NORTH DAKOTA (KXNET) — With one swipe of a pen with the governor’s signature, a historic tax relief package is signed into law.
“A huge win for North Dakota taxpayers. House Bill 1158 allows workers across all tax brackets to keep more of their hard earn money while also easing the property tax burden. That allows homeowners especially making homeowners for our senior citizens remain affordable,” said Governor Doug Burgum.
The five existing tax brackets are now reduced to three.
So, for a single filer making less than $44,000 and married couples making less than $74,000 income tax will be eliminated. For a single filer making between $44,725 to $225,975 and married couples making between $74,750 to $275,100 and there will be a 1.95% tax applied. And for the last bracket, any income earned beyond the previous brackets a 2.5% tax will be applied.
To put it more simply:
“Someone who is a family of four, two individuals working an income of $150,000 and you own a $200,000 home this would be nearly $900 in tax savings for that family,” said Governor Burgum.
According to Governor Burgum, this bill paves the way for the state to reduce income tax rates even further. It also includes more than $50 million to expand the Homestead Tax Credit and more than $100 million in property tax credits.
“The homestead tax credit tripled, largest income tax relief package, $500 per premium this is a big deal. So the people that are aged 65 and over this is a big win,” said Rep. Mike Lefor.
And it took a lot of determination as well as work on the legislature’s part to make this a reality.
“All the legislatures that introduced any type of a bill that was related to tax relief I think everyone deserves credit for trying to be part of the solution,” Sen. Jordan Kannianen.
And even though this wasn’t the original proposed flax tax, Governor Burgum says it’s a great start.
“North Dakota will have the lowest income tax in the nation among states that have individual income tax,” said Governor Burgum.
Governor Burgum also says the tax relief will help retain and recruit workers for the ongoing workforce shortage.