Does Indiana have lower taxes than North Dakota?

On wages alone, North Dakota is lower (2.04% vs 3.05%). Use the calculator above to compare your specific situation.

Which state has the lowest overall tax burden?

Among the 50 states, Alaska, Wyoming, South Dakota, Florida, Tennessee, Texas, Nevada, Washington, and New Hampshire consistently rank lowest because they have no broad personal income tax. Property and sales taxes can still be material — Texas, for example, has high property tax.

Does North Dakota tax retirement income differently than Indiana?

Yes — retirement treatment varies. Some states fully exempt Social Security, pensions, or both. See each state's guide for current rules.

Does moving partway through the year split my taxes?

Yes. You will file part-year resident returns in both states. Most states tax income earned while a resident plus state-sourced income while a non-resident.

How accurate is this comparison?

It uses 2026 IRS federal brackets and each state's average effective rate. Local income taxes, special surtaxes, and personal credits can shift the result by several thousand dollars.

Are property and sales tax included in the calculator?

The calculator focuses on income and capital-gains tax. Use the property tax calculator and the sales-tax rows above for those components.

North Dakota vs Indiana Taxes (2026)

Side-by-side comparison of income tax, property tax, sales tax, capital gains, and retirement treatment between North Dakota and Indiana for tax year 2026. Use the calculator below to estimate how much you would save (or pay) after relocating.

Tax	North Dakota	Indiana
State income tax (effective)	2.04%	3.05%
Long-term capital gains	2.04%	3.05%
Property tax (effective)	0.98%	0.84%
Combined sales tax	7.04%	7.00%
Retirement income	ss-exempt	fully-taxable
Income system	progressive	flat

Tax savings calculator

Filing status

Annual income

Pre-tax retirement

Long-term capital gains

Estimated 2026 burden

North Dakota total tax

$17,388

Indiana total tax

$18,386

North Dakota state tax

$2,018

Indiana state tax

$3,016

Difference

+$999

Indiana costs more

As % of income

0.83%

Federal tax is identical in both columns and excluded from the difference. Numbers use 2026 IRS brackets, state effective rates, and the 3.8% NIIT where applicable.

Relocation analysis

Moving from North Dakota to Indiana would cost an extra $999 per year on this profile.

Property tax difference on a $400k home: $560/yr.
Sales tax difference on $50k of taxable spending: $20/yr.
Capital gains difference per $10k gain: $101.

Key differences

North Dakota: Top 2.5% bracket — lowest progressive top rate in the U.S.
Indiana: Flat 3.05% individual income tax; low corporate at 4.9%.
Income system: North Dakota is progressive, Indiana is flat.
Retirement: North Dakota — ss exempt; Indiana — fully taxable.

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Comparison FAQs

It depends on income mix. Indiana has an effective income rate of 3.05% vs North Dakota's 2.04%. Property tax (0.98% vs 0.84%) and sales tax can swing the answer.

Related resources

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