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FAQ Articles

What is the current severance tax rate for oil and gas produced in North Dakota?

The gross production tax rate on gas is subject to a price index change on July 1 each year, the rate through June 30, 2018 is $.0555 per MCF. The gross production tax rate on oil is 5% of the gross value and the oil extraction tax rate is 5% of the gross value.  The oil extraction tax rate is reduced to 2% for qualified production from wells completed outside the Bakken and Three Forks formations and the rate is 0% if the well qualifies for an exemption.  If the trigger price of $90 is exceeded for 3 consecutive months the oil extraction tax rate increases to 6% and will revert back to 5% after the trigger price is below $90 for 3 consecutive months.  

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

What is the current severance tax rate for oil and gas produced in North Dakota?

The gross production tax rate on gas is subject to a price index change on July 1 each year, the rate through June 30, 2018 is $.0555 per MCF. The gross production tax rate on oil is 5% of the gross value and the oil extraction tax rate is 5% of the gross value.  The oil extraction tax rate is reduced to 2% for qualified production from wells completed outside the Bakken and Three Forks formations and the rate is 0% if the well qualifies for an exemption.  If the trigger price of $90 is exceeded for 3 consecutive months the oil extraction tax rate increases to 6% and will revert back to 5% after the trigger price is below $90 for 3 consecutive months.  

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