North Dakota State Income Tax Withholding
Reference Number: NFC-23-1690298209
Published: July 27, 2023
Effective: Pay Period 13, 2023
Summary
This bulletin supersedes Reference Number: NFC-23-1683116852, North Dakota State Income Tax Withholding, dated April 27, 2023, to include the following changes:
- The income tax tables have changed.
- Different tax tables apply based on whether the Federal W-4 form is dated prior to 2020 or dated 2020 or later.
All other information remains the same.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
|
State Abbreviation: |
ND |
|
State Tax Withholding State Code: |
38 |
|
Acceptable Exemption Form: |
W-4 (see the Additional Information section) |
|
Basis for Withholding: |
Federal Exemptions |
|
Acceptable Exemption Data: |
Prior to 2020 Federal Form W-4: S/M/H, Number of Allowances. |
|
TSP Deferred: |
Yes |
|
Special Coding: |
None |
|
Additional Information: |
A State tax certificate is not required since Federal exemptions are used in the computation of the State formula. Employees who have not previously submitted a 2020 or newer Federal Form W-4, but have submitted a prior to 2020 Federal Form W-4, will default to the prior to 2020 Federal Form W-4 submission. Employees who have not previously submitted a prior to 2020 W-4 and have not submitted a 2020 or newer Federal Form W-4, will default to Single and zero (00) allowances. |
Withholding Formula (Effective Pay Period 13, 2023)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income:
Multiply the number of Exemptions by $4,300
- If the employee has submitted a Federal W-4 form dated prior to 2020, apply the taxable income computed in step 5 to the following tables based on marital status to determine the annual North Dakota income tax withholding:
Single (including Head of Household) Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $51,650 |
$0.00 |
|
Over $51,650 but not over $277,625 |
$0.00 plus 1.95% of excess over $51,650 |
|
Over $277,625 |
$4,406.51 plus 2.50% of excess over $277,625 |
Married Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $51,225 |
$0.00 |
|
Over $51,225 but not over $188,775 |
$0.00 plus 1.95% of excess over $51,225 |
|
Over $188,775 |
$2,682.23 plus 2.50% of excess over $188,775 |
- If the employee has submitted a Federal W-4 form dated 2020 or later, apply the taxable income computed in step 5 to the following tables based on marital staus to determine the annual North Dakota income tax withholding:
Single (Including Married Filing Separate) Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $51,650 |
$0.00 |
|
Over $51,650 but not over $232,900 |
$0.00 plus 1.95% of excess over $51,650 |
|
Over $232,900 |
$3,534.38 plus 2.50% of excess over $232,900 |
Married Filing Jointly (Including Married) Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $51,225 |
$0.00 |
|
Over $51,225 but not over $259,525 |
$0.00 plus 1.95% of excess over $51,225 |
|
Over $259,525 |
$4,061.85 plus 2.50% of excess over $259,525 |
Head of Household Tax Withholding Table
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
|
Over $0 but not over $70,350 |
$0.00 |
|
Over $70,350 but not over $260,950 |
$0.00 plus 1.95% of excess over $70,350 |
|
Over $260,950 |
$3,716.70 plus 2.50% of excess over $260,950 |
- Divide the annual North Dakota income tax withholding calculated in step 6 or 7 by the number of pay dates in the tax year and round to the nearest dollar to obtain the biweekly North Dakota income tax withholding.
- Add additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for this pay period.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.