State income tax is determine based on five different income brackets in North Dakota, at rates ranging from 1.51% to 3.99%.
Single Taxpayers
Single taxpayers and married couples filing separately are taxed at the following rates:
- 1.22 % on the first $36,250 of taxable income
- 2.27 % applied to taxable income between $36,251 and $87,850
- 2.52 % applied to taxable income between $87,851 and $183,250
- 2.93 % applied to taxable income between $183,251 and $398,350
- 3.22 % on taxable income of $398,351 and higher
Married Filing Jointly
Married taxpayers who file a single return together are assessed tax rates of:
- 1.22 % on the first $60,650 of taxable income
- 2.27 % applied to taxable income between $60,651 and $146,400
- 2.52 % applied to taxable income between $146,401 and $223,050
- 2.93% applied to taxable income between $223,051 and $398,350
- 3.22 % applied to taxable income of $398,351 and greater
Anyone who lives in the state that is of Native American descent are not subject to tax, and therefore aren’t required to file a state return, provided they meet specific criteria. Otherwise, tax returns are due by April 15th or the next business day should the deadline fall on a weekend or holiday.
North Dakota Residents
Anyone who is domiciled in the state is considered a resident. Residency status can also be claimed if one does not have a domicile in North Dakota, but has maintained a permanent stature in the state and has physically spent more than 210 days, or seven months of the tax year in-state.
By North Dakota law, your domicile is your residence and is the place you return to from business or vacation, or other absences. If you have multiple residences, only one can be considered your domicile, which is related to your intent to return and your actions. If you’ve been present in North Dakota the entire year, then you are considered a full-year resident for tax purposes.
Even if you aren’t domiciled in the state for any part of the tax year, the law requires that anyone you maintains a permanent dwelling in-state, and has spent over seven months there, be considered a resident of North Dakota. A permanent dwelling can be an apartment, house, room, or other facility with bathroom and cooking amenities that suits year round living regardless of whether or not you own the property.
Military personnel who are stationed in North Dakota, resident of Minnesota or Montana that are covered under income tax reciprocity agreements, and individuals who moved in or out of North Dakota throughout the tax year and required a change of legal residence are not subject to the 210 day rule.
Any income earned outside of North Dakota is still subject to state income tax rules and must be reported on the tax return. North Dakota income tax is applicable on all income received, regardless of where it was earned.
