2025 Tax Year

North Dakota Side Hustle Tax Calculator

Calculate your North Dakota state tax (2.50%), federal tax, and self-employment tax on 1099 income.

ND2.50%

780,000 residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

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State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

North Dakota side hustlers enjoy some of the lowest income tax rates in the nation. The Peace Garden State has a simple two-bracket system with rates of just 1.95% and 2.50%—making it one of the most tax-friendly states for freelancers and gig workers.

North Dakota Tax Guide

How Side Hustle Taxes Work in North Dakota

North Dakota has exceptionally low tax rates:

**North Dakota state tax rates (2025):** - 1.95% on income up to $44,725 (single) - 2.50% on income over $44,725

**Key features:** - Among the lowest income tax rates in the country - No local income taxes - Simple two-bracket system

For context, North Dakota's top rate of 2.50% is lower than most states' lowest bracket.

Example

What North Dakota Side Hustlers Owe

Let's say you're a single filer in Fargo with a $48,000 W-2 job and $12,000 in side hustle income from freelance accounting, with $1,500 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $10,500 - Federal SE tax (15.3% of 92.35%): ~$1,485 - Federal income tax on side income: ~$2,310 (22% bracket) - North Dakota state tax (2.50%): ~$263 - **Total additional tax: ~$4,058**

Your effective tax rate is about 39%—among the lowest of any income-tax state.

Important Dates

North Dakota Tax Deadlines 2025

North Dakota estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use North Dakota Form ND-1ES for state estimated tax payments.

Save Money

Common Deductions for North Dakota Freelancers

North Dakota freelancers enjoy the nation's lowest income tax rates (1.95-2.50%). **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; important for those serving clients in Fargo, Bismarck, or across the state. **Equipment and supplies**: Computers, cameras, tools, and office supplies are deductible. **Professional services**: Accounting, legal, and tax preparation fees are fully deductible. **Health insurance premiums**: Self-employed individuals can deduct 100% of health insurance costs. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce federal taxable income, which North Dakota uses as its starting point—but with rates this low, the state savings are minimal. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. North Dakota starts with federal taxable income, so all Schedule C deductions apply. With the nation's lowest rates, ND is nearly as good as no-income-tax states.

Common Questions

North Dakota Side Hustle Tax FAQ

What is North Dakota's tax rate?

North Dakota has the lowest rates of any income-tax state: 1.95% on income up to $44,725 and just 2.50% above that.

Does North Dakota have local income taxes?

No, North Dakota has no local or city income taxes. The low state rate is your only North Dakota income tax.

How does North Dakota compare to other states?

North Dakota's 2.50% top rate is lower than most states' lowest brackets. Only no-income-tax states are more favorable.

Do I need to register my side hustle in North Dakota?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), register with the North Dakota Secretary of State. LLCs must register with the Secretary of State. Sellers may need a Sales Tax Permit.

When are North Dakota quarterly estimated taxes due?

North Dakota follows federal quarterly deadlines: April 15, June 16, September 15, and January 15. Use Form ND-1ES for payments.

Is North Dakota good for side hustlers?

Yes, North Dakota has the lowest income tax rates of any state with an income tax. A freelancer earning $50,000 would pay only about $1,000 in ND state taxes—less than half what they'd pay in most other states.

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