Flat tax rate: 1.5%
- those earning less than $54,725 (adj income): zero state income tax
- current state income tax in North Dakota: five bracket with a top rate of 2.9%
From the linked article:
The state's financial reserves are flush with cash and far ahead of forecasts due to strong oil prices, steady production and an influx of federal coronavirus relief funds. The state’s general fund, which is financed mostly by taxes on income, sales and energy, is projected to have an ending balance of $684 million when the current budget cycle ends in June 2023.
Burgum said the income tax reduction was a way to return some of North Dakota’s budget surplus to taxpayers instead of stockpiling it.
The tactic by the second-term Republican governor to include lawmakers in the proposal comes after he asked North Dakotans last year to sign a petition endorsing his plan to use some of the state’s bulging surpluses to offset income taxes. The unorthodox move was perceived as an end-run around the GOP-led Legislature, which controls government spending and initially signaled no appetite for the idea.
In the end, the Legislature approved a bill to provide a $350 income tax credit for each North Dakota resident filing a return for 2021 and 2022. Burgum signed the legislation despite pushing for his preferred $500 income tax credit.
In addition, the North Dakota Legacy Fund, link here:
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