A Proposed Tax Relief Plan May Eliminate Income Taxes For A Majority Of North Dakotans

Governor Doug Burgum today announced a landmark tax relief plan that would save North Dakota taxpayers an estimated $250 million annually.

The move will replace the state’s individual income tax rates with a single, lower flat tax, saving and eliminate the individual income tax burden altogether for nearly 60 percent of the state’s taxpayers.

Burgum unveiled the Relief for All plan during a Capitol press conference with Lt. Gov. Brent Sanford and members of the legislature’s House and Senate taxation committees.

Based on the current 2022 tax year, the plan would effectively eliminate the state’s individual income tax for over 388,000 North Dakota taxpayers whose adjusted gross income is $54,725 or less for single filers or $95,600 or less for married couples filing jointly.

North Dakotan's with higher income levels would pay a flat tax of 1.5%, compared to current income tax rates that range from 2.04% to 2.9%, which translates to a reduction ranging from 26% to 48% in their state income taxes.

Burgum noted that competition for workforce is fiercer than ever, and the state’s balance sheet has never been stronger.

“Now is the right time to provide meaningful, permanent tax relief to make our state a more attractive place to work and a more affordable place to live,” Burgum said. “Under this proposal, almost 60% of taxpayers won’t have to pay state income tax, and those who do will see their income tax liability reduced by roughly one-quarter to one-half, allowing North Dakotans to keep more of their hard-earned money to offset expenses and invest in their families and communities.”

Legislators will now work with the Governor’s Office, the Office of State Tax Commissioner and Legislative Council to prepare the plan for introduction to the 68^th Legislative Assembly, which convenes in regular session on January 3rd