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North Dakota · the numbers
North Dakota figures at a glance, 2026
The North Dakota numbers for the 2026 return in one place: the three rates and where each bracket begins for every filing status, what the tax comes to at a dozen income levels, the subtractions and credits with their dollar limits, the penalty and interest rates, the filing and payment dates, and the property tax figures that sit outside the income tax. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from North Dakota Office of State Tax Commissioner sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a North Dakota practitioner
North Dakota publishes few numbers because its income tax has few moving parts. There are three rates, 0%, 1.95% and 2.5%; four sets of bracket thresholds, one for each filing status, indexed each year; no state standard deduction or exemption, because the return begins at federal taxable income and takes the federal ones with it; and a short list of subtractions and credits, most of them with fixed limits. For 2026 the thresholds moved up and nothing else did. The one figure still unpublished is the marriage penalty credit, whose 2026 worksheet comes out with the 2026 Form ND-1 booklet.
The core figures
| Item | 2026 | Note |
|---|---|---|
| Rates | 0% / 1.95% / 2.5% | Unchanged since tax year 2023 |
| Starting point | Federal taxable income | Form 1040 line 15, entered on Form ND-1 line 1b |
| State standard deduction | None | The federal standard deduction ($16,100 single, $32,200 joint) or federal itemized deductions are already in line 1b |
| State personal exemptions | None | The 0% bracket does the work |
| Social Security exclusion | 100% | Taxable portion from Form 1040 line 6b subtracted on line 15; no income limit |
| Military retirement exclusion | 100% | Line 14; retirees and surviving spouses; attach the 1099-R |
| Military pay exclusion | 100% | Line 11; no state withholding on it from 2026 |
| Net long-term capital gain exclusion | 40% | Line 6, worksheet in the instructions; short-term gains get nothing |
| Qualified dividend exclusion | 40% | Line 13 |
| College SAVE 529 deduction | $5,000 / $10,000 joint | Line 12; per return, not per beneficiary; rollovers excluded |
| Marriage penalty credit, maximum | to come | Line 22; indexed; 2025 maximum about $312 (verify) |
| Local income tax | None | School district and income source codes on the return are for statistics |
The brackets
| Filing status | 0% up to | 1.95% from there to | 2.5% on the rest; tax at that point |
|---|---|---|---|
| Single | $49,575 | $250,400 | $3,916.09 |
| Married filing jointly, qualifying surviving spouse | $82,800 | $304,850 | $4,329.98 |
| Married filing separately | $41,400 | $152,425 | $2,164.99 |
| Head of household | $66,400 | $277,600 | $4,118.40 |
From the 2026 Form ND-1ES. The Department also publishes a tax table for incomes under a set amount; the table and the schedules give the same result. The 2027 thresholds will be indexed again and published late in 2026 with the 2027 Form ND-1ES.
What the tax comes to
| Filing status | Taxable income | Tax | Effective rate |
|---|---|---|---|
| Single | $40,000 | $0 | 0% |
| Single | $60,000 | $203 | 0.34% |
| Single | $100,000 | $983 | 0.98% |
| Single | $150,000 | $1,958 | 1.31% |
| Single | $300,000 | $5,156 | 1.72% |
| Married filing jointly | $80,000 | $0 | 0% |
| Married filing jointly | $100,000 | $335 | 0.34% |
| Married filing jointly | $150,000 | $1,310 | 0.87% |
| Married filing jointly | $250,000 | $3,260 | 1.30% |
| Married filing jointly | $400,000 | $6,709 | 1.68% |
Arithmetic from the 2026 rate schedules, rounded to the dollar. “Taxable income” is the North Dakota figure after the state subtractions, so a couple with $100,000 of federal taxable income that includes $20,000 of taxable Social Security has $80,000 of North Dakota taxable income and owes nothing. Every dollar of a federal deduction is worth 1.95 cents of state tax in the middle band and 2.5 cents in the top one.
Subtractions and credits with limits
| Item | Figure | Where |
|---|---|---|
| Interest on U.S. obligations | 100% | ND-1 line 5 |
| Railroad Retirement Board benefits | 100% | ND-1 line 8 |
| Licensed peace officer retirement benefits | 100% | ND-1 line 9 |
| College SAVE contributions | $5,000; $10,000 married filing jointly | ND-1 line 12 |
| Human organ donor expenses, stillborn child deduction, employer college expense reimbursement, workforce recruitment exclusion, Renaissance Zone income | See the schedule | Schedule ND-1SA, carried to line 16 |
| Credit for income tax paid to another state or its localities | Limited to the North Dakota tax on the same income; one schedule per state | Schedule ND-1CR, line 21 |
| Marriage penalty credit | 2026 figures to come; for 2025, joint taxable income over $81,036 and lower earner’s qualified income over $47,550, maximum about $312 | Worksheet in the booklet, line 22 |
| Adoption credit | 10% of the federal adoption credit, limited to 50% of North Dakota tax (verify) | Schedule ND-1AC and ND-1TC |
| Family member care credit | For care of a qualifying elderly or disabled relative; figures on the schedule | Schedule ND-1FC and ND-1TC |
| Partnership-plan long-term care insurance premium credit | Up to $250; $500 if both spouses are insured (verify) | Schedule ND-1TC |
| Nonprofit private school, endowment fund, planned gift, maternity home and pregnancy center contribution credits | Each on its own schedule; attach the acknowledgment letter | ND-1PSC, ND-1QEC, ND-1PG, Schedule MCP, through ND-1TC |
| State earned income credit, child tax credit, dependent care credit | None |
Penalties, interest and estimates
| Item | Figure |
|---|---|
| Interest on tax paid after April 15 | 1% a month or part of a month, skipping the month the tax was due |
| Penalty, return filed on time but tax unpaid | 5% of the unpaid tax or $5, whichever is greater |
| Penalty, return filed late with tax unpaid | 5% or $5 for the month due, plus 5% for each further month or part, up to 25% |
| Extension interest | 12% a year from April 15 to the date filed or the extended due date, on tax paid with an extended return; no late-filing penalty if filed and paid by the extended date |
| Estimated tax required when | Federal estimates are required, last year’s North Dakota net tax was $1,000 or more, this year’s tax after withholding is expected to be $1,000 or more, and withholding is under the safe harbor |
| Safe harbor | Withholding and estimates of at least 90% of this year’s tax (66⅔% for a qualified farmer) or 100% of last year’s; no higher tier for high incomes |
| Underpayment interest | 12% a year from each installment date, figured on Schedule ND-1UT |
| Refund claim | Generally three years from the original filing date |
| Report a federal change | Amended ND-1 within 90 days of the amended federal return or final IRS determination |
Worked example: one couple, three ways to read the brackets
A married couple, both working, with $140,000 of wages, $8,000 of long-term capital gain and $2,000 of qualified dividends, taking the $32,200 standard deduction.
| Step | Amount |
|---|---|
| Federal taxable income, Form 1040 line 15 and ND-1 line 1b | $117,800 |
| Less 40% of the $8,000 long-term gain, line 6 | −$3,200 |
| Less 40% of the $2,000 qualified dividends, line 13 | −$800 |
| North Dakota taxable income, line 18 | $113,800 |
| First $82,800 at 0% | $0 |
| Next $31,000 at 1.95% | $604.50 |
| Marriage penalty credit, line 22, if both earn above the 2026 threshold | to come |
| North Dakota tax before the credit | $604.50 |
| Effective rate on $150,000 of total income | 0.40% |
Three things show in this one table: the federal standard deduction counts because the return starts from line 15; the 40% exclusions take $4,000 off before any rate applies; and the first $82,800 is free. The marriage penalty credit would reduce the $604.50 further if the lower earner’s wages exceed the 2026 threshold; the 2025 threshold was $47,550.
Filing and payment dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment, Form ND-1ES; qualified farmers may pay the whole year’s estimate on this date |
| March 31, 2027 | Homestead Property Tax Credit application to the county |
| April 1, 2027 (verify) | Expected close of the Primary Residence Credit application window for the 2027 property tax statement (opens January 1) |
| April 15, 2027 | Form ND-1 or ND-EZ and payment due; first 2027 estimated payment; Form ND-1EXT prepayment if extending |
| May 31, 2027 | Renter’s Refund application postmarked to the Department |
| June 15, 2027 | Second 2027 estimated payment |
| September 15, 2027 | Third 2027 estimated payment |
| October 15, 2027 | Extended due date for the 2026 return, and the last day to e-file it through the federal/state program |
The Department’s deadlines page lists the 2026 dates; the 2027 dates above follow the same statutory schedule and will be confirmed when the page is updated. A due date on a weekend or holiday moves to the next business day.
Beyond the income tax
| Item | 2026 |
|---|---|
| Primary Residence Credit (property tax) | Up to $1,600 a year, all ages, no income test, one per household; cannot exceed the tax due; online application January 1 to April 1 |
| Homestead Property Tax Credit, 65+ or disabled | Household income $70,000 or less; income to $40,000 removes 100% of taxable value up to $9,000 ($200,000 true and full value); $40,001 to $70,000 removes 50% up to $4,500 |
| Renter’s Refund, 65+ or disabled | 20% of rent minus 4% of income, maximum $600; income $70,000 or less; heat, water, lights, phone and furniture excluded from rent |
| Estate, inheritance and gift tax | None collected |
| State sales tax | 5%, with local additions |
| Withholding allowance, 2026 tables | $5,050 a year; federal Form W-4, no state certificate |
| Statutory residency | Permanent place of abode in the state and more than 210 days present (the “7-month rule”) (verify) |
| Reciprocity on wages | Minnesota and Montana residents; Form NDW-R to the employer |
What changed from 2025
The bracket thresholds. Indexed upward for 2026 to the figures above. The 2025 figures are in the 2025 booklet’s rate schedules.
Line 1b carries the new federal deductions. Tips, overtime, the $6,000 senior deduction, car-loan interest and the $40,000 SALT cap all reduce federal taxable income and so reduce the North Dakota figure. The 2025 return was the first to carry them; 2026 is the first full year with the matching W-2 reporting.
Military pay withholding ends. From 2026 wages, employers stop withholding North Dakota tax on pay that qualifies for the line 11 exclusion.
Primary Residence Credit, $1,600. Up from $500; the first window at the new amount ran January 1 to April 1, 2026.
Withholding tables. New 2026 tables with a $5,050 allowance.
Marriage penalty credit. Indexed; 2026 figures to come.
Not changed. The rates, the 40% exclusions, the Social Security and military retirement exclusions, the College SAVE limits, the $1,000 estimated tax threshold, the 12% extension and underpayment interest, the absence of state family credits.
Behind the scenes: why so few figures are indexed
The bracket thresholds move each year because the statute ties them to inflation, and the marriage penalty credit moves because its worksheet is built from those same thresholds. Everything else on the return is a percentage (40%, 100%, 10%) or a flat dollar figure fixed in statute ($5,000 for College SAVE, $250 for long-term care premiums, $1,000 for the estimated tax floor), and flat figures do not move unless the Legislature moves them. The Legislature meets in odd years, so the 2026 return carries the 2025 session’s figures and the 2027 return will carry the 2027 session’s. That is why a North Dakota “what changed” list in an even year is mostly bracket arithmetic and whatever Congress did.
What to bring
- Last year’s Form ND-1 or ND-EZ, to compare line by line
- Form 1040 with line 15 final, since every North Dakota figure starts from it
- Form SSA-1099 and Form RRB-1099, for the line 15 and line 8 exclusions
- Form 1099-R for military retirement, to attach for line 14
- Brokerage statements showing net long-term gain and qualified dividends
- College SAVE contribution confirmations
- Each spouse’s W-2 wages and self-employment income separately, for the marriage penalty credit worksheet
- Estimated payment confirmations from ND TAP, with dates
- For a credit for tax paid to another state, that state’s return
Questions people ask
What are the North Dakota tax brackets for 2026?
0% on the first $49,575 of taxable income single ($82,800 joint, $66,400 head of household, $41,400 married filing separately), 1.95% from there to $250,400 ($304,850, $277,600, $152,425), and 2.5% above that.
Is there a North Dakota standard deduction?
No, and none is needed. The return starts from federal taxable income, which already has the federal standard deduction or itemized deductions taken out. There are no state exemptions either; the 0% bracket takes their place.
How much North Dakota tax does a couple with $100,000 of taxable income pay?
$335.40, which is 1.95% of the $17,200 over the $82,800 0% band, before any credits and before the Social Security, capital gain or 529 subtractions that may bring the taxable figure lower.
What is the 2026 marriage penalty credit?
Not yet published. The worksheet figures are indexed and appear in the Form ND-1 booklet for the year. For 2025 the thresholds were $81,036 of joint taxable income and $47,550 of the lower earner’s qualified income.
Is Social Security taxed in North Dakota?
No. Whatever portion is taxable federally is subtracted on line 15, at any income level.
Do I need to make North Dakota estimated payments?
Only if you must make federal estimates, last year’s North Dakota net tax was $1,000 or more, you expect to owe $1,000 or more after withholding this year, and your withholding is under 90% of this year’s tax and 100% of last year’s. Many people who owe federal estimates owe none to North Dakota because the 0% bracket keeps the state tax under $1,000.
Three rates, four thresholds, and a return that starts at line 15
Know where $49,575 and $82,800 fall for your household and most of the North Dakota arithmetic is done.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
- Form ND-1, Individual Income Tax Return (2025 version; 2026 to come)
- Form ND-1ES, 2026 Estimated Income Tax, with the 2026 rate schedules
- 2025 Form ND-1 Booklet, instructions, penalty and interest rules, Marriage Penalty Credit Worksheet
- Schedule ND-1SA, Statutory Adjustments
- Schedule ND-1CR, Credit for Income Tax Paid to Another State or Local Jurisdiction
- Schedule ND-1TC, Tax Credits
- Schedule ND-1UT, Underpayment of Estimated Income Tax
- 2026 Income Tax Withholding Rates and Instructions
Sources and where to check
- Office of State Tax Commissioner: 2026 Form ND-1ES (rate schedules, estimated tax rules and dates)
- Office of State Tax Commissioner: 2025 Form ND-1 Booklet
- Office of State Tax Commissioner: Individual Income Tax Deadlines
- Office of State Tax Commissioner: Marriage Penalty Tax Credit
- Office of State Tax Commissioner: Income Tax Update, Special Session 2021
- Office of State Tax Commissioner: Primary Residence Credit
- Office of State Tax Commissioner: Homestead Property Tax Credit and Renter’s Refund
- Office of State Tax Commissioner: Tax Forms Search