Taxes

Corporate Income

1.41% – 4.31%

Individual Income

1.1% – 2.9%, the lowest of any state with a broad-based income tax

Sales Tax

State: 5%

Local: 1.75%

Property

Commercial: 1.6% of appraised value

Residential: 1.4% of appraised value

Total Mill rate: 367.71

Exemptions

The State of North Dakota does not levy taxes or provides exemptions on:

  • Personal Property
  • Production
  • Franchise
  • Electric power
  • Natural Gas
  • Water
  • Inventory stored in or transferred through North Dakota
  • Certain machinery for new/expanding industry
  • Computer and telecommunications equipment for a new primary sector business
  • Manufacturers’ raw materials
  • Manufacturing and agriculture co-op industrial building materials for construction

Labor

Workers Compensation

Rates in North Dakota are among the lowest in the U.S. A company’s premium is determined by applying the rate for a job classification to the amount of taxable payroll in the that classification.

The maximum taxable payroll per employee is capped at 70 percent for the stat’s average annual wage, currently $35,600. Discount programs may provide company’s discounts.

Select rate examples (base rate / max per person)

  • Computer, electronic, assembly: $1.12 / $398.72
  • Manufacturing, light metal – nonmetal: $1.96 / $697.76
  • Aircraft Flying Operation: $2.04 / $726.24
  • General Warehouse & Storage: $3.76 / $1,338.56
  • Food Processing: $4.19 / $1,491
Workforce Safety & Insurance 2015 – 16 rates manual

Unemployment Insurance

(2015 rates)

Non-construction: 1.12%
Maxiumum wage cap: $35,600

Right-to-Work

North Dakota is a right-to-work state. Union membership is approximately 5% of the workforce