Last updated: December 31st, 2025
Each state has unique income tax withholding rules. Below are North Dakota's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | ND |
|---|---|
| State Tax Withholding State Code | 38 |
| Acceptable Exemption Form | W-4 |
| Basis For Withholding | Federal Rules (Dual Method) |
| Acceptable Exemption Data | Pre-2020: Allowances / Post-2020: None |
| TSP Deferred | Yes |
| Special Coding | None |
| Additional Information | North Dakota uses two methods: 1) For Pre-2020 W-4s, deduct $5,050 per allowance. 2) For 2020+ W-4s, use Federal Taxable Wages directly without state allowance subtractions. |
| Official State Tax Website | Visit Official Website |
North Dakota uses a dual system. It relies on Federal W-4 data. For Pre-2020 forms, it uses the allowance count (valued at $5,050 each). For 2020+ forms, it ignores allowances and relies on the federal status-based tables.
| Component | Allowances | Notes |
|---|---|---|
| Pre-2020 W-4 | $5,050 | Per allowance claimed |
| 2020+ W-4 | $0 | Allowances not used; Tables adjusted automatically |
See Step 5 for conditional logic
Ensure your payroll system checks the W-4 version date. Using the $5,050 deduction on a 2026 W-4 would result in under-withholding.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
Determine Taxable Income: If Pre-2020 W-4, subtract ($5,050 × Exemptions) from Annual Wages. If 2020+ W-4, use Annual Wages directly (Federal Standard Deduction is already factored into the tables).
Pre-2020: Wages - ($5,050 * Allowances) | Post-2020: Wages
Apply the taxable income to the appropriate tax withholding table (Single, Married, or Head of Household) to determine the annual North Dakota income tax withholding.
Divide the annual North Dakota tax withholding by 26 to obtain the biweekly North Dakota tax withholding.
Want to calculate in an easier way? Learn how to calculate North Dakota taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $5,050 |
Formula: $5,050 × Number of Allowances (Pre-2020 Forms Only)
Allowances are only used for employees with a Pre-2020 W-4 on file.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $57,625 | $0 | + | 0.00% | $0 |
| $57,625 | $258,450 | $0 | + | 1.95% | $57,625 |
| $258,450 | and over | $3,916 | + | 2.50% | $258,450 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $57,500 | $0 | + | 0.00% | $0 |
| $57,500 | $168,525 | $0 | + | 1.95% | $57,500 |
| $168,525 | and over | $2,165 | + | 2.50% | $168,525 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $78,475 | $0 | + | 0.00% | $0 |
| $78,475 | $289,675 | $0 | + | 1.95% | $78,475 |
| $289,675 | and over | $4,118 | + | 2.50% | $289,675 |
ezPaycheck simplifies payroll calculations, including North Dakota's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date North Dakota state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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