North Dakota ranked No. 8 among all 50 states as one of the most tax-friendly states, according to a study by Kiplinger.
North Dakota hit this mark due to its modest sales taxes that favor agriculture and because it has significantly cut income taxes.
Property taxes are middle of the road, and the state also scores well for fiscal stability, indicating that it will be able to stay tax-friendly in the future.
“This year’s tax filing season was more nerve-racking than most — it was the first time Americans had to deal with all the federal tax code changes made by the 2017 tax reform law,” said Rocky Mengle, tax editor at Kiplinger.
“The shakeup also makes it harder to tell how a person’s state taxes line up with those of a similarly situated person in a neighboring state. Our annual Tax Map helps make that comparison and is particularly useful for someone planning to move to a different state.”
Here are some of North Dakota’s tax rates, according to Kiplinger, for reference:
State levy: 5%. Localities can add as much as 3.5%, and the average combined rate is 6.85%, according to the Tax Foundation. “New farm machinery, new farm machinery attachments or new irrigation equipment [used] exclusively for agricultural purposes” is taxed by the state at 3%. Local taxes may still apply.
Income Tax Range
Low: 1.10% (on up to $38,700 of taxable income for singles and up to $64,650 for married couples filing jointly)
High: 2.90% (on taxable income over $424,950)
Effective tax rate: 1.1% for single filers, 1.58% for joint filers.
Motor Fuel Taxes
Gasoline: $0.2300 per gallon.
Diesel: $0.2300 per gallon.
Residents pay an average of $1,056 in taxes per $100,000 of assessed home value.
5% excise tax due on purchases.
Cigarettes: $0.44 per pack
Cigars: 28% of the wholesale price
Chewing tobacco: 16 cents per ounce
Snuff: 60 cents per ounce
Beer: $0.39 per gallon
Wine: $1.06 per gallon
Liquor: $4.66 per gallon
All alcohol sales are also subject to a 7% sales tax.
Taxes on Wireless Service
Inheritance and Estate Taxes