North Dakota paycheck calculator for hourly and salary pay 2025

Calculating paycheck in North Dakota

Here’s a step-by-step guide to walk you through the paycheck calculator:

1. Fill in the employee’s details 

This includes just two items: their name and the state where they live. This will help the tool calculate some of the employee’s local taxes.

2. Add the employee’s pay information

You should see fields that say pay type, pay rate, hours worked, pay date, and pay period. Start with “pay type” and select hourly or salary from the dropdown menu. 

If the employee is hourly, input their hourly wage under “pay rate” and fill in the number of hours they worked that pay period. If the employee worked more than 40 hours and thus accrued overtime, record 40 here and save the rest for “additional pay.”

If the employee is salaried, both the “pay rate” and “hours worked” fields will disappear. Instead, you’ll need to know how much the employee makes each pay period. You’ll put that into the field labeled “amount.” 

Then, select the pay date and the employee’s pay frequency—for example, if you pay them weekly or every two weeks. 

3. Input any additional pay the employee receives

If the employee is salaried, you will only see two fields: bonus and commission. Fill in those amounts, if applicable.

If the employee is hourly, you should see four fields: overtime worked, bonus, commission, and salary. This is your opportunity to add any additional pay they should receive this pay period. If the employee earned overtime, input the number of overtime hours they worked. The tool calculates overtime pay using time and a half.

4. Fill in the employee’s federal tax information

This includes the employee’s filing status, number of allowances, and additional withholdings. This is information you should be able to glean from the employee’s W-4 form. If you don’t yet have the employee’s W-4, the payroll calculator can fill in tax rates to help you create a semi-accurate paycheck estimate.

5. Fill in the employee’s state tax information

Again, this includes the employee’s filing status, number of allowances, and additional withholdings. This information can be taken from the employee’s state Form W-4. 

6. Calculate the employee’s paycheck

To see an estimate of the employee’s earnings for the pay period, select “calculate check.”

North Dakota income tax rate

Like most states, North Dakota has a graduated income tax rate, which means that the rate of taxation increases with income level. 

The state is known for its relatively low income tax rates. For 2024, North Dakota state income tax rates range from 1.95% to 2.50%. Employees who earn less than $44,725 generally do not pay North Dakota state income tax.

There are no additional local income taxes levied in North Dakota by cities or counties.

North Dakota tax withholdings

Every employer who pays North Dakota wages is subject to North Dakota wage withholding requirements. North Dakota wages typically include any wages paid to North Dakota residents regardless of where they’re earned or nonresident employees for work performed in North Dakota. 

A North Dakota-based employer paying wages to a North Dakota employee who works in another state does not have to withhold North Dakota state taxes if they’re required to withhold the other state’s income tax from the wages earned in that state.

In general, whenever federal wage withholding is required for North Dakota wages, North Dakota wage withholding is required as well. Wages that are exempt from federal wage withholding are generally also exempt from North Dakota wage withholding. North Dakota does not have its own state-level W-4 form. It relies on the federal W-4 form for determining income.

State and federal law does provide exemptions from North Dakota wage withholding for certain employees, including:

• Nonresident members of the U.S. uniformed forces and their nonresident spouses
• Nonresident employees of certain interstate carriers
• Native Americans who are enrolled members of a federally recognized tribe when the employee resides and performs their work on a federally recognized reservation
• Nonresident aliens of the United States ONLY IF an income tax treaty between the United States and the employee’s country of citizenship specifically exempts wages from taxation by a U.S. state
• Agricultural laborers employed by a North Dakota farmer or rancher 

North Dakota has reciprocity agreements with Minnesota and Montana, exempting wages paid to residents of these states from North Dakota income taxes.

In North Dakota, employers pay the entire cost of the state unemployment insurance (SUI) tax. This tax provides benefits to qualified unemployed or underemployed workers during periods of unemployment through no fault of their own. Employees are not subject to North Dakota SUI taxes. 

The employer SUI tax rate is currently 0.08% to 9.68%, depending on the business’s experience level, on the first $43,800 of an employee’s wages.

For specific information on how and where to register your business to submit state withholding and unemployment taxes in North Dakota, consult our payroll tax map.

In addition to North Dakota state income taxes, employers also have to consider federal tax withholdings. Money taken out for federal taxes goes toward federal income taxes, Social Security, and Medicare. An employee’s tax bracket depends on their gross income, excluding pre-tax deductions.

Employers are also responsible for making FUTA (Federal Unemployment Tax Act) payments. This is a federal unemployment tax and is separate from North Dakota’s state unemployment tax. It’s based on the wages you pay employees but is NOT deducted from their wages. The business must pay for it.

Opportunities for deductions on North Dakota paychecks

Aside from standard federal deductions, there are other common payroll deductions that you may need to apply if you offer benefits. Since employers subtract this income before taxes, these deductions can move employees to a lower tax bracket. 

Some common pre-tax deductions include: 

• Health insurance 
• Dental and vision benefits 
• Health savings account (HSA) 
• Wellness benefits
• Disability insurance 
• Life insurance 
• 401(k) contributions 
• Court-ordered garnishments, including child support, alimony, back taxes, and overdue loans 
• Commuter benefits

Note: Our paycheck calculator only accounts for federal and state deductions. Pre-tax deductions do not factor into our paycheck estimates. If you have questions about these deductions, talk to an accountant or payroll specialist. 

Frequently asked questions

What are payroll taxes?

Payroll taxes are taxes levied on employers and employees to fund various state and federal programs, including Social Security, Medicare, unemployment benefits, education, defense, construction, and infrastructure maintenance such as roads, parks, and first responder services. Employers must deduct employee contributions from their paychecks and send tax funds to the proper authorities.

How do I calculate taxes from my paycheck in North Dakota? 

Follow the steps in Calculating Paycheck in North Dakota to make sure your calculation reflects all the relevant factors, including standard annual deductions by marital status and the current North Dakota tax rate schedules, which are both subject to change from year to year. (Also, if you have a new pay rate, you can use this tool as a take-home pay calculator to estimate how much money you’ll actually be depositing each pay period.)

How can QuickBooks make North Dakota payroll easier?

QuickBooks has multiple features to make North Dakota payroll easier:

• Automation reduces tedious manual entries and frees up your time.
• QuickBooks calculates, files, and pays your payroll taxes for you—100% accurate tax calculations guaranteed.
• With tax penalty protection, you’re covered up to $25,000 if you receive a penalty for any reason.
• Your team can get paid fast with same-day direct deposit while you hold onto your cash longer.
• Time tracking can improve timesheet accuracy and streamline approvals.
• Seamless integration of processes can save you hours every week.
• With the Workforce app, your team can track their own hours and view their pay info and W-2s.

Flexible payroll plans for your business

QuickBooks offers flexible payroll plans tailored to your business needs. Whether you want to streamline payday, accurately track time, manage HR tasks, or provide benefits to your team, there's a payroll solution for your North Dakota business. 

Existing QuickBooks users can easily add payroll functionalities and leverage the QuickBooks Workforce app for enhanced employee management. Plus, with seamless time tracking and invoicing features, QuickBooks empowers you to stay organized and efficient. Explore QuickBooks payroll today.