North Dakota
Overall Rating for Taxes on Retirees: Tax-friendly
State Sales Tax: 5% state levy. Localities can add as much as 3.5%, and the average combined rate is 6.83%, according to the Tax Foundation. “New farm machinery, new farm machinery attachments or new irrigation equipment [used] exclusively for agricultural purposes” is taxed by the state at 3%. Local taxes may still apply.
State Income Tax Range: Low: 1.10% (on up to $38,700 of taxable income for singles and up to $64,650 for married couples filing jointly); High: 2.90% (on taxable income over $424,950)
State Taxes on Social Security: Benefits are taxed to the same extent as on the federal tax return.
Property Taxes: The median property tax on North Dakota’s median home value of $164,000 is $1,729.
