North Dakota payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in North Dakota, each with its effective date and the agency page it comes from.
Unemployment insurance
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | North Dakota Office of State Tax Commissioner (opens in a new tab) | North Dakota Office of State Tax Commissioner, Income Tax Withholding (opens in a new tab) | |
| Withholding rates | 1.95% to 2.5% | ND Office of State Tax Commissioner, Income Tax Withholding Rates & Instructions for wages paid in 2026 (PDF) (opens in a new tab) | |
| Supplemental wages | 1.5% optional flat rate | ND Office of State Tax Commissioner, Income Tax Withholding Rates & Instructions for wages paid in 2026 (PDF), Section 3 (opens in a new tab) | |
| Reciprocity | Minnesota: NDW-RMontana: NDW-R | North Dakota Office of State Tax Commissioner, Income Tax Withholding (Reciprocity) (opens in a new tab) | |
| Employee's withholding form | Federal Form W-4 | North Dakota Office of State Tax Commissioner, Income Tax Withholding (opens in a new tab) | |
| Local income taxes | No | N.D.C.C. §40-05.1-06 (home rule city powers) and §11-09.1-05 (home rule county powers) (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $7.25 | ND Department of Labor and Human Rights, ND Minimum Wage & Work Conditions Summary Poster (PDF) (opens in a new tab) | |
| Tipped employees, cash wage | $4.86 | ND Department of Labor and Human Rights, Wage and Hour FAQ (opens in a new tab) | |
| Rises with inflation | No | ND Department of Labor and Human Rights, ND Minimum Wage & Work Conditions Summary Poster (PDF) (opens in a new tab) | |
| Local rates | No local minimum wages listed; the state summary poster gives one statewide rate. | ND Department of Labor and Human Rights, Wage and Hour Topics (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | ND Department of Labor and Human Rights, Required Employer Posters (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From the first employeeCoverage must be in place before the first employee starts; covers full-time, part-time, seasonal and occasional workers | North Dakota Workforce Safety & Insurance, Coverage Requirements (opens in a new tab) | |
| State fund | Workforce Safety & Insurance (WSI) (the only insurer) (opens in a new tab) | North Dakota Workforce Safety & Insurance, Coverage Requirements (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in North Dakota
Employer taxes and contributions on one employee's pay in North Dakota, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
- Employer taxes and contributions per check
- $213.47
- First check of the year
- Cost per check
- $2,521.16
- Pay included, first check
- Cost per year
- $65,098.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| North Dakota unemployment | 1% on the first $46,6001.00% non-construction for a positive-account employer (6.07% if the employer's own account is negative); construction 9.67% | $23.08None after check 21 | $466.00 | Job Service North Dakota, 2026 Unemployment Insurance Tax Rate Schedules (PDF) (opens in a new tab) |
| Employer taxes and contributions | $213.47 | $5,098.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,521.16 | $65,098.00 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 13, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
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Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Job Service North Dakota, Learn about taxes (opens in a new tab)
- Job Service North Dakota, 2026 Unemployment Insurance Tax Rate Schedules (PDF) (opens in a new tab)
- Job Service North Dakota, Employer's Handbook for the Unemployment Insurance Program (PDF) (opens in a new tab)
- Job Service North Dakota, Employer's Guide (opens in a new tab)
- US DOL, FUTA Credit Reductions (opens in a new tab)
- North Dakota Office of State Tax Commissioner, Income Tax Withholding (opens in a new tab)
- ND Office of State Tax Commissioner, Income Tax Withholding Rates & Instructions for wages paid in 2026 (PDF) (opens in a new tab)
- N.D.C.C. §40-05.1-06 (home rule city powers) and §11-09.1-05 (home rule county powers) (opens in a new tab)
- ND Department of Labor and Human Rights, ND Minimum Wage & Work Conditions Summary Poster (PDF) (opens in a new tab)
- ND Department of Labor and Human Rights, Wage and Hour FAQ (opens in a new tab)
- ND Department of Labor and Human Rights, Wage and Hour Topics (opens in a new tab)
- ND Department of Labor and Human Rights, Required Employer Posters (opens in a new tab)
- North Dakota Workforce Safety & Insurance, Coverage Requirements (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.