North Dakota Capital Gains Tax Calculator
North Dakota taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the North Dakota income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the North Dakota state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced North Dakota Office of State Tax Commissioner brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the North Dakota state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the North Dakota Office of State Tax Commissioner so you can confirm any special rule that applies to you.
North Dakota taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $390.00 in North Dakota state tax, an effective rate on the gain of 1.95%.
How North Dakota taxes capital gains
North Dakota taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the North Dakota bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
North Dakota capital gains tax: frequently asked questions
How are capital gains taxed in North Dakota?
North Dakota taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the North Dakota income tax brackets published by the North Dakota Office of State Tax Commissioner. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the North Dakota Office of State Tax Commissioner.
How much state tax will I pay on a $20,000.00 capital gain in North Dakota?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $390.00 of North Dakota state income tax for a single filer, an effective rate on the gain of 1.95%. Your figure depends on your total income and filing status; enter them above.
Does North Dakota have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the North Dakota Office of State Tax Commissioner; this calculator uses the ordinary income method and links the source.
What are North Dakota's income tax rates for 2025?
North Dakota uses a three-bracket structure under NDCC §57-38-30.3. For single filers: 0% on income up to $44,725; 1.95% on $44,726-$225,975; and 2.5% on income over $225,975. For married filing jointly: 0% up to $74,750; 1.95% on $74,751-$275,100; and 2.5% over $275,100. These reduced rates took effect for tax year 2024 under HB 1158 (2023).
Does North Dakota have a standard deduction?
North Dakota conforms to the federal standard deduction. For 2024, the amounts are $14,600 for single filers and married filing separately, $29,200 for married filing jointly, and $21,900 for head of household. These are adjusted annually for inflation by the IRS, and North Dakota adopts the updated federal amounts.
How low is North Dakota's income tax compared to other states?
North Dakota has one of the lowest income tax burdens in the United States. After HB 1158 (2023) took effect for 2024, the large 0% bracket means many middle-income residents pay no North Dakota income tax at all. The top rate of 2.5% is well below the national average for states with income taxes.
Does North Dakota tax Social Security or retirement income?
North Dakota does not tax Social Security benefits. Certain retirement income, including distributions from qualified retirement plans, may also receive favorable treatment. Review the North Dakota Office of State Tax Commissioner guidance for the current rules on retirement income exclusions.
Official sources
- North Dakota income tax rates applied to capital gains (tax year 2025): North Dakota Office of State Tax Commissioner, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the North Dakota Office of State Tax Commissioner.