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North Dakotans See Lower State Income Taxes Tied to Federal Policy Changes

By Bill Dubensky Apr 16, 2026 | 6:25 AM

(Photo by Michael Achterling/North Dakota Monitor)

 

(North Dakota Monitor) – Many North Dakotans are seeing a larger state income tax refund this year, in part due to recent changes in federal tax policy, Tax Commissioner Brian Kroshus said.

The One Big Beautiful Bill Act reduced federal taxable income for many people, Kroshus said, which in turn reduced North Dakotans’ state tax liability. The federal changes include no taxes on tips and no tax on overtime earnings.

So far this tax season, North Dakota state tax refunds are averaging about $430 per filer, an average increase of just under $22, Kroshus said. That includes both single and joint filers.

The Tax Commissioner’s Office had processed 375,000 tax returns with a total state refund amount of $72.5 million, Kroshus said. That’s an increase in refunds of $3.1 million compared to last year.

 

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