North Dakota Tax Guide for Employers (2026) 

North Dakota has one of the lowest state income tax rates in the nation and uses the federal W-4 as the basis for state withholding. The state has two calculation methods depending on which version of the federal W-4 the employee completed (pre-2020 vs. 2020 and later). 

North Dakota’s progressive income tax has very low rates, making it one of the least burdensome income tax states. The state uses the federal W-4 directly, with two calculation methods: one for employees who completed a pre-2020 W-4 and one for those using the 2020 or later version. This distinction affects how allowances vs. deductions are factored into the calculation. 

North Dakota supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 1.5%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.02%. 

Follow these steps to begin withholding North Dakota payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the North Dakota Office of State Tax Commissioner at nd.gov/tax
3. Register for SUTA with Job Service North Dakota at jobsnd.com
4. Employees use the federal W-4 (no separate state form required)
5. Submit a Netchex tax team request to enable North Dakota SIT and SUTA
6. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
7. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all North Dakota payroll taxes on your behalf. 

The following are general filing and deposit deadlines for North Dakota payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at North Dakota Office of State Tax Commissioner. 

Note: Deadlines are subject to change. Always confirm current requirements directly with North Dakota Office of State Tax Commissioner at https://www.tax.nd.gov/business/income-tax-withholding. 

The following official resources will help you stay current on North Dakota payroll tax requirements: 

• North Dakota Office of State Tax Commissioner
• North Dakota Tax Commissioner — Withholding

Does North Dakota use the federal W-4? 

Yes. North Dakota uses the federal W-4 form for state income tax withholding purposes. 

What is North Dakota’s top income tax rate? 

North Dakota’s top marginal income tax rate is 2.5%, one of the lowest in the nation. 

What is North Dakota’s SUTA wage base? 

North Dakota’s SUTA wage base is $43,800 per employee per year (2025). Verify at jobsnd.com. 

Does North Dakota have local payroll taxes? 

No. North Dakota does not impose local payroll taxes. 

What is North Dakota’s supplemental withholding rate? 

North Dakota uses a flat supplemental rate of 1.84%.