The short version
- Social Security taxed?
- No
- Income tax
- Brackets 1.95%–2.50%
- Property tax on a $300,000 home
- ≈ $2,760 / yr ($230 / mo)
- Everyday cost index (U.S. = 100)
- 91
- January / July high
- 18°F / 83°F
- Sales tax (state + local avg)
- 7.09%
Retiring in North Dakota
The lowest income tax brackets in the country and low living costs. Watch out: winters are the harshest in the lower 48.
How North Dakota taxes your retirement income
Social Security: not taxed at all.
Pensions: Pensions taxed as regular income at low rates.
401(k) and IRA withdrawals: 401(k)/IRA withdrawals taxed as regular income.
The setup: Brackets 1.95%–2.50%.
Property tax & senior breaks
The average effective property tax rate is about 0.92% — roughly $2,760 a year ($230 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Homestead credit for homeowners 65+ with modest income.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 9% below the U.S. average. The combined state and average local sales tax is 7.09%.
Weather
January days top out around 18°F and July days around 83°F, with roughly 197 sunny days a year. Watch out for: Among the coldest winters in America; blizzards.
Healthcare
Sanford Health makes Fargo care good; the west means long distances.