residency Audits
- Common Tax Filing Situations
- Local Income Taxes
- Forms & Publications
- Information Verification Log
- Where to Check for Updates
- Resources
- Tax Glossary
- Update History
Quick Reference
Does North Dakota have income tax? Yes
Tax structure: Progressive (3 brackets, including a 0% bracket)
Tax rates: 0% to 2.50%
Standard deduction: North Dakota uses federal taxable income as the starting point — the federal standard deduction applies
Local income tax: No
Official source: https://www.tax.nd.gov/individual-income-tax
Key Takeaways
- Residents: North Dakota residents pay state income tax on income from all sources, regardless of where it was earned.
- Non-residents: Non-residents pay North Dakota income tax only on North Dakota-source income.
- Tax rates: Three-bracket progressive system with a substantial 0% first bracket, effective for tax years beginning 2023. Brackets are adjusted annually for inflation.
- Local income tax: North Dakota does not have local income taxes.
- Reciprocity: North Dakota has reciprocal agreements with Minnesota and Montana for wages and salaries.
- Primary forms: Form ND-1 (full-year resident and non-resident/part-year resident), Form ND-EZ (simplified resident return)
Quick Questions About North Dakota Income Tax
What is the North Dakota income tax rate for 2025?
North Dakota has a progressive income tax with three brackets. The rates are 0%, 1.95%, and 2.50%, depending on filing status and income level.
Does North Dakota have state income tax?
Yes. North Dakota imposes an individual income tax. However, the lowest bracket is 0%, meaning many lower- and middle-income taxpayers owe little or no state income tax.
What are the income tax brackets in North Dakota?
For Tax Year 2025, North Dakota has three brackets. Single filers owe 0% on income up to $48,475, 1.95% on income from $48,475 to $244,825, and 2.50% on income over $244,825. See full tables below by filing status.
Is Social Security taxed in North Dakota?
Partially. North Dakota allows a deduction for the portion of Social Security benefits included in federal taxable income for individuals with adjusted gross income of $50,000 or less (or $100,000 or less for married filing jointly). Above those thresholds, the taxable portion is included in North Dakota taxable income.
Does North Dakota tax retirement income?
Military retirement pay is fully deductible from North Dakota taxable income. Other retirement account distributions (401(k), IRA, pension) are generally taxable, following federal treatment as the starting point.
Do I need to file a North Dakota income tax return?
You must file if you are a resident, part-year resident, or nonresident who is required to file a federal return or who receives income from a North Dakota source.
North Dakota Income Tax Rates and Brackets (2026)
The following tax rates and brackets apply to income earned in 2025, reported on returns filed in 2026.
| Rate Snapshot | |
|---|---|
| Tax Attribute | Amount/Status |
| Lowest Tax Rate | 0% |
| Highest Tax Rate | 2.50% |
| Tax Structure | Progressive |
| Number of Brackets | 3 |
| State Income Tax | Yes |
| Local Income Tax | No |
| Standard Deduction | Federal standard deduction applies (North Dakota conforms to federal taxable income) |
| Personal Exemption | None (North Dakota uses federal taxable income as the starting point) |
| Source | https://www.tax.nd.gov/individual-income-tax |
| Single Filers | ||
|---|---|---|
| Over | But Not Over | Tax Rate |
| $0 | $48,475 | 0.00% |
| $48,475 | $244,825 | 1.95% |
| $244,825 | — | 2.50% |
| Married Filing Jointly and Qualifying Widow(er) | ||
|---|---|---|
| Over | But Not Over | Tax Rate |
| $0 | $80,975 | 0.00% |
| $80,975 | $298,075 | 1.95% |
| $298,075 | — | 2.50% |
| Married Filing Separately | ||
|---|---|---|
| Over | But Not Over | Tax Rate |
| $0 | $40,475 | 0.00% |
| $40,475 | $149,025 | 1.95% |
| $149,025 | — | 2.50% |
| Head of Household | ||
|---|---|---|
| Over | But Not Over | Tax Rate |
| $0 | $64,950 | 0.00% |
| $64,950 | $271,450 | 1.95% |
| $271,450 | — | 2.50% |
| Source: https://www.tax.nd.gov/individual-income-tax | ||
How North Dakota Taxable Income Is Calculated
North Dakota uses federal taxable income as the starting point for calculating state taxable income. This means North Dakota automatically conforms to the federal standard deduction and personal exemption rules. Taxpayers then apply specific North Dakota additions and subtractions (such as the military retirement deduction or Social Security deduction) to arrive at North Dakota taxable income.
This approach, in effect for tax years beginning after December 31, 1988, also means North Dakota’s starting point conforms to federal changes such as those from the One Big Beautiful Bill Act (OBBBA) enacted in July 2025.
Source: https://www.tax.nd.gov/news/tax-legislative-changes/significant-changes-law/individual-income-tax-history
Source: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
Statutory Authority
North Dakota individual income tax is authorized under the following legal framework:
Constitutional Authority:
North Dakota Constitution, Article X — grants the legislative assembly the power to levy taxes.
Statutory Authority:
North Dakota Century Code (N.D.C.C.) Chapter 57-38 — Individual Income Tax. Key provisions include:
- N.D.C.C. § 57-38-01 — Definitions
- N.D.C.C. § 57-38-30.3 — Individual income tax rates and brackets
- N.D.C.C. § 57-38-31 — Filing requirements
- N.D.C.C. § 57-38-59 — Withholding requirements
Administrative Regulations:
North Dakota Administrative Code, Chapter 81-03 — Office of State Tax Commissioner rules.
Legislative History:
- Original income tax enacted: 1919
- Perpetual federalization of taxable income computation: 1989 (tax years beginning after December 31, 1988)
- Major rate reduction: 2023 Legislature (HB 1158) — replaced five-bracket system with three-bracket system including a 0% first bracket; effective for tax years beginning January 1, 2023
- Bracket thresholds adjusted annually for inflation
Source: https://ndlegis.gov/cencode/t57c38.pdf
Source: https://www.tax.nd.gov/news/tax-legislative-changes/significant-changes-law/individual-income-tax-history
Who Must File North Dakota Income Tax
Residents
North Dakota law requires full-year residents to file a state income tax return if they are required to file a 2025 federal individual income tax return. This applies even if the resident worked outside North Dakota or has income from sources outside the state.
Definition of Resident: A resident is an individual whose legal residence (domicile) is North Dakota — the permanent home to which the person always intends to return when absent.
Statutory 7-Month Rule: A full-year nonresident who maintains a permanent place of abode in North Dakota and spends more than 210 days in the state during the tax year must file as a full-year resident. A permanent place of abode means a house, apartment, or other year-round dwelling with cooking and bathroom facilities maintained on a permanent or indefinite basis. This rule does not apply to: part-year residents, full-year nonresidents in the U.S. armed forces, or full-year residents of Minnesota or Montana covered by reciprocity.
Part-Year Residents
Individuals who moved into or out of North Dakota during 2025 file as part-year residents and report income earned during their North Dakota residency period.
Non-Residents
A nonresident (defined as someone who did not live in North Dakota for more than 7 months) must file a North Dakota income tax return if:
- They are required to file a federal income tax return, AND
- They received income from a North Dakota source.
North Dakota-source income for nonresidents includes wages earned while working in North Dakota, rental income from North Dakota property, business income from North Dakota operations, and royalty income from North Dakota land.
Exception — Minnesota and Montana residents: Due to reciprocal agreements, wages and salaries earned in North Dakota by residents of Minnesota or Montana are not taxable by North Dakota. However, if North Dakota income tax was withheld, a return must be filed to claim a refund.
Source: https://www.tax.nd.gov/news/resources/residency/non-resident
What Income Is Taxable in North Dakota
Residents
As a North Dakota resident, all income is subject to North Dakota income tax regardless of its source — inside or outside the state. This includes wages, self-employment income, business income, investment income, rental income, and retirement distributions.
Non-Residents
Non-residents are taxed only on income sourced to North Dakota, including wages earned for work physically performed in North Dakota, business income from North Dakota operations, and rental or royalty income from North Dakota property.
Social Security Benefits
North Dakota allows a deduction for the portion of Social Security benefits included in federal taxable income, but only for taxpayers whose adjusted gross income (AGI) is:
- $50,000 or less (single filers)
- $100,000 or less (married filing jointly)
Taxpayers above these AGI thresholds owe North Dakota income tax on the taxable portion of Social Security benefits, consistent with federal treatment.
U.S. Railroad Retirement Board (Tier 1) Benefits
Tier 1 Railroad Retirement benefits are exempt from North Dakota income tax. The taxable portion of Tier 1 benefits reported on the federal return may be deducted from North Dakota taxable income. This deduction applies regardless of the taxpayer’s income level.
Military Pay
Beginning with tax year 2023, all military pay received by members of the armed forces, National Guard, and Reserve components is deductible from North Dakota taxable income. This includes pay for bonuses, education, and training, to the extent it was includable in federal taxable income.
Military Retirement Pay
Military retirement benefit payments received by retired members of the U.S. armed forces, Reserve, and National Guard (or their surviving spouses) may be fully deducted from North Dakota taxable income. The deduction equals the taxable amount of the benefits reported on the federal return (Form 1040, line 5b). This includes retirement benefits received as a dual status military technician under Title 10 or Title 32.
Source: https://www.tax.nd.gov/news/resources/residency/military-service-members
Pension Income
Civilian pension and retirement account distributions (401(k), IRA, annuity) are generally taxable in North Dakota, following federal treatment. There is no general state exemption for private or public pension income, except for the specific military retirement and peace officer retirement deductions noted above.
Beginning tax year 2023: A deduction is available for retirement benefits received from a retirement plan by individuals who retired as peace officers.
Standard Deduction and Exemptions
North Dakota uses federal taxable income as the starting point for computing state taxable income. This means:
- The federal standard deduction (or itemized deductions) selected on the federal return automatically applies to North Dakota.
- Taxpayers must use the same filing status and the same standard or itemized deductions used for federal purposes.
- There is no separate North Dakota standard deduction amount to calculate.
| 2025 Federal Standard Deduction (as starting point) | |
|---|---|
| Filing Status | Federal Standard Deduction |
| Single | $15,000 (OBBBA increased amount for 2025) |
| Married Filing Jointly | $30,000 |
| Married Filing Separately | $15,000 |
| Head of Household | $22,500 |
Note: The One Big Beautiful Bill Act (OBBBA) enacted in July 2025 increased federal standard deduction amounts. Because North Dakota conforms to federal taxable income, these higher deductions automatically reduce North Dakota taxable income for 2025 returns.
Personal Exemptions: North Dakota does not have a separate personal exemption. The federal starting point is post-exemption federal taxable income.
North Dakota Income Tax Credits
1. Credit for Income Tax Paid to Another State or Local Jurisdiction
North Dakota residents who earn income in another state that has an income tax may claim a credit against their North Dakota income tax for taxes paid to the other state. This prevents double taxation on the same income.
Eligibility: Resident taxpayers who file and pay income tax in another state on income also taxable in North Dakota.
Source: https://www.tax.nd.gov/credit-income-tax-paid-another-state-or-local-jurisdiction
2. Marriage Penalty Credit
Married couples filing jointly may be eligible for a credit if the combined income pushes them into a higher bracket than they would face as two single filers. The calculation is indexed for inflation annually.
Eligibility: Married individuals filing a joint North Dakota income tax return. See Schedule ND-1TC and the Marriage Penalty Credit Worksheet in the Form ND-1 instructions.
Century Code Reference: N.D.C.C. § 57-38-01.28
Source: https://www.tax.nd.gov/tax-exemptions-credits/income-tax-exemptions-credits
3. Family Member Care Credit
A credit is available for expenses paid for care of qualifying family members, including adult day care, home health agency services, personal care attendant services, homemaker services, respite care, and companionship services.
Eligibility: Expenses must be for care of a qualifying family member, paid to an unrelated provider, and not reimbursed by insurance or government assistance programs. File Schedule ND-1FC and Schedule ND-1TC with Form ND-1.
Century Code Reference: N.D.C.C. § 57-38-01.20
Source: https://www.tax.nd.gov/family-member-care-tax-credit
4. Endowment Fund Credit
A credit is available for contributions to a qualified endowment fund held by a nonprofit organization.
Source: https://www.tax.nd.gov/endowment-fund-contribution-tax-credit
5. Contributions to Nonprofit Private Schools Credit
Credits are available for contributions to qualifying nonprofit private primary schools, high schools, and colleges in North Dakota. Schedules ND-1PSC applies.
6. Adoption Credit
A credit equal to 10% of the federal adoption credit claimed and allowed against federal income tax for the tax year.
Source: https://www.tax.nd.gov/adoption-credit
7. Employer Child Care Contribution Credit (New for Tax Year 2025)
Created by the 2025 Legislature (Senate Bill 2282), this credit allows employers to claim 50% of the first $1,000 of child care contributions per employee per year. Qualified payments include those made directly to licensed North Dakota child care facilities, or to employees as reimbursement, including facilities within 10 miles of North Dakota.
Century Code Reference: N.D.C.C. § 57-38 (as amended by SB 2282)
Source: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
Note: North Dakota offers additional credits including the Angel Fund Investor Credit, Seed Capital Investment Credit, Renaissance Zone Credits, Research Expense Credit, Planned Gift Credit, and several others. See the full list at: https://www.tax.nd.gov/income-tax-incentives
Filing Deadlines
Regular Deadline
April 15, 2026 for Tax Year 2025 returns (Form ND-1 or ND-EZ)
Extension Deadline
October 15, 2026
North Dakota recognizes the federal extension automatically. If you received a federal extension, your North Dakota return is due by October 15, 2026, without filing a separate North Dakota extension request. However, any tax owed must still be paid by April 15, 2026, to avoid interest charges. Penalties apply if the return is not filed by the extension deadline.
To make an extension payment, use Form ND-1EXT.
Interest accrues on any unpaid balance from the April 15 deadline through the date of payment.
Source: https://www.tax.nd.gov/news/resources/tax-deadlines/individual-income-tax-deadlines
Source: https://www.tax.nd.gov/news/tax-commissioner-reminds-taxpayers-approaching-extension-deadline-0
Estimated Tax Payments
Estimated payments are required if you expect your North Dakota net tax liability to exceed $1,000 and you are required to pay federal estimated taxes. Due dates:
| Quarter | Due Date |
|---|---|
| Q1 2025 | April 15, 2025 |
| Q2 2025 | June 15, 2025 |
| Q3 2025 | September 15, 2025 |
| Q4 2025 | January 15, 2026 |
Farmers have modified estimated tax requirements. A penalty for underpayment of estimated taxes applies if the required minimum amount is not paid. No penalty applies if estimated payments total at least 90% of the current year’s tax liability (66⅔% for qualified farmers), or 100% of the prior year’s tax liability (provided the prior year tax was at least $1,000).
Form: ND-1ES (Individual Estimated Tax Payment Voucher)
Source: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2024-iit/28709-form-nd-1es-2025.pdf
Filing Options
Online Filing (E-File)
North Dakota participates in the IRS Federal/State Modernized E-File program, allowing simultaneous filing of federal and state returns. In the 2024 tax year, 94% of North Dakota filers e-filed their returns.
- ND TAP (North Dakota Taxpayer Access Point): https://tap.tax.nd.gov — Check Free File eligibility, make payments, check refund status
- Free File: Available through ND TAP for eligible taxpayers. A public-private partnership between the IRS, states, and tax software providers. Some vendors offer free state filing based on income or other criteria.
- IRS-Approved Tax Software: Various commercial tax software programs support North Dakota returns.
Paper Filing
Paper returns are available for download and mail filing:
- Primary forms: Form ND-1 (standard) or Form ND-EZ (simplified, for simpler returns)
- Forms Library: https://www.tax.nd.gov/forms
Mailing addresses:
With payment:
Office of State Tax Commissioner
600 E. Boulevard Ave., Dept. 127
Bismarck, ND 58505-0599
Without payment (refund or zero balance):
Office of State Tax Commissioner
P.O. Box 5621
Bismarck, ND 58506-5621
Which Form to Use
Use Form ND-EZ if you answer No to all of the following: you had income other than wages and North Dakota-source income; you had additions or subtractions other than standard ones; you are paying estimated tax; you are making an extension payment.
Use Form ND-1 for all other returns, including part-year resident and nonresident returns, and returns with multiple adjustments, credits, or complex income types.
Source: https://www.tax.nd.gov/individual-income-tax
Source: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
Penalties and Interest
Late Filing Penalty
A penalty applies if the return is filed after the extension deadline (October 15, 2026) without reasonable cause.
Late Payment / Underpayment Interest
Interest accrues on any unpaid tax balance from the April 15, 2026, deadline through the date of payment. Interest rates are set under N.D.C.C. Chapter 57-38.
Underpayment of Estimated Tax
Interest (not a separate penalty) is charged on underpaid estimated taxes if the taxpayer did not pay at least the required minimum amount through quarterly payments.
Safe harbor: No interest applies on estimated tax underpayment if payments total at least 90% of the current year’s tax (66⅔% for farmers), or 100% of the prior year’s tax liability (if prior year tax was $1,000 or more).
Source: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
Statutory authority: N.D.C.C. Chapter 57-38
Special Considerations for North Dakota Income Tax
Remote Workers and Multi-State Taxation
Living in North Dakota, Working for an Out-of-State Employer
As a North Dakota resident, you owe North Dakota income tax on ALL income, regardless of where your employer is located. Employer location does not determine your North Dakota tax obligation.
What this means:
- A North Dakota resident working remotely for a California, New York, or Texas employer owes North Dakota income tax on that income.
- Your employer must withhold North Dakota income tax from wages paid to you as a North Dakota resident, unless the employer is required by the other state to withhold that state’s income tax.
Source: https://www.tax.nd.gov/news/resources/residency/resident
Working in North Dakota, Living in Another State
Nonresidents who perform work physically in North Dakota owe North Dakota income tax on income earned from North Dakota sources. North Dakota taxes nonresidents based on where work is physically performed.
Mobile Workforce Exemption: A nonresident performing employment duties in North Dakota for 20 days or fewer during the tax year may be exempt from North Dakota income tax withholding, provided their home state provides a substantially similar exclusion or does not impose an income tax. Statutory authority: N.D.C.C. § 57-38-59.3.
Source: https://www.tax.nd.gov/news/resources/residency/non-resident
“Convenience of the Employer” Rule
North Dakota does not apply a “convenience of the employer” rule. Nonresidents are taxed only on income from work physically performed in North Dakota. A North Dakota employer’s nonresident remote employees working from another state are not subject to North Dakota income tax on that income.
Reciprocal Agreements
North Dakota has reciprocal agreements with Minnesota and Montana for individual income tax purposes covering wages and salaries.
What reciprocity means:
- A Minnesota or Montana resident working in North Dakota pays income tax only to their home state on wages and salaries — not to North Dakota.
- A North Dakota resident working in Minnesota or Montana pays income tax only to North Dakota on wages and salaries — not to the other state.
- If North Dakota income tax was withheld from a Minnesota or Montana resident’s wages, they must file a North Dakota return to claim a refund.
Exemption certificate: Minnesota and Montana residents working in North Dakota can file Form NDW-R (Reciprocity Exemption from Withholding for Qualifying Minnesota and Montana Residents Working in North Dakota) with their employer to stop North Dakota withholding.
- Minnesota residents working in Minnesota for a North Dakota employer use Form MW-R from the Minnesota Department of Revenue.
- Montana residents use the applicable Montana exemption form.
Coverage: Reciprocity covers wages and salaries only. Other types of North Dakota-source income (business income, rental income, royalties) are not covered by the reciprocal agreements and remain taxable to North Dakota.
Source: https://www.tax.nd.gov/news/resources/residency/non-resident
Source: https://www.tax.nd.gov/news/resources/residency/resident
⚠️ Interstate Tax Risk Indicator
North Dakota remote workers may encounter multi-state taxation complications when their work situation involves other states. States requiring particular attention:
- New York — Applies the “convenience of the employer” rule; may tax income of employees working remotely for New York employers even if work is performed in North Dakota
- California — Aggressive residency audits for extended presence; may assert taxing rights over extended visitors
- Pennsylvania — Over 200 local income tax jurisdictions; nonresidents working in Pennsylvania may owe local taxes
- Connecticut — Applies convenience of employer rule similar to New York
Source: https://www.tax.nd.gov/news/resources/residency/resident and IRS Publication 505
Multi-State Tax Filing
When a North Dakota resident earns income taxable in another state:
- File a North Dakota resident return reporting all income.
- File a nonresident return in the other state for income earned there.
- Claim a credit on the North Dakota return for income taxes paid to the other state.
Form required: Credit for income tax paid to another state or local jurisdiction — claimed on Form ND-1.
Source: https://www.tax.nd.gov/credit-income-tax-paid-another-state-or-local-jurisdiction
Tax Residency vs. Domicile
Domicile Defined
Domicile is your permanent legal home — the place where you intend to return and remain indefinitely. North Dakota tax law uses the term “legal residence” interchangeably with domicile.
Key characteristics of domicile:
- You may have only one domicile at a time.
- Domicile does not change unless you take affirmative steps to establish a new permanent home elsewhere.
- Temporary absences (for work, travel, school, or military service) do not change domicile.
Factors used to establish North Dakota domicile include where you maintain your primary residence, where you register to vote, where you hold a driver’s license, where family resides, and your stated intent in legal documents.
Statutory 7-Month Rule (Residency by Presence)
Even without establishing domicile, a full-year nonresident who maintains a permanent place of abode in North Dakota and is present in the state for more than 210 days in the tax year must file as a full-year North Dakota resident. Exceptions apply for armed forces members and Minnesota/Montana residents covered by reciprocity.
Common Conflict Scenarios
Scenario 1: Snowbird spending winter elsewhere
A North Dakota resident who spends four to five months in Arizona or Florida each winter remains a North Dakota resident for tax purposes, as their domicile remains in North Dakota. They are not subject to the other state’s income tax as a statutory resident (under 183 days in most states).
Scenario 2: Extended work assignment in another state
A North Dakota-domiciled worker on an 8-month assignment in another state with a rented apartment may be treated as a statutory resident of that other state if it has its own presence-based residency rules. The worker remains a North Dakota resident simultaneously, requiring returns in both states with a credit claimed on the North Dakota return.
Military Personnel
Servicemembers Civil Relief Act (SCRA)
Active duty military members stationed in North Dakota due to military orders do not become North Dakota residents solely because of those orders. They pay income tax to their state of legal residence (domicile), not North Dakota, on military pay.
Military Pay Deduction: Beginning with tax year 2023, all military pay received by servicemembers (active duty, National Guard, Reserve) is fully deductible from North Dakota taxable income to the extent it was includable in federal taxable income. This applies to all military pay including bonuses, education, and training pay — not just Title 10 active duty.
Note: The 2025 Legislature (SB 2047) further exempted qualifying military pay from North Dakota income tax withholding provisions beginning with tax year 2026. For 2025 returns, the deduction applies on the tax return.
Source: https://www.tax.nd.gov/news/resources/residency/military-service-members
Military Spouses Residency Relief Act (MSRRA)
Spouses of active duty military can maintain their home state residency and are not taxed by North Dakota on wages earned in North Dakota if:
- The servicemember is in North Dakota under military orders.
- The spouse is present in North Dakota solely to be with the servicemember.
- Both the servicemember and civilian spouse are domiciled outside North Dakota (they do not need to share the same domicile).
For tax years 2018 and after, a civilian spouse who is themselves a North Dakota domiciliary may elect to use the servicemember’s domicile state for tax purposes, if the servicemember is domiciled outside North Dakota.
A civilian spouse claiming this exemption files Form NDW-M with their employer to stop North Dakota withholding.
Military Retirement Pay
Retired members of the U.S. armed forces, Reserve, and National Guard (and their surviving spouses) may deduct the full taxable amount of military retirement benefits from North Dakota taxable income. The deduction equals the amount reported on Form 1040 or Form 1040-SR, line 5b. Attach Form 1099-R from the Defense Finance and Accounting Service (DFAS).
Retirement benefits received for federal civil service as a dual status military technician under Title 10 or Title 32 also qualify.
Source: https://www.tax.nd.gov/news/resources/residency/military-service-members
Source: https://www.tax.nd.gov/sites/www/files/documents/guidelines/individual/military-service-members.pdf
What North Dakota-Domiciled Military Members DO Owe Tax On
North Dakota residents serving in the military owe North Dakota income tax on:
- Non-military income (investment income, rental income, business income)
- Military pay is deductible but the filing requirement still applies if a federal return is required
If the only North Dakota-source income is military pay (for a nonresident servicemember) or military retirement pay (for a retired servicemember with no other ND-source income), no North Dakota return is required.
Source: https://www.tax.nd.gov/news/resources/residency/military-service-members
Retirees
Social Security Benefits
North Dakota partially taxes Social Security benefits. The deduction for Social Security benefits included in federal taxable income is available only if the taxpayer’s adjusted gross income is:
- $50,000 or less — single filers
- $100,000 or less — married filing jointly
Taxpayers above these thresholds owe North Dakota income tax on the taxable portion of Social Security included in federal taxable income. No phased or partial deduction is available above these thresholds — it is all-or-nothing based on the AGI threshold.
Pension Income
Military retirement pay: Fully deductible (see Military Personnel section above).
Peace officer retirement benefits: Beginning with tax year 2023, retirement benefits received from a retirement plan by an individual who retired as a peace officer are fully deductible from North Dakota taxable income.
Federal, state, and local government pensions (non-military, non-peace officer): Generally taxable in North Dakota, following federal treatment. There is no general public pension exemption.
Private pensions and annuities: Taxable in North Dakota, following federal treatment.
U.S. Railroad Retirement Board Tier 1 benefits: Deductible from North Dakota taxable income regardless of income level.
Retirement Account Distributions
401(k) and Traditional IRA distributions: Taxable in North Dakota, following federal treatment. No state-level exemption applies.
Roth IRA: Qualified distributions that are tax-free at the federal level are also not taxable in North Dakota.
Students
College students attending school in North Dakota do not automatically become North Dakota residents for tax purposes.
You remain a nonresident if:
- You maintain legal residence (domicile) in another state.
- Your presence in North Dakota is temporary for educational purposes.
- You intend to return to your home state after graduation.
You owe North Dakota tax only on North Dakota-source income:
- Wages earned from working in North Dakota while a student.
- Business income from North Dakota operations.
Establishing North Dakota residency as a student: Students who take affirmative steps to establish domicile — such as registering to vote in North Dakota, obtaining a North Dakota driver’s license, and demonstrating intent to remain — may become North Dakota residents.
Part-Year Residents
If you moved TO or FROM North Dakota during 2025, you file as a part-year resident.
Income allocation:
- Report income earned while a North Dakota resident (from all sources).
- Exclude income earned while a resident of another state (from non-North Dakota sources).
- North Dakota-source income earned while a nonresident remains taxable.
Moving TO North Dakota: Your North Dakota residency begins on the day you establish domicile in North Dakota. Report all income from that date forward. File a nonresident or part-year return in your former state for income earned before the move.
Moving FROM North Dakota: Your North Dakota residency ends on the day you establish domicile in the new state. Report all North Dakota income through that date.
Form required: Form ND-1 with Schedule ND-1NR (Tax Calculation for Nonresidents and Part-Year Residents)
Documentation Commonly Requested in Residency Audits
North Dakota tax authorities may audit residency determinations. The following documentation types are commonly requested:
Primary residency evidence: Driver’s license, voter registration, vehicle registration, professional licenses.
Physical presence documentation: Day-count logs, travel records, credit card statements showing geographic spending patterns, cell phone records, E-ZPass/toll records.
Property and financial ties: Property ownership records, homestead exemption filings, utility bills, home/rental lease, bank statements.
Social and family connections: Family location records, medical records (where regular care is received), religious affiliation, club memberships.
Employment documentation: W-2 forms, employment contracts, remote work agreements.
Intent documentation: Will and estate documents listing domicile, prior year tax returns, insurance policies.
Burden of Proof: In North Dakota residency disputes, the burden typically falls on the taxpayer to prove non-residency or establish domicile elsewhere.
Common audit triggers:
- Claiming non-residency while maintaining a North Dakota driver’s license
- Owning property in North Dakota while filing as a nonresident
- Family remaining in North Dakota while taxpayer claims another domicile
- Day count near the 210-day (7-month) statutory threshold
- High-income taxpayers claiming nonresident status
Source: https://www.tax.nd.gov/news/resources/residency
Statutory authority: N.D.C.C. Chapter 57-38
Note: This section provides factual information about documentation types commonly requested. It does not constitute legal or tax advice.
Common Tax Filing Situations
Situation: “My employer is in Minnesota, so I don’t owe North Dakota tax.”
North Dakota law: North Dakota residents owe tax on all income regardless of employer location. However, if you are a Minnesota resident working for a Minnesota employer and performing work physically in Minnesota, the reciprocal agreement exempts your wages from North Dakota tax.
Source: https://www.tax.nd.gov/news/resources/residency/resident
Situation: “I’m a North Dakota resident working remotely for a New York employer. Do I owe New York tax?”
Tax law principle: New York applies a “convenience of the employer” rule. If you work remotely for a New York employer for your own convenience (not a business necessity of the employer), New York may tax your income. You would still owe North Dakota income tax as a resident and may claim a credit on your North Dakota return for tax paid to New York.
Source: https://www.tax.nd.gov/news/resources/residency/resident and New York Department of Taxation and Finance
Situation: “I’m a Minnesota resident who crossed into North Dakota for a few days of work.”
North Dakota law: Minnesota residents are covered by the reciprocal agreement for wages and salaries. Your wages remain taxable only by Minnesota, not North Dakota, regardless of how many days you work in North Dakota.
Source: https://www.tax.nd.gov/news/resources/residency/non-resident
Local Income Taxes
North Dakota does not permit local income taxes. Only state-level income tax applies. No city, county, or municipality in North Dakota levies a local income tax on wages, salaries, or other individual income.
Forms & Publications
Primary Tax Return Forms
Resident return (simple):
- Form ND-EZ — North Dakota Individual Income Tax Return (simplified)
- Instructions: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
- Download: https://www.tax.nd.gov/forms
Resident and nonresident/part-year return (standard):
- Form ND-1 — North Dakota Individual Income Tax Return
- Instructions: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
- Download: https://www.tax.nd.gov/forms
Common Schedules
- Schedule ND-1NR — Tax Calculation for Nonresidents and Part-Year Residents (attached to Form ND-1)
- Schedule ND-1TC — Tax Credits (used to claim various credits including the credit for taxes paid to another state)
- Schedule ND-1FC — Family Member Care Credit
- Schedule ND-1PSC — Nonprofit Private School Tax Credits
- Schedule ND-1QEC — Qualified Endowment Fund Tax Credit
- Schedule MCP — Contributions to a Maternity Home, Child Placing Agency, or Pregnancy Help Center
- Schedule ND-1FA — Farm Income Averaging
- Schedule ECC — Employer Child Care Contribution Credit (new for 2025)
Withholding and Exemption Forms
- Form NDW-R — Reciprocity Exemption from Withholding (for Minnesota and Montana residents working in North Dakota)
- Form NDW-M — Military Spouse Withholding Exemption Certificate
- Form 306 — Income Tax Withholding Return (employer)
Estimated Tax Forms
- Form ND-1ES — Individual Estimated Tax Payment Voucher
- Download: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2024-iit/28709-form-nd-1es-2025.pdf
Extension Forms
- Form ND-1EXT — Extension Payment Voucher
Where to Submit Paper Returns
With payment:
Office of State Tax Commissioner
600 E. Boulevard Ave., Dept. 127
Bismarck, ND 58505-0599
Without payment (refund or zero balance):
Office of State Tax Commissioner
P.O. Box 5621
Bismarck, ND 58506-5621
In person (during business hours, 8 a.m. – 5 p.m.):
Office of State Tax Commissioner
State Capitol Building, 8th Floor
600 E. Boulevard Ave.
Bismarck, ND 58505
Source: https://www.tax.nd.gov/forms
Source: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
Information Verification Log
Where to Check for Updates
Current Tax Rate Tables:
https://www.tax.nd.gov/individual-income-tax — Updated annually; 2025 rates published December 2025
Forms Library:
https://www.tax.nd.gov/forms — Search by form name, tax type, tax year, or State Form Number (SFN)
Legislative Changes:
https://www.tax.nd.gov/news/tax-legislative-changes/significant-changes-law/individual-income-tax-history
Tax Bulletins and News:
https://www.tax.nd.gov/news
Email Subscription:
https://www.tax.nd.gov/news/email-sign — Sign up to receive email notifications when newsletters or important information are issued by the Office of State Tax Commissioner
Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates, always consult the official North Dakota Office of State Tax Commissioner website at https://www.tax.nd.gov.
Official North Dakota Income Tax Resources
All information in this guide is compiled exclusively from official government sources.
North Dakota Office of State Tax Commissioner
- Main Website: https://www.tax.nd.gov
- Individual Income Tax: https://www.tax.nd.gov/individual-income-tax
- Tax Forms Library: https://www.tax.nd.gov/forms
- Filing Options (E-File / Free File): https://www.tax.nd.gov/individual (under “Filing a Return”)
- ND TAP (Online Filing and Payment Portal): https://tap.tax.nd.gov
- Tax Credits and Incentives: https://www.tax.nd.gov/income-tax-incentives
- Residency Information: https://www.tax.nd.gov/news/resources/residency
- Resident Rules: https://www.tax.nd.gov/news/resources/residency/resident
- Nonresident Rules: https://www.tax.nd.gov/news/resources/residency/non-resident
- Military Service Members: https://www.tax.nd.gov/news/resources/residency/military-service-members
- Tax Deadlines: https://www.tax.nd.gov/news/resources/tax-deadlines/individual-income-tax-deadlines
- Where’s My Refund: https://tap.tax.nd.gov/?link=RefundLookup
- Guidelines Library: https://www.tax.nd.gov/guidelines
North Dakota Tax Code and Regulations
- North Dakota Century Code, Chapter 57-38 (Individual Income Tax): https://ndlegis.gov/cencode/t57c38.pdf
- Individual Income Tax History: https://www.tax.nd.gov/news/tax-legislative-changes/significant-changes-law/individual-income-tax-history
- North Dakota Legislature: https://ndlegis.gov
Contact Information
Phone (Individual Income Tax): 701-328-1247
General Phone: 701-328-7088
Email: individualtax@nd.gov
Hours: 8 a.m. – 5 p.m., Monday through Friday
Address: 600 E. Boulevard Ave., Dept. 127, Bismarck, ND 58505-0599
Source: https://www.tax.nd.gov/about/contact-us
Free Tax Assistance
Free File (North Dakota):
https://tap.tax.nd.gov — Under Individuals, select “Individual Income Tax Electronic Filing Options” to check eligibility
AARP Tax-Aide (free tax preparation for all taxpayers, with focus on those 50+):
https://www.tax.nd.gov — See the Free Tax Prep section for locations and scheduling
VITA (Volunteer Income Tax Assistance) — IRS program:
https://www.irs.gov/vita — Find free tax preparation sites for eligible taxpayers
TCE (Tax Counseling for the Elderly) — IRS program:
https://www.irs.gov/tce
Tax Glossary
Adjusted Gross Income (AGI): Total income minus specific federal deductions (IRA contributions, student loan interest, etc.). Used in North Dakota to determine eligibility for the Social Security benefit deduction.
Taxable Income (North Dakota): Federal taxable income, adjusted for North Dakota-specific additions and subtractions, to which the North Dakota tax rate schedule is applied.
Resident: An individual whose legal residence (domicile) is North Dakota, or who meets the statutory 7-month rule by maintaining a permanent place of abode in North Dakota and spending more than 210 days in the state.
Nonresident: An individual who did not live in North Dakota for more than 7 months and whose domicile is in another state. Taxed only on North Dakota-source income.
Part-Year Resident: An individual who moved into or out of North Dakota during the tax year, filing a return that covers the period of North Dakota residency.
Domicile: Your permanent legal home — the place you intend to return to indefinitely. Also called “legal residence” in North Dakota tax law.
Reciprocity: North Dakota’s agreements with Minnesota and Montana, under which residents of those states pay income tax to their home state rather than North Dakota on wages and salaries earned in North Dakota.
Withholding: State income tax deducted from wages by an employer and remitted to the state on the employee’s behalf.
Federal Taxable Income: The starting point for computing North Dakota taxable income. North Dakota conforms perpetually to the federal computation.
Tax Credit: A dollar-for-dollar reduction in tax owed (for example, a $500 credit reduces tax by $500).
Filing Status: Category used to determine tax rates and bracket thresholds — Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow(er).
Form ND-1: The standard North Dakota individual income tax return, used by full-year residents, part-year residents, and nonresidents.
Form ND-EZ: A simplified North Dakota individual income tax return for taxpayers with straightforward filing situations (primarily wage income, standard adjustments).
ND TAP: North Dakota Taxpayer Access Point — the state’s secure online portal for filing returns, making payments, checking refund status, and managing tax accounts.
Update History
March 2026 — Initial Publication
- Published comprehensive North Dakota income tax guide (Parts 1–4)
- Tax Year 2025 (returns filed in 2026)
- All sections verified from official North Dakota Office of State Tax Commissioner sources
- Incorporated 2025 legislative changes: Employer Child Care Contribution Credit (SB 2282), OBBBA federal conformity impacts, military withholding exemption effective 2026
Verification Schedule:
- Annual Update: January (new tax year rates and brackets published by NDOTSC)
- Mid-Year Review: June (legislative changes from spring session)
- Continuous Monitoring: Emergency tax legislation, disaster relief extensions
- Source Link Check: Quarterly (all nd.gov URLs verified functional)
Last comprehensive update: March 2026
Next scheduled review: January 2027