News and Insights

North Dakota Reduces Corporate Tax Rates and Provides Property Tax Relief

Tax Development Jun 02, 2011

North Dakota’s House Bill 1047 (“HB 1047”), signed by Governor Dalrymple, will reduce North Dakota’s corporate income tax by 20% and property taxes by an estimated 15 to 19%.

HB 1047 reduces the corporate income tax rate for periods beginning January 1, 2011. The new tax rate will be 1.68% on the first $25,000 of taxable income. The rate on the next $25,000 of taxable income is reduced to 4.23%. And the rate on corporate income of more than $50,000 will be 5.15%. Further, HB 1047 continues the state’s 70% funding commitment to school districts and will result in the previously mentioned property tax savings.

Unlike most states, North Dakota has a budget surplus. With the passage and enactment of HB 1047, North Dakota has shown its commitment to a pro-business climate.


Andy Hammons