North Dakota tips calculator: deductible, often at 0%
North Dakota starts from federal taxable income, so the tips deduction flows through — but its first bracket is taxed at 0%, so many tipped workers save nothing extra in North Dakota because they owed no state tax to begin with.
The 0% bracket
Under N.D.C.C. § 57-38-30.3 a single filer pays 0% on taxable income up to the first threshold ($44,725 in the statute’s base schedule), 1.95% above it and 2.5% at the top; joint filers’ 0% band runs to $74,750. The Tax Commissioner indexes those thresholds each year, so your ND-1 may show slightly higher ones. The tips deduction only saves North Dakota tax for income above the 0% band.
North Dakota figures
| Cash wage / minimum | $4.86 / $7.25 |
|---|---|
| In force | July 1, 2026 |
| Next change | none scheduled |
| Tipped threshold | More than $30 a month in tips |
| Tips on the 2025 return | state allows the federal tips amount. Form ND-1 starts from federal taxable income, which already excludes deducted tips, with no add-back. Source: North Dakota Office of State Tax Commissioner / Legislative Assembly |
| Tips on the 2026 return | state allows the federal tips amount. Unchanged structure. Source: North Dakota Office of State Tax Commissioner / Legislative Assembly |
A 33% tip credit
North Dakota caps the tip credit at 33% of the $7.25 minimum ($2.39), so the cash wage is $4.86 for employees receiving more than $30 a month in tips.
A Fargo couple, both in restaurants
Together they earn $30,000 of tips, so the joint return deducts $25,000 and saves $3,000 federally. Their income reaches North Dakota’s 1.95% band, so the state saves about $157 more. In a 30-hour week at $4.86 with $90 of tips, pay just clears $218; make-up owed: $0.
Check a North Dakota workweek
Where these figures come from
- North Dakota Office of State Tax Commissioner · North Dakota Department of Labor and Human Rights
- 2025 Form ND-1 and N.D.C.C. § 57-38-30.3 (2025-12)
- Minimum Wages for Tipped Employees (table by state) (2026-07-01)
Federal rules: how the deduction works. Nearby: Minnesota, South Dakota, Montana.
Figures verified against primary sources on