Quick North Dakota Tax Stats
| Tax Type | Rate / Info |
|---|---|
| Income Tax | Progressive; top rate 2.50% |
| Sales Tax | 5% statewide base; ~6.5%–8% combined in many cities |
| Jock Tax | North Dakota taxes income earned from work performed in the state |
| Cost of Living (Range) | $70,000 – $145,000+ annual (Fargo / Bismarck lifestyle) |
| Average Home Price | ~$300,000 – $350,000 statewide; slightly higher in Fargo |
Income Tax in North Dakota
North Dakota uses a progressive state income tax system, but at very low rates. Top rate: 2.50%
Key structure:
- Multiple brackets (scale)
- Top rate reached at relatively modest income levels
- Residents taxed on worldwide income
For professional athletes:
- One of the lowest top income tax rates in the U.S.
- Significantly lower than Colorado (4.40%), Utah (4.55%), and Idaho (5.8%)
- Far below California (13.3%) or Oregon (9.9%)
Example
An athlete earning $25 million while domiciled in North Dakota would owe approximately $625,000 in state income tax.
Compare that to:
- California → $3+ million
- Oregon → ~$2.5 million
- Montana → ~$1.47 million
Over a 4-year contract, the difference versus California could exceed $10+ million in retained net income.
North Dakota sits in the ultra-low income tax tier.
Sales Tax
North Dakota’s statewide base sales tax is 5%.
Local governments may add sales taxes, bringing combined rates to:
- ~7.5% in Fargo
- ~6.5%–7% in Bismarck
For high-income athletes:
- Moderate consumption tax exposure
- Lower than many coastal metro areas
Buying a $200,000 vehicle in Fargo, North Dakota at ~7.5% combined rate would trigger ~$15,000 in sales tax.
This also means that the liability purchase depreciates at a rate that starts 7.5% less than states like Oregon which does not levy a sales tax.
States with high sales tax can affect assets as well, as appreciation rates will also start 7.5% lower upon purchase.
Consumption taxes are meaningful but not extreme.
Jock Tax
North Dakota imposes jock taxes on all wages, bonuses, guaranteed earnings, sponsorships and any/all other pass-through gross income earned from work performed in the state.
- Visiting athletes owe North Dakota tax on duty days performed in-state.
- North Dakota residents owe up to 2.50% on worldwide income.
North Dakota does not host major NFL, NBA, MLB, or NHL franchises.
As a result:
- Limited professional sports duty-day exposure
- Residency planning more relevant than in-state game allocation
Athletes domiciled in North Dakota will still owe taxes to other states for away games. Flat modeling effect at the top bracket is highly efficient compared to progressive states.
Cost of Living and Housing
North Dakota has one of the lower cost-of-living profiles in the country.
Lifestyle budgets:
- Fargo: $85k–$145k+ annually depending on property and discretionary spending
- Bismarck: generally moderate
- Rural areas: significantly lower
Housing
- Statewide median home price: ~$300k–$350k
- Fargo 3-bed/2-bath: ~$350k–$400k
- Smaller cities: often lower
Compared to most western states:
- Lower income tax
- Lower housing costs
- Moderate sales tax
North Dakota combines low income tax with relatively affordable real estate. However, they do levy a relatively high property tax in ND, so while the cost of living and property values are much less than the national average, the amenities of the state are also much slimmer than states with larger cities and in coastal regions.
Property Tax
North Dakota’s effective property tax rate is ~0.94% to 0.96% of a home’s value, which is slightly above the national average, though rates vary by municipality and school district.
Property taxes are calculated based on 50% of the assessed value, with a 9% assessment factor for residential properties.
For a relatively low populated and underdeveloped state, athletes may be able to purchase larger plots of land for less than they could buy a home in a coastal suburban neighborhood.
However, high earners will essentially be paying similar annual taxes on their homes assessed value as in Washington or Nevada, states that do not impose an income tax.
Residency Rules
Athletes establishing domicile in North Dakota must:
- Obtain North Dakota driver’s license
- Register vehicles in-state
- Register to vote
- Establish primary residence
- Demonstrate intent to remain
North Dakota taxes residents on worldwide income up to 2.50%.
Example
A professional athlete establishing North Dakota residency would owe up to 2.50% on salary and endorsement income, but still owe jock tax to other states for away games. Residency enforcement is generally straightforward compared to high-tax coastal states.
Why North Dakota Is Structurally Efficient
- Very low top income tax (2.50%)
- Moderate sales tax
- Low housing costs
- No extreme progressive brackets
- Limited pro franchise presence (low in-state jock exposure)
North Dakota sits near the top tier for income tax efficiency among states that still levy income tax.
For athletes prioritizing pure state tax minimization without moving to a zero-tax state, North Dakota presents a highly efficient option.
Want Every APSM Report In One Place?
The APSM Master Report Bundle includes all current APSM reports:
- Why $100M Pro Contract Only Nets $35-$55M
- 7 Ways Athletes Go Broke Within 5-Years
- 7 Ways Athletes Build Generational Wealth
(Will Include future additions of reports as APSM grows)
You’ll Get:
- Net worth projections, contract forecasts & tax modeling
- Wealth frameworks & risk analysis
- Lifetime value mapping
- Long-term capital preservation strategy
The most valuable way to learn the game of money through APSM.
Next State Athlete Tax Reads
- South Dakota State Athlete Taxes
- Montana State Athlete Taxes
- Minnesota State Athlete Taxes
- Wyoming State Athlete Taxes
- Colorado State Athlete Taxes
Next Reads
- Inside the Fight for UFC Contracts
- The Streaming Problem in Sports
- Why U.S. Investors are Buying European Soccer Clubs
- College Football Has Entered Its Contract Era: The Financial Fallout of the Demond Williams Jr. Case
- Phoenix Suns Minority Owner Lawsuit: Revenue Strategy, Valuation Math & Control Rights in the Modern NBA
Credits
Sources: North Dakota Office of State Tax Commissioner, 2025 State Tax Data, Zillow / Redfin Housing Data, APSM Proprietary Analysis
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.
Apostle Sports Media 