North Dakota taxes nothing on the first $48,475 of taxable income and never more than 2.5%. Stack the federal standard deduction on top and a single filer earning under about $64,500 pays no state income tax at all.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
|---|
North Dakota's structure is 0% up to $48,475 of taxable income, 1.95% to $244,825, and 2.5% above. For a married couple the zero band runs to $80,975.
Because North Dakota also includes the federal standard deduction in its starting point, a single filer removes $16,100 before the brackets even begin. The combined effect is that roughly the first $64,575 of gross wages escapes North Dakota income tax entirely — and about $113,175 for a married couple.
That is the most generous entry structure of any state that levies an income tax. The median North Dakota household pays little or nothing, and the 2.5% top rate — tied with Arizona for the lowest in the country — means even high earners face a light burden.
The Red River separates North Dakota from Minnesota, and the tax treatment on either side could hardly be more different. A Minnesotan pays 5.35% from the first taxable dollar; a North Dakotan pays nothing until $48,475.
For two people earning $55,000 doing the same job in Fargo and Moorhead, the state tax difference runs to well over two thousand dollars a year. It is one of the starkest border contrasts in American tax policy, and it is visible in commuting and residency patterns across the Fargo-Moorhead metro.
The two states have no reciprocity agreement covering all situations, so cross-border workers should check their specific circumstances rather than assume.
North Dakota can sustain this because of Bakken oil and gas. Extraction and production taxes on the sector fund a large share of state government, and a constitutionally mandated share flows into the Legacy Fund, a sovereign wealth fund whose earnings supplement the budget.
That structure gives the low-rate position more durability than a simple political commitment would, though it also ties state finances to commodity prices in a way most states are not exposed to.
No North Dakota city or county levies an income tax.
Almost certainly not as a single filer. The federal standard deduction of $16,100 plus the $48,475 zero bracket means roughly the first $64,575 of gross wages is untaxed.
2.5%, tied with Arizona for the lowest top rate of any state that taxes income.
Dramatically lighter. Minnesota taxes 5.35% from the first taxable dollar; North Dakota taxes nothing until $48,475. For a $55,000 earner the difference exceeds two thousand dollars a year.
No city or county levies one.