North Dakota’s corporation income tax rates range from 1.41 percent to 4.31 percent (as of January 2018) of North Dakota taxable income. The state income is determined using an equally weighted three-factor apportionment formula.
North Dakota’s low individual income tax rates are competitive with other states that have an income tax. The rates – ranging from 1.1 percent to 2.9 percent (as of March 2018) – are applied to federal taxable income plus or minus certain state adjustments.
North Dakota exempts all personal property from taxation (except certain oil and gas refineries and utilities). That means no property tax on items like office equipment, inventory, accounts receivable or materials in process. A variety of services are offered by local municipalities that must be considered in conjunction with property tax rates. All local authorities may impose taxes in any given community; thus, tax rates vary for each municipality. The North Dakota Tax Department site gives further information.
In North Dakota, many items that other states tax are exempt from sales tax. For example, natural gas, electricity, most professional services and groceries are not taxed. The North Dakota Tax Department provides information for doing business in the state.
Workers’ compensation provides benefits to injured employees for accidents or occupational diseases arising out of, and in the course of, their employment. Compensation coverage and information can be found with North Dakota Workforce Safety and Insurance.