Side-by-side tax comparison between North Dakota (2.5% top rate, graduated) and Washington (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Washington has no state income tax, while North Dakota uses a graduated system with rates of 0-1.95-2.5%. On a $100K salary, this creates a state tax difference of $1,625/year that Washington residents simply don’t pay.
North Dakota’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $3,250/year, while at $50K it’s only $813.
Washington wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | North Dakota | Washington | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,670 | $34,320 | +$650 | Washington |
| $50K | $41,543 | $42,355 | +$813 | Washington |
| $60K | $49,415 | $50,390 | +$975 | Washington |
| $75K | $60,319 | $61,538 | +$1,219 | Washington |
| $100K | $77,500 | $79,125 | +$1,625 | Washington |
| $120K | $91,245 | $93,195 | +$1,950 | Washington |
| $150K | $111,314 | $113,751 | +$2,438 | Washington |
| $200K | $145,637 | $148,887 | +$3,250 | Washington |
| $250K | $179,202 | $183,264 | +$4,063 | Washington |
| $300K | $210,454 | $215,329 | +$4,875 | Washington |
Take-home pay only tells part of the story. North Dakota has a cost of living index of 92 while Washington is at 110 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in North Dakota has purchasing power of $84,239 compared to $71,932 in Washington. Interestingly, North Dakota wins on purchasing power even though Washington has higher raw take-home pay. The cost of living difference more than offsets the tax advantage.
For a single earner at $100K filing jointly, take-home becomes $83,085 in North Dakota and $84,710 in Washington \u2014 a difference of $1,625. The gap remains similar regardless of filing status.
On paper, moving from North Dakota to Washington would save $1,625/year on a $100K salary, or $8,125 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,625/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.