Minnesota vs North Dakota:
Take-Home Pay Comparison
Side-by-side tax comparison between Minnesota (9.85% top rate, graduated) and North Dakota (2.5% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Tax Structure: Minnesota vs North Dakota
Minnesota uses a graduated income tax (5.35-9.85%) while North Dakota has a graduated system (0-1.95-2.5%). On a $100K salary, Minnesota takes $6,402 in state and local taxes compared to North Dakota’s $1,625 \u2014 a difference of $4,777.
Both states use graduated brackets, but Minnesota’s top rate of 9.85% is higher than North Dakota’s 2.5%.
Take-Home at Every Salary Level
North Dakota wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Minnesota | North Dakota | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,759 | $33,670 | +$1,911 | North Dakota |
| $50K | $39,154 | $41,543 | +$2,389 | North Dakota |
| $60K | $46,549 | $49,415 | +$2,867 | North Dakota |
| $75K | $56,736 | $60,319 | +$3,583 | North Dakota |
| $100K | $72,723 | $77,500 | +$4,778 | North Dakota |
| $120K | $85,512 | $91,245 | +$5,733 | North Dakota |
| $150K | $104,147 | $111,314 | +$7,166 | North Dakota |
| $200K | $136,082 | $145,637 | +$9,555 | North Dakota |
| $250K | $167,258 | $179,202 | +$11,944 | North Dakota |
| $300K | $196,121 | $210,454 | +$14,333 | North Dakota |
Cost of Living: Minnesota (99) vs North Dakota (92)
Take-home pay only tells part of the story. Minnesota has a cost of living index of 99 while North Dakota is at 92 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $73,457 in Minnesota vs $84,239 in North Dakota. The take-home winner also wins on purchasing power.
Married Filing Jointly: How It Changes the Comparison
For a single earner at $100K filing jointly, take-home becomes $79,293 in Minnesota and $83,335 in North Dakota \u2014 a difference of $4,043. The gap narrows under married filing, as the wider brackets reduce the tax bite in both states.
Should You Move from Minnesota to North Dakota?
On paper, moving from Minnesota to North Dakota would save $4,778/year on a $100K salary, or $23,888 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $4,778/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.