COST OF DOING BUSINESS
Cut Costs Without Compromise
Learn More About Business Operating Costs
The North Dakota economy is robust and consistently ranks in the Top 10 in the US because we take care of business. Since 2009, taxes have been reduced by more than $2.4 billion. Whether you are deciding how to start a business or grow your business, we can support your business plan through a better understanding of taxes and exemptions.
FAST FACTS
Low Taxes, High Value
- Corporate Income
- 1.41% – 4.31%
- Individual Income
- 1% – 2.9%
- Sales Tax
- State: 5%
- Local: 2.25%
- Property
- Commercial: 1.5% of appraised value
- Residential: 1.35% of appraised value
- Average Mill rate (county): 325.19
- 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
- The State of North Dakota does not levy taxes or provides exemptions on:
LABOR COSTS LESS IN GRAND FORKS, ND
- 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 that classification.
- The maximum taxable payroll per employee is capped at 70 percent for the state’s average annual wage, currently $36,400. Discount programs may provide company’s discounts.
- Select rate examples (base rate / max per person)
- Computer, electronic, assembly: $0.96 / $349.44
- Manufacturing, light metal – nonmetal: $1.81 / $658.84
- Aircraft Flying Operation: $1.99/ $724.36
- General Warehouse & Storage: $3.28 / $1,193.92
- Food Processing: $3.08/ $1,121.12
- Unemployment Insurance
- Non-construction: 1.21% (2019)
- Maximum wage cap: $36,400 (2019)
- Right-To-Work
- North Dakota is a right-to-work state. Union membership is approximately 5% of the workforce.
TAXES
LABOR
TAXES
Low Taxes, High Value
- Corporate Income
- 1.41% – 4.31%
- Individual Income
- 1% – 2.9%
- Sales Tax
- State: 5%
- Local: 2.25%
- Property
- Commercial: 1.5% of appraised value
- Residential: 1.35% of appraised value
- Average Mill rate (county): 325.19
- 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
- The State of North Dakota does not levy taxes or provides exemptions on:
LABOR
LABOR COSTS LESS IN GRAND FORKS, ND
- 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 that classification.
- The maximum taxable payroll per employee is capped at 70 percent for the state’s average annual wage, currently $36,400. Discount programs may provide company’s discounts.
- Select rate examples (base rate / max per person)
- Computer, electronic, assembly: $0.96 / $349.44
- Manufacturing, light metal – nonmetal: $1.81 / $658.84
- Aircraft Flying Operation: $1.99/ $724.36
- General Warehouse & Storage: $3.28 / $1,193.92
- Food Processing: $3.08/ $1,121.12
- Unemployment Insurance
- Non-construction: 1.21% (2019)
- Maximum wage cap: $36,400 (2019)
- Right-To-Work
- North Dakota is a right-to-work state. Union membership is approximately 5% of the workforce.
STAY INFORMED
Stay up to date with the latest information from the Grand Forks Region Economic Development Corporation.
CONTACT US
Want to learn more? Reach out to our team for additional resources and answers to your questions.
Kevin Hatcher
Business Development Manager
Phone: 701.746.2724
Email: KevinH@grandforks.org