BISMARCK, ND (KXNET) — A new landmark tax “Relief for All” plan has been announced for North Dakota residents that would replace the state’s individual tax income rates with a single, lower flat tax, that will save North Dakota taxpayers an estimated $250 million annually and will eliminate the individual tax income burden altogether for nearly 60% of the state’s taxpayers.
Governor Burgum, along with State Tax Commissioner Brian Kroshus and House Tax chairman Rep. Craig Headland, unveiled the “Relief for All” plan during a Capitol press conference on Wednesday.
Based on the current 2022 tax year, the plan would effectively eliminate the state’s individual income tax for over 388,000 North Dakota taxpayers whose adjusted gross income is $54,725 or less for single filers or $95,600 or less for married couples filing jointly.
Those with higher income levels would pay a flat tax of 1.5%, compared to current income tax rates that range from 2.04% to 2.9%, which translates to a reduction ranging from 26% to 48% in their state income taxes.
“Under this proposal, almost 60% of taxpayers won’t have to pay state income tax, and those who do will see their income tax liability reduced by roughly one-quarter to one-half, allowing North Dakotans to keep more of their hard-earned money to offset expenses and invest in their families and communities,” said Burgum.
North Dakota last changed its individual income tax rates in 2015, reducing rates by approximately 10%, from a range of 1.22% to 3.22% to a range of 1.1% to 2.9%.