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North Dakota simplified to a 1.95% flat income tax in 2024 and is a monopolistic workers’ comp state (ND WSI only — no private insurers). Rippling handles ND State Tax Commissioner, Job Service ND, and WSI compliance.
North Dakota is a Great Plains economy with strengths in agriculture (largest wheat-producing state), oil and gas (Bakken shale), manufacturing, and a growing technology sector in Fargo. North Dakota simplified its income tax to a near-flat 1.95% rate in 2024 (one of the lowest in the US) and has a monopolistic workers’ comp system through ND Workforce Safety and Insurance. No state paid leave programs. North Dakota is a right-to-work state.
Rippling’s North Dakota payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| ND SUI (Job Service ND) | New employer 1.15% | On first $43,800 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required; North Dakota is a monopolistic state — purchase through ND Workforce Safety and Insurance |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| North Dakota State Income Tax | 1.95% flat | Simplified flat rate for most filers (2024 reform); prior multi-bracket system eliminated |
| North Dakota Income (2024) | ND Rate |
|---|---|
| Up to $525,000 (single) | 1.95% flat |
| Above $525,000 | 2.5% |
ND withholding remitted to ND Office of State Tax Commissioner. Annual ND W-3 reconciliation. Simplified from prior multi-bracket system effective January 2024.
Final Pay: North Dakota requires final pay on the next regularly scheduled payday. Accrued vacation: North Dakota Century Code treats promised vacation as wages if the employer’s policy provides for payout.
North Dakota enacted a major income tax simplification effective January 1, 2024: a flat 1.95% rate for most filers (income up to $525,000 single). This replaced a prior multi-bracket system with a top rate of 2.9%. North Dakota now has one of the lowest flat income tax rates in the US. High-income filers above $525,000 pay a 2.5% rate. Rippling applies the current ND withholding tables.
Like Ohio and Wyoming, North Dakota is a monopolistic workers’ comp state — employers must purchase coverage through ND Workforce Safety and Insurance (WSI), not private insurers. All ND employers with employees must register with WSI before their first employee starts and pay premiums quarterly. This is a key setup step for any North Dakota employer.
North Dakota’s minimum wage is $7.25/hour — matching the federal minimum. ND has not enacted a state minimum above the federal floor. Fargo and Bismarck do not have local minimums.
Fargo is North Dakota’s largest city and the primary technology and financial services hub, anchored by Microsoft, Sanford Health, and a growing startup community. Fargo tech salaries now approach Minneapolis/Twin Cities levels for senior talent, driven by University of North Dakota and NDSU talent pipelines and lower cost of living.
