★ North Dakota2026 Compliance Year

North Dakota Payroll Compliance

Every rate, wage base, and threshold North Dakota employers need for 2026 — sourced from the Office of State Tax Commissioner and Job Service ND — including one of the lowest top income tax rates of any graduated-tax state in the country.

Last reviewed: July 2026 · Sources: tax.nd.gov, jobsnd.com
Min Wage
$7.25
federal floor
Top Income Tax
2.5%
tied lowest in US
Tax Brackets
2
one of only 5 states
SUI Wage Base
~$45,100+
confirm exact 2026 figure
Local Tax
None
no city/county tax
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Minimum Wage & Hours

North Dakota’s minimum wage matches the federal floor of $7.25/hour with no state-level increase enacted. No North Dakota city or county sets its own minimum wage.

Item2026 ValueNotes
State minimum wage$7.25/hrMatches the federal FLSA floor
Overtime rule40 hrs/weekFederal FLSA; no separate state daily overtime rule
Local wage ordinancesNoneNo North Dakota city or county sets its own minimum wage
2026 minimum wage — Plains states comparison
North Dakota matches most immediate neighbors
Minnesota is the only directly bordering state with a minimum wage above the federal floor.
Minnesota
$11.41
Montana
$10.85
North Dakota
$7.25
South Dakota
$11.85
Bars scaled to South Dakota's $11.85. North Dakota is highlighted in deep blue as the subject state.
🧾

State Income Tax Withholding

North Dakota’s top marginal rate of 2.5% is tied with Arizona for the lowest of any state that still levies a personal income tax. North Dakota is also one of just five states running a genuine two-bracket system, and it includes the federal standard deduction in its income starting point.

Item2026 ValueNotes
Bracket structure2 bracketsOne of only 5 states nationwide with this structure
Top marginal rate2.5%Tied with Arizona for the lowest top rate of any state with an income tax
Income starting pointFederal standard deduction includedNorth Dakota is one of a handful of states using this approach
Local income taxNoneNo North Dakota city or county imposes one
2026 top income tax rate — nationwide context
North Dakota ties for the lowest rate of any income-tax state
Only Arizona matches North Dakota's 2.5% top marginal rate among states that still tax wage income.
California (top rate)
13.3%
Minnesota (top rate)
9.85%
Colorado (flat)
4.40%
North Dakota
2.5%
Arizona
2.5%
Bars scaled to California's 13.3% top rate. North Dakota is highlighted in deep blue as the subject state.
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Unemployment Insurance (SUI)

North Dakota’s SUI wage base was approximately $45,100 in 2025; the exact 2026 figure had not been finalized in the sources available at the time of this writing.

ItemValueNotes
2025 SUI wage base$45,1002026 figure not yet confirmed — verify via Job Service ND
Administering agencyJob Service North DakotaQuarterly filing, standard schedule
2026 SUI wage base — Plains states comparison
North Dakota runs a high wage base relative to neighbors
North Dakota's 2025 base was more than double Nebraska's standard-tier figure.
North Dakota (2025 figure)
$45,100
South Dakota
$15,000
Nebraska (standard)
$9,000
Bars scaled to North Dakota's 2025 figure of $45,100 pending 2026 confirmation.
About this guide: Independent editorial analysis for payroll professionals from publicly available North Dakota state government publications. Rates change; verify at official .gov sources. This is not legal or tax advice. Last reviewed July 2026.
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