Side-by-side tax comparison between Minnesota (9.85% top rate, graduated) and North Dakota (1.95% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Minnesota uses a graduated income tax (5.35-9.85%) while North Dakota has a graduated system (0-1.95%). On a $100K salary, Minnesota takes $6,402 in state and local taxes compared to North Dakota’s $1,268 \u2014 a difference of $5,135.
Both states use graduated brackets, but Minnesota’s top rate of 9.85% is higher than North Dakota’s 1.95%.
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 | $33,813 | +$2,054 | North Dakota |
| $50K | $39,154 | $41,721 | +$2,568 | North Dakota |
| $60K | $46,549 | $49,630 | +$3,081 | North Dakota |
| $75K | $56,736 | $60,587 | +$3,851 | North Dakota |
| $100K | $72,723 | $77,858 | +$5,135 | North Dakota |
| $120K | $85,512 | $91,674 | +$6,162 | North Dakota |
| $150K | $104,147 | $111,850 | +$7,703 | North Dakota |
| $200K | $136,082 | $146,352 | +$10,270 | North Dakota |
| $250K | $167,258 | $180,095 | +$12,838 | North Dakota |
| $300K | $196,121 | $211,526 | +$15,405 | North Dakota |
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 $84,628 in North Dakota. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $78,308 in Minnesota and $83,443 in North Dakota \u2014 a difference of $5,135. The gap remains similar regardless of filing status.
On paper, moving from Minnesota to North Dakota would save $5,135/year on a $100K salary, or $25,675 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
With an annual savings of $5,135, the tax difference alone is significant enough to justify a move for many people — especially if career opportunities are comparable. At higher salaries, the savings grow even larger: a $200K earner would save $10,270/year.