Calculate your net paycheck in North Dakota after federal taxes, the 2.5% top state income tax rate, and FICA deductions. Formula shown, sources cited β no account required.
North Dakota runs a graduated income tax with a top marginal rate of just 2.5% β one of the lowest state income tax rates in the entire country. Most residents pay well below that top rate, and the median earner at $77,871 annually faces an effective state rate closer to 1.5β2%. After state and federal taxes, take-home pay in North Dakota is among the highest relative to gross income of any state that imposes income tax at all. The cost-of-living index of 91.1 means everyday expenses run nearly 9% below the national average, stretching each dollar further than the raw salary number implies. Energy sector wages in the Williston Basin and Bakken region can push household incomes well above the median, but those jobs also come with high living costs in remote areas. For office workers and professionals in Fargo and Bismarck, the combination of low taxes and below-average costs creates strong real purchasing power. Run the salary calculator to see exactly how North Dakota's low rates affect your take-home pay.
How Paycheck Taxes Work in North Dakota
Every paycheck in North Dakota is subject to federal income tax, FICA (Social Security at 6.2% and Medicare at 1.45%), and North Dakota state income tax of up to 2.5%.
The median household income in North Dakota is $77,871/year. At that income level, a single filer faces a federal effective tax rate of roughly 12β15%, plus FICA of 7.65%, plus state taxes of a few percent.
North Dakota vs. National Average
| Tax | North Dakota | National |
|---|
| State Income Tax (top rate) | 2.5% | ~5.5% avg |
| Federal Income Tax (median earner) | ~12% | ~12% |
| FICA (SS + Medicare) | 7.65% | 7.65% |
| Cost of Living Index | 91.1 | 100 |