Tax Facts - Doing Business in North Dakota

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 1.1% to 2.9%—are applied to federal taxable income plus or minus certain state adjustments.*

Our corporation income tax rates range from 1.41 to 4.31% 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.

We have several resources to help you determine if North Dakota is right for your business:

• The North Dakota Tax Incentives for Businesses Booklet is a great resources for businesses.
• The Business Incentives/Exemptions page on our website lists out many incentives along with their North Dakota Century Code (N.D.C.C.) references.
• The New Businesses page has new business applications and registration links.

*Tax rates apply to taxable years beginning after December 31, 2014.

Want to know more about doing business in North Dakota? Contact:

Department of Commerce
PO Box 2057
Bismarck ND 58503-2057
Phone: 701.328.5300
Email: commerce@nd.gov
www.commerce.nd.gov

Job Service North Dakota
PO Box 5507
Bismarck ND 58506-5507
Phone: 701.328.2825
Email: jsndweb@nd.gov
www.jsnd.com

North Dakota Secretary of State
600 E Boulevard Ave. Dept 108
Bismarck ND 58505-0500
Telephone: 701.328.2900
Email: sos@nd.gov
www.sos.nd.gov

Office of State Tax Commissioner
600 E Boulevard Ave. Dept. 127
Bismarck ND 58505-0599
Phone: 701.328.7088
Email: taxinfo@nd.gov
www.nd.gov/tax