Find Local North Dakota Tax Relief Experts

North Dakota has a low graduated individual income tax from 1.1% to 2.9%, with the top rate applied to income above $445,000 for single filers, one of the most favorable income tax structures in the nation. The state sales tax is 5%, with cities able to add up to 3%; Fargo, Bismarck, and Grand Forks impose local rates of 2%, bringing combined rates to 7% in those cities. Corporate income tax in North Dakota ranges from 1.41% to 4.31% on North Dakota net income, also among the lowest corporate rates nationally; the state uses the single-sales-factor apportionment option. Payroll taxes require North Dakota employers to withhold state income tax and file Form 307 quarterly; the state employment security bureau collects unemployment insurance at rates from 0.08% to 9.69% depending on employer experience. North Dakota's oil and gas sector creates unique tax obligations: oil extraction companies pay a 5% extraction tax and 11.5% oil and gas production tax on gross production value, and contractors serving the Bakken oil fields face complex nexus and income sourcing issues. Back tax debt in North Dakota accumulates at 1% monthly interest plus penalties up to 25%; the Office of State Tax Commissioner can garnish wages, place liens, and levy bank accounts. Oil field workers, agricultural commodity producers, and out-of-state construction contractors who work North Dakota projects are the most common sources of North Dakota back tax issues. North Dakota offers installment payment arrangements and a voluntary disclosure program for businesses with prior-period filing obligations.