North Dakota residents can use this calculator to determine their weekly, monthly, or yearly income. The only details needed are the name, check date, marital status, and the sum of federal and state withholdings. The outcome is presented when you choose "calculate paycheck." North Dakota levies state income tax up to 2.9%, while no county, city, or municipality is allowed to charge any additional local income tax.
North Dakota is a great plains dominated state, located in the Midwestern and Northern part of the United States. It is the fourth-smallest by population, nineteenth most extensive in area, the fourth most sparsely populated and has been ranked No. 1 among all states for quality of life. Its largest city is Fargo, and its capital is Bismarck.
North Dakota is known by several nicknames including The Peace Garden State, The Roughrider State, and The Flickertail State. The state is a one-stop-shop to enjoy all cultures and nightlife as well as avail fantastic business and job opportunities. Moreover, the state also offers all four seasons, great outdoors, quality education, amazingly friendly people and quality life.
So are you lucky enough to get several job offers in The Peace Garden State? Or impressed enough to move in here to start your new life with a new career but can't finalize your decision? Don't Worry! You care at the right spot. Our travel experts have joined hands with finance experts to bring you a unique guide that would help both employers and employees to relocate to North Dakota. This comprehensive guide includes:
We are hopeful that the topics mentioned above would answer most of your questions regarding North Dakota, making your decision to relocate a lot easier. So let's get started!
Moving from town to town, state to state is not an easy job, but if done with proper research and planning, it can be useful, beneficial and easy peasy. Here are some of the critical factors about North Dakota that you must know before taking your life-changing decision:
Living in North Dakota is quite affordable as compared to the rest of the states in the US. The cost of living in the state is 89.9 points, whereas the national index is 100 points. Housing, utilities and transportation are the most significant factor in the cost of living difference, while the cost of grocery, health and miscellaneous is almost close to the national average.
As discussed earlier, housing cost is quite reasonable in North Dakota. The current median home value in the state is $202,300, while it is $231,200 in the US. So, you won't be carrying an extra burden to own your dream house. However, if you are planning to rent one than you'll pay around $1,295/month (it varies depending on the location).
North Dakota takes education pretty seriously. It is ranked at number 6 in the country for higher education, according to the Best States, despite its small population size. So if you want your children to get smart on the Prairie, then North Dakota could be your right decision. Some of the famous educational institutes include the University of North Dakota and the North Dakota State University.
Due to less population, North Dakota offers a pollution-free environment, making it a perfect land to enjoy a crisp, clear night allowing you to have an uninterrupted view of the stars. Moreover, you can also attend an annual three-day Dakota Nights Astronomy Festival hosted in Roosevelt National Park in Medora to celebrate the state's heritage and dark skies. Moreover, from hiking and biking to fishing and golfing, the state has to offer so much more.
Some of the most significant North Dakota outdoor adventures include the King's walk Golf course, Pembina Gorge Lake, Lake Metigoshe, Garrison beside Lake Sakakawea, Lund's Landing Resort, Bully Pulpit and North Country National Scenic Trail.
North Dakota enjoys a ridiculously lower Unemployment rate of 2.6%, so you won't find it hard to get your dream job here.
With Agriculture, oil and gas as one of the leading industries here, the state has a flourishing economy. Moreover, sectors like technology and manufacturing have also emerged as a significant player in the state with plenty of opportunities across the board for you.
Some of the fastest-growing jobs here, according to zippia.com are EMT, registered nurse practitioner, home health Aid, and medical records clerk.
So it's an excellent place for job seekers and entrepreneurs to find fantastic new opportunities.
The state has a continental climate with hot subtropical summers and snowy cold winters. You can experience all four seasons, but winters can go extreme. The temperature in summers can get up in the high percentages plus above 90 degrees and as low as -20 or more in winters. So overall, the state has some of the wildest weather in the country.
Here is a quick round-up of reasons why you should and shouldn't move to North Dakota:
As we are done with relocation to North Dakota and its payroll facts, now it's time to calculate paycheck.
The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.
Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:
Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.
Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, and local authorities.
To calculate gross wage for an hourly employee:
Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.
Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.
To calculate Gross Pay for Salaried Employees:
Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.
Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.
Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.
Some of the common pre-tax deductible benefits are:
Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:
Filing Status | Standard Deduction Amount |
---|---|
Single Filers | $12,200 |
Married, Filing Jointly | $24,400 |
Married, Filing Separately | $12,200 |
Head of Household | $18,350 |
Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the Taxable wages.
IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.
The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.
The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:
Taxable Income | Rate |
---|---|
$0 - $9,700 | 10% |
$9,700 - $39,475 | 12% |
$39,475 - $84,200 | 22% |
$84,200 - $160,725 | 24% |
$160,725 - $204,100 | 32% |
$204,100 - $510,300 | 35% |
$510,300+ | 37% |
Taxable Income | Rate |
---|---|
$0 - $19,400 | 10% |
$19,400 - $78,950 | 12% |
$78,950 - $168,400 | 22% |
$168,400 - $321,450 | 24% |
$321,450 - $408,200 | 32% |
$408,200 - $612,350 | 35% |
$612,350+ | 37% |
Taxable Income | Rate |
---|---|
$0 - $9,700 | 10% |
$9,700 - $39,475 | 12% |
$39,475 - $84,200 | 22% |
$84,200 - $160,725 | 24% |
$160,725 - $204,100 | 32% |
$204,100 - $306,175 | 35% |
$306,175+ | 37% |
Taxable Income | Rate |
---|---|
$0 - $13,850 | 10% |
$13,850 - $52,850 | 12% |
$52,850 - $84,200 | 22% |
$84,200 - $160,700 | 24% |
$160,700 - $204,100 | 32% |
$204,100 - $510,300 | 35% |
$510,300+ | 37% |
Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.
Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:
A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2025.
A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:
Income Over | Filing Status |
---|---|
$250,000 | Married Filing Jointly |
$125,000 | Married Filing Separately |
$200,000 | Single |
IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.
The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.
Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.
Here are some of the types of post-tax deductions that employee may voluntarily choose:
As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The North Dakota State charges State Income Tax on the employees. Moreover, employers are required to pay State Unemployment Insurance Tax.
North Dakota follows a progressive income tax system, having five tax brackets dependent on income level and filing status and a rate range of 1.10% to 2.90%. Moreover, Supplemental Wages can be charged at a flat rate of 1.48%.
The employer withholds this tax from the employee's paycheck according to the details provided by the employee in the Form W4 (As North Dakota relies on the federal Form W-4 for calculating the amount to withhold). This form is filled by the employee while joining the job. Employees are required to keep the form updated with any significant life events like marriage, child's birth, and divorce.
North Dakota Taxable Income | Rate |
---|---|
$0 - $39,450 | 1.10% |
$39,450 - $95,500 | 2.04% |
$95,500 - $199,250 | 2.27% |
$199,250 - $433,200 | 2.64% |
$433,200+ | 2.90% |
North Dakota Taxable Income | Rate |
---|---|
$0 - $65,900 | 1.10% |
$65,900 - $159,200 | 2.04% |
$159,200 - $242,550 | 2.27% |
$242,550 - $433,200 | 2.64% |
$433,200+ | 2.90% |
|
|
---|---|
North Dakota Taxable Income | Rate |
$0 - $32,950 | 1.10% |
$32,950 - $79,600 | 2.04% |
$79,600 - $121,275 | 2.27% |
$121,275 - $216,600 | 2.64% |
$216,600+ | 2.90% |
North Dakota Taxable Income | Rate |
---|---|
$0 - $52,850 | 1.10% |
$52,850 - $136,450 | 2.04% |
$136,450 - $220,900 | 2.27% |
$220,900 - $433,200 | 2.64% |
$433,200+ | 2.90% |
The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.
The state doesn't charge in North Dakota State Disability Insurance (SDI) Tax. However, it does require the employers to pay North Dakota State Unemployment Insurance (SUI) tax, at the rate ranging from 0.08% to 9.69% on a first $37,900 earned in wages by each employee in a year. However, construction employers pay a flat rate of 9.75%, and new employers are given relief as they only have to pay a flat rate of 1.02%.
No city or county In North Dakota charges any Local Income Tax.
Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.
Answer: North Dakota levies State Income Tax at the rate ranging between 1.10% and 2.90%, distributed in five tax brackets depending on income level and filing status.
Answer: The median household income for North Dakota residents is $63,473, according to United States Census Bureau.
Answer: The cost of living in North Dakota is 89.9 points, whereas the national index is 100 points. This cost is deducted from the cost of housing, utilities, health, transportation, grocery and miscellaneous expenses.
Answer: The Minimum Wage rate in North Dakota is $7.25 for employees, unless or otherwise exempted. The Cash Minimum Wage rate for Tipped Employees is $4.86, with a maximum tip credit of $2.39.
Answer: Following Payroll taxes are taken out of employee's paycheck working In North Dakota: