North Dakota was ranked 34th in total state tax collections (except severance taxes) per capita in FY 2001.

Income tax rates for an individual have a range of 2.1% to 5.54%

Corporate income tax rates range from 2.6% to 7%

State sales tax is 5% plus city sales tax rate of 1%. Restaurants and hospitality includes an additional 1% for hospitality tax. There is also an additional 3% lodging tax for hotels and motels.

Retail sales of new farm machinery, ag irrigation equipment, and new mobile homes have a sales tax of 7%

Alcoholic beverages have a sales tax of 7%

Certain motor vehicle rentals have a sales tax surcharge of 3%

Exemptions include:

• No sales/use tax on food for human consumption off the premises
• No sales/use tax on electricity, water, and sewer
• No sales tax on computer/telecommunications equipment for a new primary sector business
• No interstate sales tax on communications over phone lines
• No tax on personal property (including inventory, equipment used in manufacturing, materials in process, and accounts receivable)

Incentives for business tax can be applied for and granted for corporate income tax and corporate property tax.