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Taxes
North Dakota Payroll Taxes 2026: Complete Overview for Employers
North Dakota graduated 0%–2.5% (very low) income tax, SUI on the first $40,700, and all employer tax obligations explained.
Practical guides on ND payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
North Dakota’s income tax tops out at just 2.5%, one of the lowest rates in the nation — barely more than states with no income tax at all.
At $40,700, North Dakota’s SUI wage base is well above average, increasing per-employee unemployment insurance costs.
North Dakota only requires monthly pay frequency, giving employers maximum flexibility in scheduling payroll cycles.
North Dakota graduated 0%–2.5% (very low) income tax, SUI on the first $40,700, and all employer tax obligations explained.
Get your EIN, register with North Dakota, set up withholding, new hire reporting — the complete checklist.
New employer rate 1.02%, experienced range 0.08%–9.69%, wage base $40,700.
North Dakota minimum wage $7.25/hr. North Dakota’s minimum wage is $7.25/hr, matching the federal rate. Tipped employees may be paid $4.86/hr.
IRS classification rules, North Dakota-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for North Dakota small businesses.