Effective January 1, 2011, a new corporate income tax rate lowered the percentage range at which corporations are taxed. Currently, the corporate income tax rate range is 1.68% to 5.15%.
Tax Rate Breakdown
If North Dakota taxable Income is:
The tax is:
Over
But Not Over
$0
$25,000
1.68% of taxable income
$25,000
$50,000
$420.00 + 4.23% of the amount over $25,000
$50,000
$1,477.50 + 5.15% of the amount over $50,000
For example, a business with a taxable income of $28,000 would pay a corporation tax of $420 plus 4.23 percent of the amount over $25,000 (see calculations below).
In addition, new corporations that qualify as primary sector businesses may pay $0 in corporate income taxes for the first five years of their existence in North Dakota, if they apply for and are granted an exemption through the State Board of Equalization. Significant expansions beyond the initial location of a primary sector business may apply for an additional five-year corporate income tax exemption.
