North Dakota Property Tax Overview

1. Key Statistics

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

2. How the North Dakota Property Tax Rate Is Applied

The effective property tax rate of 0.99 % represents the average amount of tax paid per dollar of home value. It is derived by dividing the total property tax bill by the assessed value of the property.

Example Tax Bills (based on the effective rate)

Calculations use the 0.99 % effective rate:
$250,000 × 0.0099 ≈ $2,480; $500,000 × 0.0099 ≈ $4,961.

3. Variation by County

North Dakota’s property tax system is administered at the county level. While the statewide effective property tax rate is 0.99 %, individual counties may levy rates that are higher or lower depending on local budgets, school district funding, and other municipal needs. Property owners should consult the tax assessor’s office in the specific county where the property is located for the exact rate.

4. Comparison to the National Average

• Effective rate: North Dakota’s 0.99 % is 2.52 % higher than the national average effective rate of 0.97 % (0.99 % ÷ 0.97 % ≈ 1.0252).
• Ranking: With an effective rate that places it 31st among the 52 U.S. states and territories, North Dakota falls in the middle of the national distribution.

5. Considerations for Retirees

• Homestead Exemptions: North Dakota offers a senior citizen exemption that can reduce the taxable value of a primary residence for qualifying homeowners aged 65 or older who meet income limits.
• Property Tax Deferral: Some counties provide a property tax deferral program for eligible seniors, allowing them to postpone payment until the property is sold or transferred.
• Impact on Fixed Incomes: Because the effective rate is close to the national average, the overall tax burden for retirees is comparable to many other states, but local exemptions can lower the net amount.

6. Considerations for Landlords

• Tax Treatment: Rental properties are assessed and taxed in the same manner as owner‑occupied homes; the North Dakota property tax rate applies to the full assessed value of the rental unit.
• Deductibility: For federal income‑tax purposes, landlords can deduct property taxes paid on rental real‑estate as an expense on Schedule E (IRS).
• Local Variability: Since counties set the base rates, landlords with properties in different counties may experience varying tax obligations.

7. Frequently Asked Questions

Note: All figures reflect the 2023 5‑year American Community Survey estimates and are presented for informational purposes. Property tax laws and rates are subject to change; consult local tax authorities for the most current information.