North Dakota — Personal Income Tax

North Dakota imposes a personal income tax on every resident and nonresident individual, estate, and trust for each taxable year upon income earned or received in that taxable year.

Filing requirements for residents: A North Dakota resident must file a state individual income tax return if (1) the resident is required to file a federal income tax return for the year, or (2) the resident receives income derived from North Dakota sources. This means a resident without a federal filing requirement generally does not need to file a North Dakota return unless they receive income attributable to North Dakota sources (for example, rental income, business, or farm income located in North Dakota). The filing obligation is therefore linked primarily to the federal filing requirement, except for income sourced in North Dakota.

Filing requirements for nonresidents: A nonresident must file a North Dakota individual income tax return if (1) required to file a federal return and (2) receives income from North Dakota sources, such as wages, rents, royalties, or business income earned in the state.

Part-year residents: Part-year residents who move into or out of North Dakota and change legal residence are required to report income earned during their period of residency, plus any North Dakota-source income received as nonresidents.

The tax calculation begins with federal taxable income as computed under the Internal Revenue Code of 1986, as amended, with specific adjustments provided by North Dakota law.

Source: North Dakota Office of State Tax Commissioner – Individual Income Tax; North Dakota Office of State Tax Commissioner – Tax Types

North Dakota imposes a progressive income tax with three marginal rates: 0%, 1.95%, and 2.50%. The tax is calculated by multiplying North Dakota taxable income by the applicable rate schedule corresponding to the taxpayer's filing status. Separate rate schedules apply for single filers, married filing jointly, head of household, married filing separately, and qualifying surviving spouses. The tax commissioner adjusts the income bracket thresholds annually for inflation.

Source: N.D. Cent. Code § 57-38-30.3; North Dakota Office of State Tax Commissioner – Individual Income Tax History

North Dakota defines "resident" for personal income tax purposes under two alternative tests: domicile or the statutory seven-month rule. Under N.D. Cent. Code § 57-38-01(11), a natural person is a resident if either (1) the person is domiciled in North Dakota, or (2) the person maintains a permanent place of abode in the state and spends more than seven months (in the aggregate) of the income year within the state.

Domicile test. Domicile means a person's permanent home to which the person always intends to return when absent. Legal residence is based on intent and actions. If a person has more than one physical place of abode, only one may be the person's legal residence. A domicile once established is presumed to continue until the taxpayer demonstrates it has changed. The North Dakota Office of State Tax Commissioner follows this common-law understanding in its published guidance.

Statutory seven-month rule. A person not domiciled in North Dakota nevertheless becomes a resident if two conditions are met: (1) the person maintains a permanent place of abode in the state, and (2) the person spends in the aggregate more than seven months (that is, more than 210 days) of the income year in North Dakota. This rule can make a person a resident of North Dakota for income tax purposes even though domiciled elsewhere. "Permanent place of abode" is not defined in the statute but is understood to mean a dwelling that is maintained on an ongoing basis, as distinct from temporary or seasonal lodging.

Military exception. A full-time active duty member of the armed forces assigned to a military installation in North Dakota, or the member's spouse, is not treated as a resident of North Dakota solely by reason of being stationed in the state. This statutory exception appears in the same definitional subsection and prevents military service alone from creating North Dakota residency under either prong.

Practical effect. Residents are taxed on all income regardless of source. Nonresidents are taxed only on income from North Dakota sources. Part-year residents who move into or out of North Dakota during the tax year report income earned while a resident plus any North Dakota-source income earned while a nonresident. The residency determination made under § 57-38-01(11) controls which filing category and sourcing rules apply.

Source: N.D. Cent. Code § 57-38-01(11); 2022 North Dakota Individual Income Tax Booklet, Office of State Tax Commissioner

North Dakota individual income tax returns are due on or before April 15 following the close of the calendar year. Taxpayers may obtain an extension of time to file by receiving a federal extension (federal Form 4868) or by filing a North Dakota extension request. If a federal extension is granted, North Dakota automatically honors it and no separate state extension form is required. Extensions move the filing deadline to October 15, but any tax owed must still be paid by the original April 15 deadline to minimize interest charges.

Interest on Late Payment: North Dakota applies a two-tiered interest structure to unpaid tax when a filing extension has been granted:

• During the extension period (April 15 through October 15): Interest accrues at a rate of 12% per annum on any unpaid tax, beginning from the original due date (April 15) and continuing through the earlier of the extended due date (October 15) or the date payment is received.
• After the extension period (beginning with November 1): Interest accrues at a rate of 1% per month or fraction of a month on any unpaid balance, starting with the month following the extended due date and continuing until paid.

This statutory structure is confirmed by both the North Dakota Office of State Tax Commissioner and the North Dakota Century Code. Taxpayers are encouraged to pay their estimated balance due by the original deadline to minimize accruing interest.

Source: North Dakota Office of State Tax Commissioner – Filing an Extension Source: N.D. Cent. Code § 57-38-45

North Dakota requires every employer making payment of wages to employees to deduct and withhold state income tax if those wages are subject to federal income tax withholding. An employer must register for a withholding account with the Office of State Tax Commissioner if both of the following apply: the employer has one or more employees working in North Dakota, and the wages are subject to federal income tax withholding. Employers withhold a percentage of the federal income tax amount as determined by the tax commissioner, which approximates the state income tax due. The tax commissioner may adopt tax tables that, when followed, will as closely as possible pay the income tax liability imposed under North Dakota law.

Source: N.D. Cent. Code § 57-38-59; North Dakota Office of State Tax Commissioner – Income Tax Withholding

North Dakota allows married couples filing a joint return a nonrefundable income tax credit designed to reduce the "marriage penalty" that can occur when two wage earners face a higher combined tax liability filing jointly than they would as two single individuals. The credit is capped at $300 per couple and is adjusted annually for inflation by the tax commissioner at the same time and rate that adjustments are made to the income tax rate schedules under N.D. Cent. Code § 57-38-30.3(1)(g).

Statutory framework. The marriage penalty credit is codified at N.D. Cent. Code § 57-38-01.28. It is available to married couples filing a joint return under § 57-38-30.3 when both spouses have "qualified income" and their joint North Dakota taxable income and the qualified income of the spouse with the lower qualified income exceed certain threshold amounts embedded in the credit formula. The credit is nonrefundable and reduces North Dakota income tax liability dollar-for-dollar up to the inflation-adjusted maximum.

Qualified income definition. Under § 57-38-01.28(4)(a), "qualified income" means the sum of (1) earned income as defined in Internal Revenue Code section 32(c)(2)—which includes wages, salaries, tips, other employee compensation, and net earnings from self-employment—and (2) certain annuity, pension, and retirement income, to the extent each is included in North Dakota taxable income. The statute cross-references the federal definition of earned income and incorporates additional retirement-related income streams. Both spouses must have qualified income for the credit to apply.

Credit calculation. The credit formula compares the couple's actual tax under the married-filing-jointly rate schedule against a hypothetical two-step computation under the single-filer rate schedule. Specifically, the credit equals the difference between (a) the tax on the couple's joint North Dakota taxable income under the married-filing-jointly rates in § 57-38-30.3(1)(b), and (b) the sum of (i) the tax under the single-filer rates in § 57-38-30.3(1)(a) on the qualified income of the lesser-earning spouse, plus (ii) the tax under the single-filer rates on the couple's joint North Dakota taxable income minus the qualified income of the lesser-earning spouse. If this difference is positive and does not exceed the inflation-adjusted cap, it is the allowed credit. If the calculation yields zero or a negative number, no credit is available. The North Dakota Office of State Tax Commissioner publishes a Marriage Penalty Credit Worksheet annually in the instructions to Form ND-1, which sets forth the inflation-adjusted maximum credit and threshold amounts for the applicable tax year.

Nonresident and part-year resident adjustment. For nonresident or part-year resident couples, § 57-38-01.28(3) requires that the credit be adjusted based on the percentage of income attributable to North Dakota, calculated under § 57-38-30.3(1)(f). This apportionment ensures that the credit reflects only the North Dakota portion of the couple's income and prevents the credit from offsetting tax on income not sourced to the state.

Inflation indexing. The maximum credit amount and the threshold amounts within the credit formula are indexed for inflation annually. Section 57-38-01.28(1) directs the tax commissioner to adjust the maximum credit "each taxable year at the time and rate adjustments are made to rate schedules under subdivision g of subsection 1 of section 57-38-30.3." Because of this annual indexing, both the maximum credit and the income thresholds triggering eligibility change each year. The current maximum and thresholds for a given tax year are published in the instructions to Form ND-1.

Where the credit is claimed. The credit is claimed on the individual income tax return and reduces the taxpayer's North Dakota income tax liability after the application of tax rate schedules but before other credits. Section 57-38-30.3 lists the marriage penalty credit among the credits allowable against individual income tax.

Source: N.D. Cent. Code § 57-38-01.28; N.D. Cent. Code § 57-38-30.3; North Dakota Office of State Tax Commissioner – Marriage Credit

Summary rule: For nonresidents or part-year residents of North Dakota—such as individuals who move into or out of the state during the year and owe estimated tax—penalties for underpayment of estimated tax are governed by the same safe harbor and waiver provisions as for full-year residents, but with critical nuances for people with mid-year moves or cross-border income changes.

Safe harbor standards: Under N.D. Cent. Code § 57-38-62, an individual is not subject to penalty for underpayment of estimated tax if total timely estimated payments (including withholding and credits) equal or exceed the lesser of:

• 90% of current-year North Dakota tax due, or
• 100% of prior-year North Dakota tax (if return covered all 12 months).

If a taxpayer only becomes a resident or incurs North Dakota-source income partway through the year, and had no North Dakota filing requirement or income in the prior year, only the 90% of current-year safe harbor is applicable. Department guidance (Form ND-1ES instructions) states: "If you did not have North Dakota income prior to moving to or earning income in North Dakota, use only the 90 percent rule when estimating your required payment."

Waiver of penalty/interest: N.D. Admin. Code § 81-03-04-02 provides additional relief. No underpayment interest (penalty) is assessed if:

• The underpayment is less than $500, or
• The taxpayer used the federal annualized income installment method and the final payments match actual income timing, or
• Underpayment was due to casualty, disaster, or unusual circumstance (by commissioner determination).

Refunds of overpayment: If a taxpayer overpays estimated tax (e.g., due to mistaken expectation of ND income or status), the excess may be refunded or credited to the following year when the return is filed—there is no penalty if overpayment occurred in good faith and all statutory payment timing was met.

Practical note: Taxpayers whose ND source income arises after quarterly estimated tax due dates should calculate required payments using actual ND income earned to date, and make required installments by the next due date after triggering the threshold, as described in ND-1ES instructions. There is currently no requirement to make payments before first being subject to North Dakota tax.

Relevant authority and guidance:

• North Dakota Century Code § 57-38-62 (safe harbor)
• N.D. Admin. Code § 81-03-04-02 (waiver scenarios)
• Form ND-1ES 2026 Instructions (official agency guidance)

Source: N.D. Cent. Code § 57-38-62 Source: N.D. Admin. Code § 81-03-04-02 Source: 2026 Form ND-1ES Instructions

Not yet human confirmed.

North Dakota does not provide a separate state-level standard deduction or personal exemptions for individual income tax. Instead, North Dakota law computes state taxable income starting with the taxpayer’s federal taxable income as defined under the Internal Revenue Code. The federal taxable income already reflects the federal standard deduction and any federal personal exemptions available for the year. North Dakota law does not authorize a standalone state standard deduction or state-level personal exemption for any filing status.

Federal conformity and income calculation

• North Dakota individual income tax is based on the federal taxable income amount, which incorporates the taxpayer’s choice of the federal standard deduction or itemized deductions, as well as the repeal of personal exemptions beginning with the 2018 tax year under federal law.
• North Dakota law allows for certain adjustments (additions or subtractions) to federal taxable income, but these do not include a distinct state-level standard deduction or personal exemption.

No state inflation indexing

• Because North Dakota does not set a separate state standard deduction or personal exemption, there is nothing to index for inflation at the state level. Any changes to the amount of federal standard deduction or the treatment of personal exemptions by Congress will flow through to North Dakota taxpayers via the federal taxable income starting point.

Summary

• There are no North Dakota personal exemption or standard deduction amounts to report by filing status.
• No such amounts are indexed for inflation at the state level.

Source: N.D. Cent. Code § 57-38-01 (definition of taxable income); § 57-38-22.1 (conformity to federal deductions)

North Dakota maintains wage income tax reciprocity agreements with Minnesota and Montana.

States covered North Dakota has reciprocity agreements with Minnesota and Montana for wages earned. Residents of Minnesota or Montana who perform personal or professional services (e.g., wages, salaries, commissions) in North Dakota are exempt from North Dakota income tax withholding; instead, their state of residence may tax those wages.

Withholding Exemption Requirements Employees residing in Minnesota or Montana who earn wages in North Dakota may claim exemption from North Dakota withholding by submitting Form NDW‑R — Reciprocity Exemption from Withholding for Qualifying Minnesota and Montana Residents Working in North Dakota — to their employer. The form must be submitted by February 28, or within 30 days of beginning employment or changing permanent residency. The form must then be mailed to the ND Office of State Tax Commissioner on or before March 31. Additionally, Minnesota residents must certify they return to their Minnesota residence at least once per month to qualify. The exemption must be renewed annually by submitting a new Form NDW‑R.

Filing Requirements if Withholding Occurred If withholding occurred because Form NDW‑R was not filed timely, the individual may file a North Dakota nonresident income tax return to obtain a refund. Similarly, North Dakota residents working in Minnesota or Montana and subject to withholding must file a nonresident return in the respective state to claim a refund.

Reporting on the North Dakota Return When filing Form ND‑1, North Dakota residents earning wages covered under reciprocity must complete the “MN/MT Reciprocity” section, indicate either "MN" or "MT", and follow the instructions for claiming exemption.

Source: North Dakota Office of State Tax Commissioner – Income Tax Withholding; Form NDW‑R description and deadline; 2024 Form ND-1 Instructions

North Dakota allows an individual taxpayer (as well as trusts and estates) to subtract 40% of their net long-term capital gain and qualified dividend income from federal taxable income when computing North Dakota taxable income. This exclusion applies to both residents and nonresidents subject to North Dakota income tax on this category of income.

Statutory basis and scope. The exclusion is set out in N.D. Cent. Code § 57-38-01.33. For taxable years beginning after December 31, 2022, a taxpayer may subtract 40% of: (1) the net long-term capital gain included in federal taxable income, and (2) qualified dividend income (generally as defined under IRC § 1(h)(11)). Short-term capital gains and ordinary dividends are not eligible. Net long-term capital gain is specifically limited to amounts included in federal taxable income under the Internal Revenue Code. The subtraction is an annual dollar amount, not subject to a cap for most individuals, but may be limited in the case of certain trusts and estates by reference to distributable net income.

Computation method. The taxpayer first computes federal taxable income—including net long-term capital gain and qualified dividends—then applies the North Dakota subtraction equal to 40% of the amount of such income included in the federal taxable income. The remaining 60% (and all other income) is subject to North Dakota tax at the normal rates. The subtraction is claimed directly on Form ND-1, with supporting schedules or worksheets as required.

Effective date. The exclusion applies to taxable years beginning after December 31, 2022, so the first tax year for which it applies is calendar year 2023 (filed in 2024).

Administrative guidance. The North Dakota Office of State Tax Commissioner confirms this exclusion and its computation in the official individual income tax instructions (Form ND-1, Schedule ND-1SA, and the Individual Income Tax Booklet). These instructions echo the statutory scheme and clarify that only "net long-term capital gains and qualified dividend income included in federal taxable income" may be used in the calculation, in parallel with the federal rules and definitions.

Source: N.D. Cent. Code § 57-38-01.33; 2023 North Dakota Individual Income Tax Booklet, p. 3, 8, 13, Schedule ND-1SA

North Dakota allows individuals to subtract from North Dakota taxable income the amount of Social Security benefits that were included in federal adjusted gross income under Internal Revenue Code § 86. For tax years beginning on or after January 1, 2021, the subtraction is available to all taxpayers regardless of income, as provided by N.D. Cent. Code § 57-38-30.3(2)(t). For tax years 2019 and 2020, the subtraction was limited to taxpayers with federal adjusted gross income below $50,000 (single, head of household, qualifying widow(er)) or $100,000 (married filing jointly). These AGI limits were removed starting with tax year 2021, allowing a full subtraction for all residents regardless of income level.

Legal classification:

• Social Security benefits that are included in federal taxable income (as calculated per IRC § 86) may be fully subtracted from North Dakota taxable income for tax years 2021 and onward.
• The subtraction appears as a line item adjustment on Form ND-1 and referenced tax booklets.
• This treatment is anchored by state statute, which incorporates and then allows the subtraction from the federal income start point.

Effective dates:

• Exclusion with AGI limits: Tax years 2019 and 2020
• Full exemption (no AGI limits): Tax years starting after December 31, 2020 (2021 and later)

Source: N.D. Cent. Code § 57-38-30.3(2)(t) Source: North Dakota Office of State Tax Commissioner – Individual Income Tax History (see Social Security Deduction)

North Dakota applies its personal income tax using three marginal rates (0%, 1.95%, and 2.50%), with bracket thresholds that differ by filing status and are adjusted for inflation each year under N.D. Cent. Code § 57-38-30.3.

2025 Bracket Thresholds (latest DOR release as of June 16, 2026):

• Single & Married Filing Separately:
• 0% on taxable income up to $48,475
• 1.95% on taxable income over $48,475 up to $244,825
• 2.50% on taxable income over $244,825

• Married Filing Jointly & Qualifying Surviving Spouse:
• 0% on taxable income up to $96,950
• 1.95% on taxable income over $96,950 up to $489,650
• 2.50% on taxable income over $489,650

• Head of Household:
• 0% on taxable income up to $72,700
• 1.95% on taxable income over $72,700 up to $367,100
• 2.50% on taxable income over $367,100

Annual Inflation Adjustment: Statute requires the tax commissioner to increase each threshold annually based on the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U), as described in N.D.C.C. § 57-38-30.3(1)(g). The Department of Revenue generally publishes the coming tax year's bracket adjustments by late summer or fall prior to the filing season.

2026 Bracket Note: As of June 16, 2026, the finalized inflation-adjusted thresholds for tax year 2026 have not yet been published by the DOR. For the most current bracket values, practitioners should check the DOR’s official bracket page (https://www.tax.nd.gov/individual-income-tax) and review annual instructions or posted forms.

Where to find annual thresholds:

• The DOR’s main income tax page hosts annual bracket schedules and tax booklets.
• Statutory mechanism is in N.D. Cent. Code § 57-38-30.3.

Source: N.D. Cent. Code § 57-38-30.3 Source: North Dakota Office of State Tax Commissioner – 2025 Individual Income Tax Brackets

North Dakota law treats an individual as a resident for income tax purposes if the person maintains a permanent place of abode in the state and spends, in the aggregate, more than seven months (i.e., more than 210 days) of the income year in North Dakota (N.D. Cent. Code § 57-38-01(11)).

What the statute says The statute specifies the more-than-seven-months threshold but does not address how to count days—whether partial days or travel days count, how non-contiguous stays are aggregated, or whether a minimum number of hours is required for a day to count.

General time computation rule North Dakota's general rule of statutory construction states that, unless otherwise provided, "whole days are intended, namely, the whole period of twenty-four hours from midnight to midnight. Fractions of a day are disregarded in computations which include more than one day" (N.D. Cent. Code § 1-01-33). The residency statute does not expressly incorporate or modify this default rule; its application to the seven-month test is inferred by proximity, not by direct reference in the statute or regulation.

No agency or regulatory guidance No formal or informal guidance from the North Dakota Office of State Tax Commissioner was located addressing whether partial or travel days count toward the statutory residency-day threshold, or how aggregation should be performed. No further direction was found in the Administrative Code or official DOR publications.

Summary

• "More than seven months" means over 210 days present, but the counting method for days (midnight-to-midnight, partials, travel, etc.) is not defined by statute, regulation, or agency statement.
• The general statutory construction rule disregards fractions of a day unless otherwise provided, but its direct application to tax residency has not been confirmed in primary authority specific to income tax.
• Unable to confirm agency or judicial interpretation as of 2026-07-02.

Source: N.D. Cent. Code § 57-38-01(11) Source: N.D. Cent. Code § 1-01-33

North Dakota residents who are subject to income tax by another state on the same income may be eligible for a credit against their North Dakota personal income tax for the tax paid to the other state. This credit is designed to prevent double taxation of the same income by multiple states.

Legal framework. The statutory credit appears in N.D. Cent. Code § 57-38-01.21. It applies when a North Dakota resident pays income tax to another U.S. state (but not to a foreign country or a political subdivision, unless specifically allowed by regulation) on income that is also subject to North Dakota tax. The credit is nonrefundable and limited to the lesser of (1) the tax actually paid to the other state or (2) the North Dakota tax liability on the same income. If a taxpayer has income taxed by more than one other state, the credit is computed separately for each state.

Key limitations.

• The credit is allowed only for income tax paid to another state on income that is also taxed by North Dakota as part of the resident’s North Dakota taxable income.
• The credit cannot exceed the proportion of North Dakota tax attributable to the same income.
• No credit is available for taxes paid to a city or local government, or for taxes paid to a foreign country (unless otherwise allowed by regulation).
• The amount of credit must be reduced by any refund or other reimbursement of tax by the other state.
• The credit must be claimed on the taxpayer’s North Dakota individual income tax return (Form ND-1, Schedule ND-1CR); supporting documentation showing payment of tax to the other state is required.

Calculation and claim process. The credit is calculated on a state-by-state basis. Taxpayers complete Schedule ND-1CR for each state to which tax was paid. The form instructions provide a worksheet for apportioning the North Dakota liability when only part of the income is taxed by the other state. Documentation required typically includes a copy of the other state’s tax return and evidence of tax paid. The credit is claimed after regular tax is computed and applied as a direct reduction in North Dakota tax liability.

Reciprocity states. The credit for taxes paid to other states is generally not needed for residents with Minnesota or Montana wage income due to North Dakota’s wage income tax reciprocity agreements with those states. In such cases, withholding adjustments or refunds are handled through reciprocity procedures instead of the credit mechanism.

Source: N.D. Cent. Code § 57-38-01.21 Source: 2025 North Dakota Individual Income Tax Booklet, Schedule ND-1CR

North Dakota residents who pay income tax to another U.S. state on income that is also subject to North Dakota tax are eligible for a credit to prevent double taxation of that income.

Eligibility To qualify, the taxpayer must be a North Dakota resident for the tax year, have paid a net income tax (not property or excise tax) to another state or the District of Columbia, and the income taxed must be included in North Dakota taxable income. No credit is allowed for taxes paid to a city, local government, or foreign country. The credit does not generally apply to wages earned in Minnesota or Montana due to income tax reciprocity agreements.

Calculation Method The credit is the lesser of: (1) the tax actually paid to the other state, or (2) the portion of North Dakota tax attributable to the same income. If tax was paid to more than one state, compute a separate credit per state. The calculation requires apportioning North Dakota tax to the out-of-state income using a standard formula described in Schedule ND-1CR and the North Dakota Administrative Code. Any refund or reimbursement received from the other state reduces the eligible credit amount.

Claiming Procedure

• Complete Form ND-1, and attach Schedule ND-1CR for each state to which tax was paid.
• Include a copy of the other state’s completed return and proof of payment.
• Follow the worksheet in Schedule ND-1CR instructions to compute the maximum allowable credit for each other state.
• Enter the credit after regular tax calculation; it reduces the total North Dakota tax liability, but cannot exceed the North Dakota tax on the same income.
• Credit claims must be made within the standard period for amending a North Dakota return for that year.

Special rules:

• Part-year residents may only claim the credit for tax paid to another state on income earned while they were North Dakota residents.
• No double benefit: If the income or tax is also claimed as a deduction, the credit cannot be claimed on the same amount.

Primary authority:

• The detailed calculation method, eligible taxes, limitation formula, and other conditions are set by N.D. Cent. Code § 57-38-01.21 and specified in North Dakota Administrative Code § 81-03-02.1-01.
• Official DOR instructions for Schedule ND-1CR provide line-by-line calculation and documentation requirements.

Source: N.D. Cent. Code § 57-38-01.21 Source: N.D. Admin. Code § 81-03-02.1-01 Source: 2025 North Dakota Individual Income Tax Booklet, Schedule ND-1CR

North Dakota personal income tax bracket thresholds and the maximum marriage penalty credit are adjusted annually for inflation by the Office of State Tax Commissioner, as mandated by N.D. Cent. Code § 57-38-30.3(1)(g) (for brackets) and § 57-38-01.28(1) (for the marriage credit).

Statutory adjustment mechanism:

• The income bracket thresholds for each filing status are increased by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the preceding 12-month period ending August 31. This adjustment is calculated each fall for use in the coming tax year. The same percentage adjustment also applies to the annual cap on the marriage penalty credit, ensuring the limit tracks inflation.

Where to find the latest figures:

• The Office of State Tax Commissioner publishes the current and upcoming year’s bracket thresholds and maximum marriage penalty credit:
• On its Income Tax webpage, typically in the form of bracket charts or press releases
• In official North Dakota Individual Income Tax Booklet for each tax year (see summary charts early in the booklet and the detailed worksheet for the marriage penalty credit)
• In the ND-1 instructions issued by the DOR for each filing season

2025 published amounts (latest available as of June 2026):

• Bracket thresholds for all filing statuses for tax year 2025 are detailed in the published bracket section (see here); finalized amounts for tax year 2026 will be posted once the inflation adjustment is completed (typically by late summer or early fall before the filing year).
• The maximum marriage penalty credit for 2025, as published in the 2025 instructions, is $314 per return (subject to indexing for 2026; practitioners should check the newest ND-1 instructions for the current-year amount).

How practitioners confirm rates/credit:

• Always reference the DOR’s Income Tax page for the current-year schedule.
• Review the relevant tax year’s ND-1 instructions or North Dakota Individual Income Tax Booklet, which shows both the adjusted brackets and the marriage penalty credit worksheet/cap on its summary page(s).
• Do not rely solely on statutory language for current-year figures; annual amounts are valid only as published by the commissioner following the statutory adjustment.

Source: N.D. Cent. Code § 57-38-30.3 Source: N.D. Cent. Code § 57-38-01.28 Source: North Dakota Office of State Tax Commissioner – Individual Income Tax Source: 2025 North Dakota Individual Income Tax Booklet, ND-1 instructions