Retiring in North Dakota: how your income is taxed
North Dakota is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in North Dakota
- Social Security: Social Security included in federal income is fully deducted. Income limits on this deduction were removed for tax years 2021 and later.
- Pensions: Private and civilian government pensions are taxed at North Dakota's low graduated rates; there is no general pension exclusion. Military retirement pay is fully deductible.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are taxed as ordinary income at North Dakota's rates, with no retirement-account exclusion.
- At 65 and older: North Dakota starts from federal taxable income, so the extra federal standard deduction at 65 and the federal senior deduction (up to $6,000 per person, 2025–2028) carry over to the state return.
Calculate your North Dakota retirement taxes
State income tax in North Dakota: $0 a year
In North Dakota, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In North Dakota you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
North Dakota ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in North Dakota
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $603 | $0 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply North Dakota's main exclusions and may differ for income-tested credits.
Moving to North Dakota in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to North Dakota come from (IRS migration data, 2022–2023).
- Minnesota to North Dakota
- Texas to North Dakota
- California to North Dakota
- South Dakota to North Dakota
- Montana to North Dakota
- Arizona to North Dakota
Frequently asked questions
Does North Dakota tax Social Security?
Not taxed. Social Security included in federal income is fully deducted. Income limits on this deduction were removed for tax years 2021 and later.
Does North Dakota tax pensions?
Taxed. Private and civilian government pensions are taxed at North Dakota's low graduated rates; there is no general pension exclusion. Military retirement pay is fully deductible.
Does North Dakota tax 401(k) and IRA withdrawals?
Taxed. 401(k) and IRA withdrawals are taxed as ordinary income at North Dakota's rates, with no retirement-account exclusion.
Is North Dakota a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, North Dakota charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: tax.nd.gov, ndlegis.gov, veterans.nd.gov. Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.