State retirement taxes · 2026
Does North Dakota tax retirement income?
Short answer: Yes — everything except Social Security. North Dakota does not tax Social Security benefits. No retirement exclusion, but the first $49,575 ($82,800 joint) of taxable income is taxed at 0%.
What’s taxed in North Dakota
2026 rules.
- Social SecurityNot taxed
- North Dakota does not tax Social Security benefits.
- PensionsTaxed
- Pensions are taxable, but a 0% bracket covers the first $49,575 of taxable income ($82,800 joint) in 2026.
- IRA & 401(k) withdrawalsTaxed
- IRA and 401(k) withdrawals are taxable, though the 0% bracket covers the first $49,575 ($82,800 joint) of taxable income.
- Military retirement payNot taxed
- Military retirement pay is 100% deductible, including for surviving spouses.
- Income tax rate2.5% top
- Three brackets for 2026: 0% up to $49,575 single ($82,800 joint), 1.95% up to $250,400 ($304,850 joint) and 2.5% above.
Does North Dakota tax Social Security?
North Dakota does not tax Social Security benefits.
The federally taxable part of Social Security is fully excluded, with no income or age limit.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in North Dakota?
Pensions are taxable, but a 0% bracket covers the first $49,575 of taxable income ($82,800 joint) in 2026.
North Dakota has no general retirement exclusion. Exceptions: military retirement (100%), the civil service retirement of dual-status military technicians, a limited licensed peace officer exclusion and Railroad Retirement benefits.
Public vs. private pensions: Treated the same: taxable.
Are IRA and 401(k) withdrawals taxed in North Dakota?
IRA and 401(k) withdrawals are taxable, though the 0% bracket covers the first $49,575 ($82,800 joint) of taxable income.
There is no IRA or 401(k) exclusion.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in North Dakota?
Military retirement pay is 100% deductible, including for surviving spouses.
What is North Dakota’s income tax rate?
3 brackets, topping out at 2.5%.
Three brackets for 2026: 0% up to $49,575 single ($82,800 joint), 1.95% up to $250,400 ($304,850 joint) and 2.5% above. Brackets are indexed; 2027 figures aren’t out yet.
2026 brackets. Each rate applies to taxable income above the amount shown.
| Single | Married, joint | Rate |
|---|---|---|
| $0 | $0 | 0% |
| $49,575 | $82,800 | 1.95% |
| $250,400 | $304,850 | 2.5% |
Standard deduction and exemptions
North Dakota starts from federal taxable income, so your federal standard or itemized deduction — including the 65+ add-on and the federal $6,000 senior deduction for 2025–2028 — is already applied.
What tax breaks do seniors get in North Dakota?
No North Dakota-specific senior deduction, but the federal 65+ add-on and the $6,000 senior deduction flow through.
What changed for 2026?
North Dakota automatically follows federal taxable income, so the 2025 federal changes (a higher standard deduction and an extra $6,000 for some seniors) apply for 2025–2028.
The 2026 rate schedule is official (Form ND-1ES 2026); exclusions come from the 2025 booklet.
How North Dakota compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- North DakotaThis pageFriendlySocial Security Not taxedTop rate: 2.5% top
- MinnesotaLess friendlySocial Security Partly taxedTop rate: 9.85% top
- MontanaLess friendlySocial Security TaxedTop rate: 5.65% top
- South DakotaTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
North Dakota retirement tax questions
Is North Dakota tax-friendly for retirees?
We rate North Dakota “Friendly” for 2026. North Dakota does not tax Social Security benefits. No retirement exclusion, but the first $49,575 ($82,800 joint) of taxable income is taxed at 0%. The top income tax rate is 2.5%.
Are required minimum distributions (RMDs) taxed in North Dakota?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow North Dakota’s rules for those accounts. IRA and 401(k) withdrawals are taxable, though the 0% bracket covers the first $49,575 ($82,800 joint) of taxable income.
Is military retirement pay taxed in North Dakota?
No. Military retirement pay is 100% deductible, including for surviving spouses.
What is North Dakota’s income tax rate for 2026?
Three brackets for 2026: 0% up to $49,575 single ($82,800 joint), 1.95% up to $250,400 ($304,850 joint) and 2.5% above. Brackets are indexed; 2027 figures aren’t out yet.
Sources for North Dakota
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
- State
- State
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