09 May 2023 North Dakota law lowers personal income tax rates retroactive to January 1, 2023 On April 27, 2023, North Dakota Governor Doug Burgum signed into law H.B. 1158, which retroactive to January 1, 2023, lowers the state's personal income tax rates by collapsing the tax brackets from five to three with tax rates of 0%, 1.95% and 2.5%. Under prior law, the highest tax rate was 2.9%. (The new tax tables for 2023 are reprinted below.) Governor Burgum stated that H.B. 1158 represents the largest income tax relief package in the state's history. The revised withholding tables and formula, once available, will be posted here. Under the current withholding guidelines, the supplemental rate of withholding for irregular payments, such as bonuses, is 1.84%. It is assumed that this rate will be reduced once the North Dakota withholding tables and formula are updated to reflect the tax cuts under H.B. 1158. (2023 North Dakota Income Tax Withholding Rates and Instructions, p. 58.) North Dakota personal income tax rates effective January 1, 2023 ____________________________________________________________________ Single, other than head of household or surviving spouse If North Dakota taxable income is: Over | But not over | The
tax is equal to | Of
amount over | $0 | $44,725 | $0.00 + 0.00% | $0 | $44,725 | $225,975 | $0.00 + 1.95% | $44,725 | $225,975 | | $3,534.38 + 2.50% | $225,975 |
Married filing jointly and surviving spouse If North Dakota taxable income is: Over | But not over | The
tax is equal to | Of
amount over
| $0 | $74,750 | $0.00 + 0.00% | $0 | $74,750 | $275,100 | $0.00 + 1.95% | $74,750 | $275,100 | | $3,906.83 + 2.50% | $275,100 |
Married filing separately If North Dakota taxable income is: Over | But not over | The
tax is equal to | Of
amount over | |
$0 | $37,375 | $0.00 + 0.00% | $0 | $37,375 | $137,550 | $0.00 + 1.95% | $37,375 | $137,550 | | $1,953.41 + 2.50% | $137,550 |
If North Dakota taxable income is: Over | But not over | The
tax is equal to | Of
amount over | |
$0 | $59,950 | $0.00 + 0.00% | $0 | $59,950 | $250,550 | $0.00 + 1.95% | $59,950 | $250,550 | | $3,716.70 + 2.50% | $250,550 |
Contact Information
For additional information concerning this Alert, please contact:
|
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor ———————————————
ATTACHMENT Document ID: 2023-0849 |
