You'll find plenty of reasons why North Dakota is a great place to do business. Here are just a few:
- Our low individual income tax rates are competitive with other states that have an income tax. The rates—ranging from 1.51% to 3.99%—are applied to federal taxable income plus or minus certain state adjustments.*
- Our corporation income tax rates range from 1.68 to 5.15% of North Dakota taxable income.* The state income is determined using an equally weighted three-factor apportionment formula. Partnerships, S corporations, and LLCs (treated like passthrough entities) do not pay income tax at the entity level; instead, the entity profit or loss is passed through to the entity's owners.
- 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.
- 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.
- We have some of the most affordable workers compensation and unemployment insurance tax rates in the nation.
*Tax rates apply to taxable years beginning after December 31, 2010.