Selling a business in North Dakota: what the state takes (2026)
North Dakota’s top individual income tax rate is 2.5%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 2.5%
- Top North Dakota income tax rate (2026)
- $375,000
- State tax on a $25M long-term gain
- 25.3%
- Combined federal and state rate on $25M
- 41 of 51
- Rank by total tax on $25M (1 = highest)
How North Dakota taxes a business sale
- Income tax
- Top rate 2.5%: Over $244,825 (single, 2025 indexed amount; 2026 indexed figure not retrieved).
- Long-term capital gains
- North Dakota taxable income is reduced by 40% of net long-term capital gain (net of short-term loss) allocated to North Dakota, with no dollar cap; the rest is taxed at 2.5%, an effective rate of 1.5% on the gain.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| North Dakota tax | $150,000 | $375,000 | $750,000 |
| Total tax | $2,530,000 | $6,325,000 | $12,650,000 |
| Effective combined rate | 25.30% | 25.30% | 25.30% |
| Net proceeds after tax | $7,470,000 | $18,675,000 | $37,350,000 |
| Extra tax versus Texas | $150,000 | $375,000 | $750,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- North Dakota tax
- $375,000
- Gain excluded or deducted
- $10,000,000
- Taxable gain at 2.5%
- $375,000
- Total tax
- $6,325,000
- Effective rate on the gain
- 25.30%
- Net proceeds after tax
- $18,675,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- Minnesota34.6% combined, $16.35M net
- Montana27.9% combined, $18.02M net
- South Dakota23.8% combined, $19.05M net
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
North Dakota figures are for tax year 2026. 2026 inflation-adjusted brackets not found; 2025 Tax Commissioner schedule used (top bracket starts at $244,825 single). Rates unchanged for 2026. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1N.D.C.C. 57-38-30.3 (rate schedules and 40% long-term capital gain exclusion, subsection 2(d))
- 2ND Tax Commissioner 2025 Form ND-1 tax tables and rate schedules
- 3Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Feb 11, 2026). Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): North Dakota,” 2026, https://laurent.capital/research/seller-tax-map/north-dakotaLink (HTML)
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