Cost of Living in North Dakota
Things cost about ▼ 11% less in North Dakota than the national average.
What Things Cost in North Dakota
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
North Dakota effectively eliminated its income tax in 2024 for the vast majority of residents, making it one of the most tax-friendly states in the country. Combined with a cost of living about 10% below the national average and housing roughly 20% below, North Dakota offers strong financial value. Fargo, the largest city, has built a growing tech scene and startup culture alongside its traditional agricultural and energy economy. The state's economy was transformed by the Bakken oil boom, which brought wealth but also volatility. For remote workers with the flexibility to live anywhere, North Dakota's combination of no income tax and low cost of living is hard to beat.
North Dakota at a Glance
Taxes in North Dakota
North Dakota's state income tax tops out at Up to 2.5%. The combined sales tax averages 5%. Property taxes run about 0.94% of home value, which on a $238,000 median home means roughly $2,237/year.
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FAQ About North Dakota
Effectively no, as of 2024. North Dakota eliminated its individual income tax for the vast majority of residents. Only the very highest earners may still owe a small amount. This makes North Dakota one of the most tax-friendly states in the country, particularly combined with its low cost of living.
Fargo offers a strong quality of life for its size: affordable housing, low crime, good schools, a growing tech sector, and a downtown that has been revitalized with restaurants and breweries. The metro area has about 250,000 people. The main trade-off is winter: temperatures regularly drop below minus 20°F, and the cold season is long. People who can handle the weather often find Fargo to be an excellent value.
Very cold. January averages around 10°F in Fargo and lower in western parts of the state. Wind chill values of minus 30 to minus 50 are not unusual. Blizzards close roads multiple times per winter. This is not a minor consideration but a fundamental lifestyle factor. The cold season runs roughly from November through March, and even October and April can bring snow.