North Dakota State Tax Return: Form ND-1, Credits & Deadlines

Your North Dakota state tax return for 2025 is due April 15, 2026, filed on Form ND-1 using your federal adjusted gross income as the starting point. State rates run from 0% to a top rate of 2.50%, and most residents with moderate incomes owe nothing at all because of a large zero-percent bracket.¹

Who Has to File

North Dakota Century Code Chapter 57-38 requires anyone who must file a federal income tax return and is a North Dakota resident to also file a state return. For the 2025 tax year, the federal filing thresholds match the standard deduction amounts: $15,000 for single filers and $30,000 for married couples filing jointly. If your gross income clears those numbers, you have a federal obligation and, by extension, a North Dakota one.²

Part-year residents and nonresidents follow a different rule. If you earned any income from North Dakota sources — wages for work performed in the state, rental income from property here, business income tied to the state — you need to file regardless of the amount.³

One situation catches a lot of people: if your employer withheld North Dakota income tax but your income sits below the filing threshold, file anyway. The state won’t return that money on its own. A filed return is the only way to get overwithheld tax back.

What You’ll Owe

North Dakota’s individual income tax has three brackets, and the first one is zero. You only start paying state tax once your taxable income crosses a threshold set by your filing status. For the 2025 tax year:

Single filers: 0% on the first $48,475; 1.95% on income from $48,475 to $244,825; 2.50% above $244,825
Married filing jointly: 0% on the first $80,975; 1.95% on income from $80,975 to $298,075; 2.50% above $298,075
Married filing separately: 0% on the first $40,475; 1.95% on income from $40,475 to $149,025; 2.50% above $149,025
Head of household: 0% on the first $64,950; 1.95% on income from $64,950 to $271,450; 2.50% above $271,450

These thresholds adjust for inflation each year, so 2026 numbers will shift slightly upward. A single filer with $48,475 or less in North Dakota taxable income owes no state income tax. A married couple filing jointly can earn up to $80,975 before any state tax applies. Above those points, the rates stay low.¹

Filling Out Form ND-1

Form ND-1 is North Dakota’s individual income tax return. Download it from the Office of State Tax Commissioner website or file electronically. The form begins with your federal adjusted gross income from line 11 of Form 1040, then applies state-specific additions and subtractions to reach your North Dakota taxable income.⁴

Have these on hand before you start:

Your completed federal Form 1040, since you’ll pull both AGI and federal taxable income from it
W-2s and 1099s to verify wages, other income, and withholding
Social Security numbers for you, your spouse, and any dependents
Records of taxes paid to other states if you had out-of-state income, which can qualify you for a credit on Schedule ND-1CR to avoid double taxation

Your filing status on Form ND-1 has to match the status you used on your federal return.⁴

Subtractions and Credits That Lower Your Bill

North Dakota diverges from the federal calculation through a set of subtractions and credits. Skipping them means overpaying.

Interest from U.S. government obligations, such as Treasury bills and savings bonds, is exempt on line 5 of Form ND-1. Interest from municipal bonds issued by other states gets added back to your state income even though it’s federally tax-free.⁵

If your federal taxable income includes net long-term capital gains, you can exclude 40% of those gains from your North Dakota taxable income. The same 40% exclusion applies to qualified dividends. Investors with meaningful portfolio income can cut their state tax noticeably with these two subtractions.⁵

Contributions to North Dakota’s College SAVE 529 plan are deductible up to $5,000 per year, or $10,000 for married couples filing jointly. Social Security benefits that appear in your federal taxable income can be subtracted on your state return.⁵

Military Pay and Retirement

North Dakota fully exempts military retirement benefits from state income tax. Retired members of the U.S. armed forces, Reserve, and National Guard subtract the entire taxable amount of retirement benefits from their federal return. Surviving spouses receiving these benefits get the same deduction. Attach your Form 1099-R from the Defense Finance and Accounting Service to your return. Active-duty pay has its own exclusion on line 11 of Form ND-1, and nonresidents stationed in North Dakota whose only state-source income is military wages don’t need to file at all.⁶

Family Member Care Credit

If you pay for care services for a disabled family member, North Dakota offers a credit worth 20% to 30% of qualified expenses, depending on your federal taxable income. Qualified expenses include adult day care, home health agency services, personal care attendants, respite care, and unreimbursed medical expenses. The credit maxes out at $2,000 per qualifying family member and $4,000 total per year. The percentage begins phasing down once federal taxable income exceeds $50,000 for individual filers or $70,000 for joint filers. Claim it on Schedule ND-1FA.⁷

If You Live in Minnesota or Montana but Work in North Dakota

North Dakota has income tax reciprocity agreements with Minnesota and Montana. If you live in one of those states and work in North Dakota, you don’t owe North Dakota tax on your wages here. Those wages are taxed only by your home state.⁸

Minnesota residents have an extra condition: the exemption applies only if you return to your permanent Minnesota home at least once a month. Miss that, and you lose the exemption and owe North Dakota tax on those wages. To claim the exemption, file Form NDW-R with your employer by February 28 of the calendar year, or within 30 days of starting work. A new form is required every year. Without it, your employer must withhold North Dakota tax, and you’ll have to file a state return to recover it.⁸

Estimated Tax Payments

Income that isn’t subject to withholding (self-employment earnings, rental income, investment gains) may trigger a requirement to make quarterly estimated payments. North Dakota requires them when all four of these apply: you must pay estimated federal tax, your North Dakota tax for the prior year was $1,000 or more, you expect to owe $1,000 or more this year after withholding, and your withholding will cover less than 90% of this year’s liability or 100% of last year’s.⁹

Payments are due in four equal installments on April 15, June 15, September 15, and January 15 of the following year. Qualified farmers can use a 66⅔% threshold instead of 90%. Form ND-1ES is the vehicle for calculating and submitting these payments.⁹

How to Submit Your Return

North Dakota Taxpayer Access Point (ND TAP) lets you file electronically for free through the state’s website without buying software. Commercial tax software that supports North Dakota e-filing is another route. Electronic filing processes faster and reduces data-entry errors.¹⁰

For paper returns, the mailing address depends on whether you owe:

Refund or zero balance: Office of State Tax Commissioner, PO Box 5621, Bismarck, ND 58506-5621
Payment enclosed: Office of State Tax Commissioner, PO Box 5622, Bismarck, ND 58506-5622

If you e-file but want to mail a payment by check or money order, use Form ND-1V, the individual e-file payment voucher. Make the check payable to “ND State Tax Commissioner” and write the last four digits of your Social Security number on the payment. Send the voucher and check to PO Box 5622. Payment must arrive by April 15 to avoid penalties and interest, even if you haven’t received confirmation the electronic return was accepted.¹¹

If You Need an Extension

North Dakota automatically recognizes any extension you get from the IRS, so you don’t need to notify the state separately. The state return then becomes due on the extended federal date, typically October 15. Check the extension box on Form ND-1 when you file. If you need time beyond the federal extension or didn’t get a federal one, apply for a state extension using Form 101, postmarked by the original April 15 due date, with a showing of good cause.¹²

An extension gives you more time to file, not more time to pay. Interest still accrues at 12% per year on any tax unpaid after April 15, including during the extension.¹²

Penalties for Filing or Paying Late

Missing the deadline without an extension triggers both a penalty and interest. The late-filing penalty is 5% of the tax owed for the first month or fraction of a month, with another 5% for each additional month, capped at 25%. The minimum penalty is $5. Interest runs at 12% per year on any unpaid balance from the original due date.¹³

Even if you can’t pay everything by April 15, file on time. The late-filing penalty stacks on the late-payment penalty, so a timely return with a partial payment limits the damage. Interest on the unpaid balance is unavoidable, but the monthly late-filing surcharge goes away as soon as the return is in.

Tracking Your Refund

Use the “Where’s My Refund?” tool on the Office of State Tax Commissioner website after you file. Enter the tax year, your Social Security number, your filing type, and your expected refund amount.¹⁴

Electronic returns are generally processed within three to four weeks. Paper returns take longer. Direct deposit is the fastest way to receive money, and if a bank rejects the deposit, the state mails a paper check to the address on your return. You can also sign up for text or email alerts. The state sometimes requests documentation to verify identity or confirm deductions before releasing a refund; responding quickly keeps things moving.¹⁴

1
North Dakota Office of State Tax Commissioner. Individual Income Tax
2
North Dakota Legislative Branch. North Dakota Code 57-38 – Income Tax
3
Legal Information Institute. North Dakota Administrative Code 81-03-01.1-02 – Taxpayer May Be Required to File a Pro Forma Federal Income Tax Return
4
North Dakota Office of State Tax Commissioner. Form ND-1 2025 – Individual Income Tax Return
5
North Dakota Office of State Tax Commissioner. Individual Income Tax Return and Booklet 2025
6
North Dakota Office of State Tax Commissioner. Military Service Members
7
North Dakota Office of State Tax Commissioner. Family Member Care Tax Credit
8
North Dakota Office of State Tax Commissioner. Reciprocity Exemption From Withholding for Qualifying Minnesota and Montana Residents Working in North Dakota
9
North Dakota Office of State Tax Commissioner. Form ND-1ES 2025
10
North Dakota Office of State Tax Commissioner. ND TAP Information
11
North Dakota Office of State Tax Commissioner. Form ND-1V Individual E-File Return Payment Voucher
12
North Dakota Office of State Tax Commissioner. Filing an Extension
13
North Dakota Legislative Branch. North Dakota Senate Bill 2102 – 1999
14
North Dakota Office of State Tax Commissioner. Where’s My Refund