North Dakota maintains a moderate property tax burden with a statewide effective rate of 0.92%. After voters heavily rejected a 2024 ballot measure to abolish property taxes entirely, the 2025 legislature passed major reformsincreasing the Primary Residence Credit to $1,600 and capping local tax levies at 3% to shield homeowners from budget creep (est., Tax Foundation 2026 / U.S. Census ACS).
Property taxes were the defining issue in North Dakota politics in 2024. After a highly publicized ballot measure to constitutionally abolish property taxes was defeated by voters in November, the legislature immediately moved to pass sweeping relief packages, capping local levies and expanding homeowner credits for 2025.
The Fractional Assessment Formula
North Dakota utilizes one of the most confusing property tax calculations in the nation. Assessors evaluate your home annually to its True and Full Value as of February 1st. However, you are taxed on a tiny fraction of that.
- Assessed Value: Defined by law as exactly 50% of your home’s True and Full Value.
- Taxable Value: For residential property, the Taxable Value is strictly 9% of the Assessed Value. (This means your Taxable Value is effectively 4.5% of your home’s True and Full market value).
Local jurisdictions (schools, cities, counties) then apply their mill levies to this tiny Taxable Value to calculate your bill.
North Dakota statewide effective rate. On a $350,000 home, expect approximately $3,220 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $200,000 | $1,840 | $153 | +$40 above avg. |
| $350,000 | $3,220 | $268 | +$70 above avg. |
| $500,000 | $4,600 | $383 | +$100 above avg. |
| $750,000 | $6,900 | $575 | +$150 above avg. |
| $1,000,000 | $9,200 | $766 | +$200 above avg. |
Estimates use 0.92% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
Primary Residence and Homestead Credits
To reduce the burden on homeowners, the state directly subsidizes a portion of your local tax bill:
- Primary Residence Credit: Enacted in 2023, this originally provided a $500 flat credit to all homeowners. Under new 2025 legislation (HB 1176), this credit was massively expanded up to $1,600. There are no age or income restrictions; you must simply apply and prove it is your primary residence.
- Homestead Property Tax Credit: Available exclusively to seniors (65+) and totally disabled individuals. To qualify, your household’s net income must be $70,000 or less, which then provides a direct reduction to your home’s taxable value.
The 2025 3% Levy Cap
Because there is no state limit on how much an individual property’s assessment can increase, homeowners are highly vulnerable to market spikes. If your home’s value doubles, your taxes could technically double.
To fix this, the 2025 legislature enacted a strict 3% cap on the annual growth of total property tax levies for local governments. Starting in the 2026 tax cycle, if property values spike massively, local governments will be forced to lower their mill rates to ensure their total revenue does not grow by more than 3%.
Estimated Tax Rates Across the Top 10 Counties
The western oil-producing counties of North Dakota (like Stark, McKenzie, and Williams) boast the lowest effective property tax rates in the state (under 0.85%). The massive influx of severance taxes and commercial oil revenue allows these counties to keep residential property taxes incredibly low.
Conversely, eastern agricultural and urban hubs like Cass (Fargo), Grand Forks, and Stutsman lack this oil revenue and must lean heavily on residential property taxes to fund local schools and cities, driving their rates above 1.15%.
| County | Effective Rate | Annual Tax on $350k Home | Notes |
|---|---|---|---|
| Cass County | 1.16% | $4,060 | Includes Fargo; highest population. |
| Burleigh County | 0.89% | $3,115 | Includes Bismarck (State Capital). |
| Grand Forks County | 1.20% | $4,200 | Includes Univ. of North Dakota. |
| Ward County | 1.12% | $3,920 | Includes Minot. |
| Williams County | 0.85% | $2,975 | Includes Williston (Bakken oil hub). |
| Morton County | 1.26% | $4,410 | Includes Mandan. |
| Stark County | 0.55% | $1,925 | Includes Dickinson; massive oil subsidy lowers rates. |
| Stutsman County | 1.62% | $5,670 | Includes Jamestown; highest rate in top 10. |
| Richland County | 1.57% | $5,495 | Includes Wahpeton. |
| McKenzie County | 0.81% | $2,835 | Includes Watford City (oil producing). |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). In North Dakota, property is taxed based on a complex formula where Taxable Value is effectively 4.5% of True and Full Value. This calculator uses historical “effective rates” to bypass the fractional math and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- Commercial or agricultural property, which are subject to a 10% assessment ratio (effectively 5% of True Value), resulting in slightly higher tax burdens.
- The failure to apply for the Primary Residence Credit, which must be proactively claimed by the homeowner.
How to get an accurate estimate:
- Find your home’s 100% True and Full Value on your County Assessor’s property search tool.
- Multiply the True Value by 4.5% (0.045) to find your Taxable Value.
- Multiply the result by your local consolidated mill levy, and divide by 1,000.
- Subtract your Primary Residence Credit (up to $1,600).
Data sources: Statewide effective rate and aggregate county effective rates derived from the Tax Foundation, Census ACS, and SmartAsset aggregations. Statutory rules, exemption limits, and 2025 legislative reforms from the North Dakota Office of State Tax Commissioner.
Return to the National Property Tax Calculator to compare North Dakota with other states.
