North Dakota Capital Gains Tax (2026)
North Dakota taxes capital gains as ordinary income on a graduated scale from 0% up to a top rate of 2.5%. North Dakota excludes 40% of net long-term capital gains, which the calculator models. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and North Dakota tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. North Dakota adds state tax on top, at up to 2.5%.
How North Dakota treats capital gains
North Dakota taxes capital gains as ordinary income on a graduated scale from 0% up to a top rate of 2.5%. North Dakota excludes 40% of net long-term capital gains, which the calculator models. North Dakota uses the federal standard deduction ($16,100 single / $32,200 married in 2026), which the estimate subtracts first.
Good news if you hold long. North Dakota excludes 40% of net long-term capital gains from state tax, and the calculator models that exclusion.
2026 North Dakota income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $48,475 | 0% |
| $48,475 – $244,825 | 1.95% |
| Over $244,825 | 2.5% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in North Dakota with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). North Dakota adds an estimated $203, for a combined $3,953, an effective 15.8% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does North Dakota tax capital gains?
Yes. North Dakota taxes capital gains as ordinary income. North Dakota taxes capital gains as ordinary income on a graduated scale from 0% up to a top rate of 2.5%. North Dakota excludes 40% of net long-term capital gains, which the calculator models.
What will I pay on a long-term gain in North Dakota?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $3,953: $3,750 federal plus $203 North Dakota tax, an effective 15.8%.
Do I still owe federal capital gains tax in North Dakota?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and North Dakota tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: North Carolina · Ohio
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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