North Dakota taxes

North Dakota taxes personal income at 0%, 1.95% or 2.5%, starting from your federal taxable income. A sole proprietor owes no separate business fee. An LLC files an annual report for $50, and partnerships and corporations pay $25. C corporations pay corporate income tax at 1.41% on the first $25,000, 3.55% on the next $25,000, and 4.31% on everything above $50,000.

Personal income tax

North Dakota residents file Form ND-1. It starts from your federal taxable income, after the federal standard or itemized deduction, so North Dakota has no deduction or exemption of its own.

The first part of taxable income is taxed at 0%, then 1.95%, then 2.5%. 40% of net long-term capital gains and of qualified dividends is excluded.

Return

Form ND-1

Starts from

Federal taxable income

Single

0% up to $48,475, 1.95% up to $244,825, 2.5% above

Married filing jointly

0% up to $80,975, 1.95% up to $298,075, 2.5% above

Head of household

0% up to $64,950, 1.95% up to $271,450, 2.5% above

Married filing separately

0% up to $40,475, 1.95% up to $149,025, 2.5% above

Capital gains and dividends

40% of net long-term capital gains and qualified dividends excluded

College savings deduction

Up to $5,000, or $10,000 married filing jointly

Marriage penalty credit

Up to $312 for some married couples filing jointly

Sole proprietor

A sole proprietor with no LLC files no annual report and owes North Dakota no business fee.

Your business profit is taxed on your own Form ND-1, at the personal rates above. Forming an LLC would start the $50 annual report.

Single-member LLC

Every North Dakota LLC files an annual report each year to stay in good standing, for $50, due 15 November. It asks about the business, not its finances.

File it through the state's own FirstStop portal. The Secretary of State warns that other companies send official-looking letters about this report, and paying one of them is not the same as filing. The LLC's profit is taxed on your own Form ND-1.

Partnership

A partnership doing business in North Dakota, or with North Dakota income, files Form 58, the North Dakota partnership income tax return, by April 15 for a calendar year.

A partnership pays a $25 annual report fee, due 1 August, whatever it earned.

The profit passes through to the partners, who report it on their own returns.

North Dakota makes a partnership or S corporation withhold North Dakota tax at 2.50% from each nonresident owner's share, unless the share is under $1,000 or the owner joins the business's composite return. The amount is not worked out here, because it needs each owner's residence and share.

S corporation

An S corporation files Form 60, the North Dakota S corporation income tax return. It also pays a $25 annual report fee, due 1 August, earlier than the 15 November date for an LLC.

The profit passes through to the shareholders, who report it on their own returns.

North Dakota makes a partnership or S corporation withhold North Dakota tax at 2.50% from each nonresident owner's share, unless the share is under $1,000 or the owner joins the business's composite return. The amount is not worked out here, because it needs each owner's residence and share.

C corporation

A C corporation files Form 40 by April 15 for a calendar year and pays North Dakota corporate income tax at 1.41% on the first $25,000, 3.55% on the next $25,000, and 4.31% on everything above $50,000 of the profit apportioned to North Dakota.

By default North Dakota averages property, payroll and sales equally to find its share of a multi-state corporation's profit. A corporation can elect to use sales alone, but the choice binds it for five years. It also pays the $25 annual report fee, due 1 August.

Corporate income tax

1.41% on the first $25,000, 3.55% on the next $25,000, and 4.31% on everything above $50,000

Multi-state profit

Property, payroll and sales averaged, or sales alone by a five-year election

Annual report fee

$25, due 1 August

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax North Dakota charges. It assumes all your sales are in North Dakota.

An estimate for planning, not tax advice.

Sources

• North Dakota 2025 Individual Income Tax booklet
• North Dakota Form ND-1, 2025
• sos.nd.gov Maintain Registration (annual report requirement, fee and due date)
• sos.nd.gov news: warning about misleading annual report letters from third parties
• tax.nd.gov 2025 corporation income tax booklet (Forms 40 and 60), Who Must File
• tax.nd.gov 2025 Form 58 Partnership Income Tax instructions
• tax.nd.gov 2025 Form 60 S Corporation Income Tax instructions
• tax.nd.gov 2025 Form 40 (SFN 28714, 12-2025): the printed rate schedule
• tax.nd.gov 2025 Corporate Income Tax Instructions: the equally weighted three-factor formula and the single-sales-factor election

Last reviewed August 2026.