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ND · payroll profile

North Dakota

Everything an out-of-state employer needs before running a North Dakota payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 2.5%
Reciprocal agreements
2 states
SUI wage base 2026
$46,600
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 2.5%
Withholding certificate Federal Form W-4
Employee's Withholding Certificate (North Dakota uses the federal W-4; no separate state certificate)
Accepts federal Form W-4 Yes
Convenience-of-the-employer rule No
Nonresident withholding threshold 20 days
Per the North Dakota Income Tax Withholding Guideline, a nonresident mobile-workforce exclusion applies where the nonresident is present in North Dakota to perform employment duties for not more than 20 days during the tax year, has no other North Dakota income, and is a resident of a state that provides a substantially similar exclusion or imposes no income tax (mutuality requirement). COST's chart phrases this as 'more than 21 days'; the ND guideline's 'not more than 20 days' is used here.
Local income taxes No
No local personal income or wage taxes in North Dakota.

Reciprocity

North Dakota exempts residents of 2 states from North Dakota withholding, provided the employee files NDW-R with the employer.

MinnesotaMontana
Confirmed in the North Dakota Income Tax Withholding Guideline. Minnesota and Montana residents file Form NDW-R with the North Dakota employer; the form must be renewed annually by February 28. A Minnesota resident must return home to Minnesota at least once every month to qualify.

States that exempt North Dakota residents

A North Dakota resident working in these states files that state's certificate and is taxed only by North Dakota.

District of ColumbiaMinnesotaMontana

Unemployment insurance and paid leave

Taxable wage base 2026 $46,600
2025 base was $45,100.
New employer rate 1%
New non-construction employers pay roughly 1.00%; new construction employers pay a substantially higher rate.
Experience rate range 0.07% – 9.67%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
North Dakota Office of State Tax Commissioner
UI agency
North Dakota Job Service

Sources

tax.nd.gov · tax.nd.gov · tax.nd.gov · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.