North Dakota: State Tax on Investment Income
Direct answer
In North Dakota, a $10,000 long-term capital gain costs about $250 in state tax (top-rate estimate), because investment income is taxed as ordinary income up to 2.50%. Federal tax is separate.
North Dakota at a glance
- Investment income taxTaxed as ordinary income (top marginal 2.50%)
- State personal income taxGraduated, top 2.50%
State tax on a $10,000 long-term capital gain
Estimate for a single filer. The graduated-state figure applies the top marginal rate and overstates real liability; actual tax is lower because lower brackets are taxed at lower rates. Federal capital-gains tax is separate and not included here.
| Long-term capital gain | $10,000 |
| North Dakota state tax | −$250 |
| Net after state tax | $9,750 |
Calculate your real numbers
These guides summarize published 2026 rates for planning. For your actual figures — including your filing status, holding period, and other income — use a free CompoundFig calculator:
Frequently asked questions
Does North Dakota tax investment income in 2026?
Yes. In North Dakota, investment income (interest, dividends, and capital gains) is taxed as ordinary income, with a top marginal rate of 2.50%. The federal tax is separate.
Are capital gains taxed the same as ordinary income?
At the state level, most states treat long-term capital gains as ordinary income (there is no special low state rate). The federal government does give preferential long-term capital-gains rates, but your state tax depends on that state's own rules — which is exactly what this guide summarizes.
How much state tax would I owe on a $10,000 long-term gain in North Dakota?
Using the published 2026 rate, roughly $250 in state tax (this is an illustrative top-rate estimate; your actual graduated liability is lower because lower brackets are taxed at lower rates). Use the calculators below for your exact figure.
Where do these numbers come from?
State tax structures and rates reflect the Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (2026-08-11). Rates change yearly, so confirm with the state revenue department or a qualified tax professional before making decisions.
Sources: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (https://taxfoundation.org/data/all/state/state-income-tax-rates-2026, retrieved 2026-08-11).
This page is for general education only and is not tax advice. State tax rates and brackets change yearly and vary by filing status, deductions, and credits. Confirm current figures with your state revenue department or a qualified tax professional. CompoundFig content is reviewed for accuracy by Priya Nair, CFP®.