North Dakota tax deductions and write-offs (2026)

No. North Dakota fully exempts military retired pay from state income tax. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.

Yes. Pensions and 401(k)/IRA withdrawals are taxed with no general retirement exclusion.

No. Since tax year 2021, North Dakota lets all taxpayers exclude the taxable portion of Social Security, with no income limit. SB 2351 (2021 special session) removed the earlier $50,000 / $100,000 AGI limits.

No: North Dakota doesn't offer a state earned income credit. No state earned income tax credit as of tax year 2026. A related break for older or lower-income homeowners: Primary Residence Credit up to $1,600 a year for any homeowner, no age or income limit; apply annually.

Only instead of income tax: itemizers in North Dakota pick sales tax (5% state rate, about 7.09% with local taxes) or state income tax, whichever is bigger. Instead of sales tax, vehicles pay a 5% motor vehicle excise tax, and no local tax applies to vehicle purchases.

Yes on your federal return if you itemize, within the $40,400 SALT cap. North Dakota adds its own break: Primary Residence Credit up to $1,600 a year for any homeowner, no age or income limit; apply annually.

Yes: North Dakota offers the Renter's Refund. Partial refund of rent for older and disabled renters: the amount by which 20% of annual rent exceeds 4% of income, up to $600; applied for directly with the Office of State Tax Commissioner. Age 65+ or permanently and totally disabled; income (including spouse and dependents) of $70,000 or less after eligible medical expenses; no asset limit.

No: North Dakota doesn't base registration on your car's value, so it isn't deductible as personal property tax. Passenger fees are set by weight and year first registered, e.g., $73 for a newer car under 3,200 lbs.

North Dakota's top rate is just 2.5%, and most moderate incomes owe 0%.

Yes on your North Dakota return: $5,000 single / $10,000 joint per return. Only contributions to the state's own plan count. College SAVE only; rollovers from another 529 plan are not deductible; K-12 tuition withdrawals allowed without state tax consequences.

No: North Dakota doesn't offer a state child tax credit. No child tax credit or child and dependent care credit.

Yes, as a business expense: North Dakota charges $135 to form an LLC; ongoing: $50 annual report. Due Nov 15.