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PaycheckDesk

North Dakota · tax year 2026

Does North Dakota tax tips and overtime?

Both deductions cut your state tax too.

North Dakota follows both federal deductions without ever having passed a law to: it starts from your federal taxable income, which the deductions have already reduced. It is also the gentlest state here. The first $49,575 of that income is taxed at nothing at all, or $82,800 filing jointly, so a single filer needs roughly $65,000 of wages before owing North Dakota anything. Above the line it is 1.95%, then 2.5%.

What it means on a real paycheck

Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.

In North Dakota it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.

How North Dakota works out the tax

North Dakota charges nothing at all on the first $49,575, then 1.95% rising to 2.5%. It begins from your federal taxable income.

Worth knowing about North Dakota

It starts from your federal taxable income

Most states begin at your adjusted gross income and apply their own deduction. This one begins after the federal standard deduction has already come off, which is why the two federal deductions can reach it without the state passing any law of its own.

Your own numbers

Your gross pay before any taxes or deductions.

Married filing separately cannot claim these deductions at all, so it is not offered here.

Traditional, pre-tax. Lowers income tax but not Social Security or Medicare.

Pre-tax cafeteria-plan premiums. These lower income tax and FICA.

Take-home pay per paycheck (26 per year)

$2,000

$51,997 a year after taxes and deductions.

North Dakota follows both federal deductions without ever having passed a law to: it starts from your federal taxable income, which the deductions have already reduced. It is also the gentlest state here. The first $49,575 of that income is taxed at nothing at all, or $82,800 filing jointly, so a single filer needs roughly $65,000 of wages before owing North Dakota anything. Above the line it is 1.95%, then 2.5%. See what that costs you →

Where the money goes each year

Gross salary$62,000
Federal income taxTop rate applied: 12%−$5,260
Social Security−$3,844
Medicare−$899
State income tax (ND)Graduated brackets on $45,900 of state taxable income$0
Take-home pay$51,997

Per paycheck

Gross$2,385
Taxes withheld−$385
Net$2,000

Estimate for tax year 2026 assuming the standard deduction, no dependents or credits, and even pay across the year. Your employer withholds using your Form W-4, so an individual paycheck can differ. Effective total tax rate: 16.13%. Not tax advice.

Where these figures come from

North Dakota’s rates and reliefs here were taken from North Dakota’s own publication and last checked on 2026-08-02. A state appears in this calculator only once its figures have been read off that state’s own paperwork and covered by tests — never estimated, and never copied from another site.

Figures on this page are for tax year 2026 and were last checked against the primary sources on 2026-07-31. See our sources. This is an estimate, not tax advice.

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