Key figures
North Dakota payroll
2026, with sources
Withholding and unemployment insurance
North Dakota’s individual income tax has three rates — 0%, 1.95% and 2.5% — and the Tax Commissioner publishes withholding tables each year. There is no state W-4: withholding is computed from the employee’s federal Form W-4. Bonuses and commissions paid separately from regular wages can be withheld at a flat 1.50%.
Employers register for withholding with the Tax Commissioner and file Form 306 quarterly — April 30, July 31, October 31 and January 31 — electronically once the prior year’s withholding reached $1,000. Form 307, the annual reconciliation, is filed electronically by January 31 with the W-2s and any 1099s showing North Dakota tax.
The 2026 UI wage base is $46,600, set each year at 70% of the statewide average wage. A new non-construction employer starts at 1.00%; construction employers start at 9.67%, and a new account that falls into a negative balance moves to 6.07%. After that, experienced rates run from 0.07% to 1.10% for positive-balance accounts and from 6.07% to 9.67% for negative ones.
WSI is the only option
Workers’ compensation in North Dakota comes only from Workforce Safety & Insurance. A company with employees elsewhere has to open a separate WSI account for its North Dakota staff; its national carrier’s policy doesn’t extend to them. Premiums are set by WSI by job classification.
Wage rules
The Department of Labor and Human Rights enforces wage payment, including final pay on separation, and will issue an independent contractor verification on application.
- Minimum wage: $7.25, the federal rate.
- No state paid leave or paid sick leave mandate.
- No local payroll tax.
- New hires reported within 20 days of the first day of work, including rehires after a 60-day break.
Deadlines
- QuarterlyJob Service contribution and wage report
- Quarterly — Apr 30, Jul 31, Oct 31, Jan 31Withholding return and paymentForm 306
- Jan 31Annual reconciliation, with W-2s filed electronicallyForm 307
- Within 20 days of hireNew-hire report
The federal baseline
This page covers what North Dakota adds. The federal rules underneath it apply here too.
Common questions
Can we cover North Dakota employees on our existing workers’ comp policy?
No. North Dakota is one of a handful of monopolistic states: workers’ compensation is written only by Workforce Safety & Insurance, the state fund. A private policy, or a multistate policy’s coverage, doesn’t satisfy the requirement for North Dakota employees.
What UI rate does a new employer pay?
For most new employers outside construction, 1.00% on the first $46,600 of each employee’s 2026 wages. Job Service publishes the schedules each December; construction employers start at 9.67%.
Is there a North Dakota W-4?
No. North Dakota relies on the federal Form W-4, and the Tax Commissioner’s 2026 tables convert it into North Dakota withholding — separate methods for pre-2020 and current W-4s. Supplemental wages paid separately can be withheld at a flat 1.50%.
Payroll next door
- MTMontana payrollMontana payroll is UI at an industry rate (1.10% for services) plus 0.18% AFT on $47,300, a $10.85 minimum wage, no paid leave premiums, and final pay that can be due immediately.
- SDSouth Dakota payrollNo state withholding and no paid leave program. A new employer pays 1.20% Reemployment Assistance tax plus a 0.55% investment fee on the first $15,000 of wages.
- MNMinnesota payrollMinnesota added a 0.88% Paid Leave premium in 2026 (0.66% for small employers), charges UI on the first $44,000, requires earned sick and safe time and sets a $11.41 minimum wage.
How North Dakota compares
- No tax on wagesStates with no state income tax on wagesNorth Dakota: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programNorth Dakota: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesNorth Dakota: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the North Dakota guide
- AccountingAccounting and state tax in North DakotaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in North DakotaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in North DakotaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in North DakotaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in North DakotaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.