Quick answer
A single freelancer in North Dakota with $75,000 of profit pays no North Dakota income tax in 2026, but still owes about $15,495 of federal tax (self-employment tax of 15.3% on 92.35% of profit plus income tax), keeping about $59,505.
North Dakota has one of the lightest state income taxes in the country. It starts from federal taxable income and then taxes the first $49,575 of it at 0%. Many freelancers owe nothing or close to it. Here is how it works for 2026.
How North Dakota compares: in our 50-state take-home pay ranking, a single freelancer with $75,000 of profit keeps $59,505 in North Dakota after federal and state income tax, tied for 1st of 51 with the places that charge this freelancer no state income tax.
Set aside from every payment
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That is $0 of every $1,000 you receive
- Federal income tax share
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- Self-employment tax share
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- State tax share
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- Total to save this year
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Estimate for information only — not tax, legal or financial advice. Federal figures for tax year 2026; state and local taxes are not included unless you enter them. Check your situation with a CPA or enrolled agent.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit (12.4% part capped at $184,500 for 2026) |
| Federal income tax | 10%–37% |
| North Dakota income tax | 0% up to $49,575 of taxable income, 1.95% up to $250,400, 2.5% above (single, 2026) |
Why the tax is so small: the 0% bracket
North Dakota starts from your federal taxable income, the figure left after the federal standard deduction and the QBI deduction. Everything that lowers your federal taxable income lowers your North Dakota income too. A single filer then pays 0% on the first $49,575 and 1.95% on the amount above it, up to $250,400. Married couples filing jointly get a 0% bracket up to $82,800.
That’s why a single freelancer with $75,000 of profit owes no North Dakota income tax at all: federal taxable income is below $49,575.
Estimated payments — you may not need them
- You must pay North Dakota estimated tax with Form ND-1ES only if all four of these apply: you must pay federal estimated tax; your 2025 North Dakota net tax liability was $1,000 or more; you expect to owe $1,000 or more for 2026 after withholding; and your withholding will be less than the smaller of 90% of your 2026 tax or 100% of your 2025 tax.
- With the 0% bracket, many freelancers never reach $1,000 of North Dakota tax, so they don’t need state estimates at all.
- If you do, the due dates match the IRS: April 15, June 15 and September 15, 2026, and January 15, 2027. Pay online through ND TAP or “Make a Payment” at tax.nd.gov.
- Underpayments are charged interest at 12% a year from each due date.
Your federal payments still matter. Size them with the quarterly estimated tax calculator.
If you have an LLC
- A single-member LLC taxed as a sole proprietor reports its profit on your personal North Dakota return.
- North Dakota LLCs file an annual report with the Secretary of State by November 15. The fee is $50. Third-party companies mail look-alike notices that charge more; file through the Secretary of State’s FirstStop portal.
- Weighing an S corp election? The savings are federal payroll tax, since North Dakota’s income tax is already small.
How much to set aside
If your federal taxable income will stay under $49,575, enter 0 in the state field of the tax set-aside calculator. Above that, 1.95 is a safe choice; it overstates your real North Dakota cost, which leaves a cushion.
Sales tax
North Dakota’s state sales tax rate is 5%, and many cities and counties add their own. Most professional services aren’t taxed. If you sell physical products, register with the Office of State Tax Commissioner.
Frequently asked questions
Do North Dakota freelancers pay state income tax?
Often little or none. North Dakota starts from federal taxable income and taxes the first $49,575 at 0% for single filers, then 1.95% up to $250,400. A single freelancer with $75,000 of profit owes no North Dakota income tax.
Do I need to make North Dakota estimated tax payments?
Only if all four apply: you must pay federal estimates, your 2025 North Dakota net tax was $1,000 or more, you expect to owe $1,000 or more for 2026, and withholding falls short of 90% of 2026 tax or 100% of 2025 tax.
When is the North Dakota LLC annual report due?
November 15. North Dakota LLCs file an annual report with the Secretary of State for a $50 fee. Third-party companies mail look-alike notices that charge more, so file through the FirstStop portal.