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There are many reasons to do business in North Dakota, here are a few:
- Our low individual income tax rates are competitive with other states that have income tax. The rates—ranging from 1.1% to 2.9%—are applied to federal taxable income plus or minus certain state adjustments.
- Our corporate income tax rates range from 1.41% to 4.31% of North Dakota taxable income. The state income is determined using an equally weighted three-factor apportionment formula. Partnerships, S corporations, and LLCs do not pay income tax at the entity level; instead, the entity’s profit or loss is passed through to the entity's owners.
- Many items that are taxed in other states are exempt from sales tax in North Dakota. For example, natural gas, electricity, most professional services, and groceries are not taxed.
- North Dakota exempts personal property from taxation (except certain oil and gas refineries and utilities). That means there isn’t property tax on items like office equipment, inventory, accounts receivable, or materials in process.
- We have some of the most affordable workers compensation and unemployment insurance tax rates in the nation.
- To learn more about doing business in North Dakota, contact the North Dakota Department of Commerce.