Bismarck, North Dakota tax rates break down into three main layers: a combined sales tax of roughly 7% on most purchases, property tax calculated through a mill levy system with a 2025 certified combined rate near 237 mills, and a North Dakota state income tax that tops out at 2.50%. The city itself imposes no local income tax, and North Dakota’s overall tax burden ranks among the lightest in the country.
Sales Tax in Bismarck
The combined sales tax rate on most retail purchases in Bismarck is approximately 7%. North Dakota charges a 5% state sales tax on tangible goods, communications services, event admissions, lodging, and certain software transactions.1North Dakota Legislative Branch. North Dakota Code Chapter 57-39.2 – Sales Tax The city of Bismarck adds a home rule tax on top of that, and Burleigh County layers on its own local tax. Local rates can shift when voters approve new measures or let existing ones expire, so the Office of State Tax Commissioner’s local tax schedule is the place to confirm the current combined figure before a large purchase.2North Dakota Office of State Tax Commissioner. Local Taxes by Location Guideline
A few categories carry their own state rates. New farm machinery and irrigation equipment used exclusively for agriculture are taxed at 3% rather than 5%.3North Dakota Legislative Branch. North Dakota Code 57-39.5 – Farm Machinery Gross Receipts Tax Alcohol is taxed at a 7% state gross receipts rate, with applicable local taxes added on top.4North Dakota Office of State Tax Commissioner. Sales and Use Tax So a receipt for wine shows a visibly higher tax percentage than a receipt for most other goods.
Online and mail-order purchases from sellers that don’t collect North Dakota tax trigger use tax at the same rate as a local sale. Most large online retailers already collect it, because any remote seller with more than $100,000 in annual taxable sales into the state must register and collect.4North Dakota Office of State Tax Commissioner. Sales and Use Tax Below that threshold, the responsibility to report and pay shifts to the buyer.
Property Tax and the Mill Levy
Bismarck property tax runs through a mill levy system that combines rates from four main taxing districts: the City of Bismarck, Burleigh County, Bismarck Public Schools, and the Bismarck Park District. The 2025 certified total mill rate across all districts was approximately 237 mills.5City of Bismarck. Property Tax Calculator One mill equals $1 of tax per $1,000 of taxable value.
Taxable value is not the same as market value. North Dakota first reduces market value to an assessed value equal to 50% of the property’s true and full value.6North Dakota Office of State Tax Commissioner. Property Tax That assessed value is then multiplied by 9% for residential property or 10% for commercial property to arrive at taxable value.7City of Bismarck. FAQ – What Is Market Value, Assessed Value, and Taxable Value?
For a home with a market value of $300,000, the math works out like this:
- Assessed value: $300,000 × 50% = $150,000
- Taxable value: $150,000 × 9% = $13,500
- Estimated annual tax: $13,500 × 0.23710 = roughly $3,201
Your actual bill will vary with the specific combination of taxing districts your parcel sits in and any credits or exemptions that apply. The Burleigh County Auditor’s Office handles valuations and collects payments for all the overlapping districts.
Homestead Property Tax Credit
Bismarck homeowners who meet income limits can reduce their property tax through the Homestead Property Tax Credit. You must live in the home, and total household income (including your spouse and dependents) cannot exceed $70,000 for the calendar year before the assessment date.8North Dakota Office of State Tax Commissioner. Homestead Property Tax Credit and Renter’s Refund
- Income $0–$40,000: taxable value reduced by 100%, up to a maximum reduction of $9,000 in taxable value (equivalent to $200,000 in true and full market value for a residential property).
- Income $40,001–$70,000: taxable value reduced by 50%, up to a maximum reduction of $4,500 in taxable value ($100,000 in true and full value).
Applications are due before March 31 of the assessment year. A separate Primary Residence Credit may also apply, and both can be claimed on the same property. Renters with qualifying income may be eligible for a renter’s refund through the same program.8North Dakota Office of State Tax Commissioner. Homestead Property Tax Credit and Renter’s Refund
Special Assessments
Special assessments show up as a separate line on your tax statement and surprise most new Bismarck homeowners. They aren’t based on market value. They’re tied to specific infrastructure projects that benefit your property: repaved streets, new water mains, sewer extensions, sidewalks. State law lets municipalities spread those costs across the parcels that directly benefit.9North Dakota Legislative Branch. North Dakota Century Code 40-22 – Improvements by Special Assessment Method
Repayment terms depend on the type of improvement:10City of Bismarck. FAQ – Special Assessments
- Street resurfacing: 7 years
- Street lighting, sidewalks, curb and gutter: 10 years
- New pavement, water mains, sanitary sewer, and storm water: 15 years
- Small assessments of $200 or less: collected in a single year
The interest rate on each assessment tracks the rate the city gets when it sells bonds to fund the project, so it varies with every bond issue. Interest accrues on the unpaid principal after the first installment comes due.10City of Bismarck. FAQ – Special Assessments Paying the balance off early can save a meaningful amount over a 10- or 15-year term.
North Dakota Income Tax
North Dakota moved from a multi-bracket income tax to a two-bracket structure, and the first bracket is effectively a zero-tax zone. Single filers pay nothing on the first $44,725 of North Dakota taxable income; married couples filing jointly pay nothing on the first $74,750. Income above those thresholds is taxed at 1.95%, and income above a second, higher threshold is taxed at 2.50%.11North Dakota Legislative Branch. North Dakota Century Code 57-38 – Income Tax
- Single: 0% up to $44,725; 1.95% from $44,725 to $225,975; 2.50% above $225,975
- Married filing jointly: 0% up to $74,750; 1.95% from $74,750 to $275,100; 2.50% above $275,100
- Head of household: 0% up to $59,950; 1.95% from $59,950 to $250,550; 2.50% above $250,550
- Married filing separately: 0% up to $37,375; 1.95% from $37,375 to $137,550; 2.50% above $137,550
North Dakota taxable income starts with your federal taxable income and then applies state-specific adjustments.11North Dakota Legislative Branch. North Dakota Century Code 57-38 – Income Tax The practical result for most Bismarck households at moderate incomes: the full state income tax bill may land under $1,000. Bismarck itself imposes no city-level income tax.
Retirees get an added break on Social Security. North Dakota allows a deduction for taxable Social Security benefits if adjusted gross income falls below $50,000 for single filers or $100,000 for married couples filing jointly. Above those income levels, Social Security is included in state taxable income to the extent it’s taxable federally.
Taxes Bismarck Residents Do Not Pay
Two taxes that hit residents of other states don’t apply here. North Dakota’s estate tax remains on the books, but no estate taxes have been collected for deaths occurring after January 1, 2005. The state’s inheritance tax was repealed back in 1927.12North Dakota Office of State Tax Commissioner. Estate Tax There is also no local income tax in Bismarck, so what you see on the state return is the full state-and-local income tax picture.