25.1052.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Christianson, K. Anderson, Henderson, Hendrix, Holle, Koppelman,
Motschenbacher, Osowski, VanWinkle, Vetter
Senator Meyer
A BILL for an Act to amend and reenact subsections 1 and 7 of section 57-38-30.3 of the North
Dakota Century Code, relating to income tax rates for individuals, estates, and trusts and the
marriage penalty credit; to repeal section 57-38-01.28 of the North Dakota Century Code,
relating to the marriage penalty credit; and to provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 1 of section 57-38-30.3 of the North Dakota
Century Code is amended and reenacted as follows:
1.A tax is hereby imposed for each taxable year upon income earned or received in that
taxable year by every resident and nonresident individual, estate, and trust. A taxpayer
computing the tax under this section is only eligible for those adjustments or credits
that are specifically provided for in this section. Provided, that for purposes of this
section, any person required to file a state income tax return under this chapter, but
who has not computed a federal taxable income figure, shall compute a federal
taxable income figure using a pro forma return in order to determine a federal taxable
income figure to be used as a starting point in computing state income tax under this
section. The tax for individuals is equal to North Dakota taxable income multiplied by
the rates in the applicable rate schedule in subdivisions a through dc corresponding to
an individual's filing status used for federal income tax purposes. For an estate or
trust, the schedule in subdivision ed must be used for purposes of this subsection.
a.Single, other than head of household or surviving spouse, and married filing
separately.
If North Dakota taxable income is:
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Over Not over The tax is equal toOf amount over
$0 $44,725 $0.00 + 0.00% $0
$44,725 $225,975 $0.00 + 1.95% $44,725
$225,975 $3,534.38 + 2.50% $225,975
$0 $48,475 $0.00 + 0.00% $0
$48,475 $244,825 $0.00 + 1.95% $48,475
$244,825 $3,828.83 + 2.50% $244,825
b.Married filing jointly and surviving spouse.
If North Dakota taxable income is:
Over Not over The tax is equal toOf amount over
$0 $74,750 $0.00 + 0.00% $0
$74,750 $275,100 $0.00 + 1.95% $74,750
$275,100 $3,906.83 + 2.50% $275,100
$0 $96,950 $0.00 + 0.00% $0
$96,950 $489,650 $0.00 + 1.95% $96,950
$489,650 $7,657.65 + 2.50% $489,650
c.Married filing separately.
If North Dakota taxable income is:
Over Not over The tax is equal toOf amount over
$0 $37,375 $0.00 + 0.00% $0
$37,375 $137,550 $0.00 + 1.95% $37,375
$137,550 $1,953.41 + 2.50% $137,550
d.Head of household.
If North Dakota taxable income is:
Over Not over The tax is equal toOf amount over
$0 $59,950 $0.00 + 0.00% $0
$59,950 $250,550 $0.00 + 1.95% $59,950
$250,550 $3,716.70 + 2.50% $250,550
$0 $72,713 $0.00 + 0.00% $0
$72,713 $367,238 $0.00 + 1.95% $72,713
$367,238 $5,743.24 + 2.50% $367,238
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e.d.Estates and trusts.
If North Dakota taxable income is:
Over Not over The tax is equal toOf amount over
$0 $3,000 $0.00 + 0.00% $0
$3,000 $10,750 $0.00 + 1.95% $3,000
$10,750 $151.13 + 2.50% $10,750
$0 $3,250 $0.00 + 0.00% $0
$3,250 $11,650 $0.00 + 1.95% $3,250
$11,650 $163.80 + 2.50% $11,650
f.e.For an individual who is not a resident of this state for the entire year, or for a
nonresident estate or trust, the tax is equal to the tax otherwise computed under
this subsection multiplied by a fraction in which:
(1)The numerator is the federal adjusted gross income allocable and
apportionable to this state; and
(2)The denominator is the federal adjusted gross income from all sources
reduced by the net income from the amounts specified in subdivisions a and
b of subsection 2.
In the case of married individuals filing a joint return, if one spouse is a resident
of this state for the entire year and the other spouse is a nonresident for part or
all of the tax year, the tax on the joint return must be computed under this
subdivision.
g.f.The tax commissioner shall prescribe new rate schedules that apply in lieu of the
schedules set forth in subdivisions a through ed. The new schedules must be
determined by increasing the minimum and maximum dollar amounts for each
income bracket for which a tax is imposed by the cost-of-living adjustment for the
taxable year as determined by the secretary of the United States treasury for
purposes of section 1(f) of the United States Internal Revenue Code of 1954, as
amended. For this purpose, the rate applicable to each income bracket may not
be changed, and the manner of applying the cost-of-living adjustment must be
the same as that used for adjusting the income brackets for federal income tax
purposes.
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h.g.The tax commissioner shall prescribe an optional simplified method of computing
tax under this section that may be used by an individual taxpayer who is not
entitled to claim an adjustment under subsection 2 or credit against income tax
liability under subsection 7.
SECTION 2. AMENDMENT. Subsection 7 of section 57-38-30.3 of the North Dakota
Century Code is amended and reenacted as follows:
7.A taxpayer filing a return under this section is entitled to the following tax credits:
a.Family care tax credit under section 57-38-01.20.
b.Renaissance zone tax credits under sections 40-63-04, 40-63-06, and 40-63-07.
c.Agricultural business investment tax credit under section 57-38.6-03.
d.Seed capital investment tax credit under section 57-38.5-03.
e.Planned gift tax credit under section 57-38-01.21.
f.Biodiesel fuel or green diesel fuel tax credits under sections 57-38-01.22 and
57-38-01.23.
g.Internship employment tax credit under section 57-38-01.24.
h.Workforce recruitment credit under section 57-38-01.25.
i.Marriage penalty credit under section 57-38-01.28.
j.Research and experimental expenditures under section 57-38-30.5.
k.j.Geothermal energy device installation credit under section 57-38-01.8.
l.k.Long-term care partnership plan premiums income tax credit under section
57-38-29.3.
m.l.Employer tax credit for salary and related retirement plan contributions of
mobilized employees under section 57-38-01.31.
n.m.Income tax credit for passthrough entity contributions to private education
institutions under section 57-38-01.7.
o.n.Angel investor tax credit under section 57-38-01.26.
p.o.Income tax credit for employment of individuals with developmental disabilities or
severe mental illness under section 57-38-01.16.
q.p.Adoption tax credit under section 57-38-01.38.
r.q.Tax credit for contributions to a maternity home, child-placing agency, or
pregnancy help center under section 57-38-01.39.
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s.r.Apprenticeship tax credit under section 57-38-01.40.
t.s.Twenty-first century manufacturing and animal agricultural workforce incentive
under section 57-38-01.41.
SECTION 3. REPEAL. Section 57-38-01.28 of the North Dakota Century Code is repealed.
SECTION 4. EFFECTIVE DATE. This Act is effective for taxable years beginning after
December 31, 2024.
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