Taxation in North Dakota

Updated on Tuesday 27th November 2018

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The progressive income tax in North Dakota is one of the lowest in the USA, being in the attention of foreign entrepreneurs looking to discover the business conditions in this state before anything else. We have prepared this article with information about the taxes a company needs to pay in North Dakota. Also, we remind that our team of company formation agents in USA are at your service with comprehensive support and information about how you can start a business in North Dakota and about the taxes involved.

What is the sales tax rate in North Dakota?

The goods and services for sales purposes in North Dakota are subject to a sales tax rate of 5% and, more than that, the municipalities can impose their own tax of no more than 3%. Our team can offer more details about this tax.

What is the corporate income tax rate in North Dakota?

There are three marginal rates through which the business income is levied as seen in the table below:
Taxable Income  Tax Rate
Between 0$ and $25,000 1.4%
Between $25,000 and $50,000  $350 and 3.55% on amount exceeding $25,000
More than $50,000  $1,237.50 and 4.1% on amount exceeding $50,000

It is good to know that the corporations in North Dakota are subject to a corporate income business tax that ranges from 1.4% to 4.31%. The same corporate income tax is imposed for limited liability companies in North Dakota and distributed to each individual, depending on the registered share in the company.

For information about how you can open a company in USA and especially in North Dakota, contact our team of advisors. Also, you can read the general guide about company incorporation in North Dakota and discover the main requirements for company formation in this state.

Is there an estate tax in North Dakota?

No, there is no estate tax in North Dakota. An important thing to observe in this matter is that owners of North Dakotan gross estates which are bigger than the federal exemption of $5.49 million will have to file an estate tax return, without having to pay any taxes.

We invite you to contact our team of company formation specialists in USA and find out details about how to start a company in North Dakota.