North Dakota Capital Gains Tax: 2026 Rules and Calculator

Short answer: North Dakota subtracts 40% of net long term capital gain and taxes the rest at 0%, 1.95% or 2.5%; for married couples filing jointly 0% applies up to $74,750 of North Dakota taxable income (North Dakota Century Code 57-38-30.3). On top of that comes federal capital gains tax (0%, 15% or 20% for 2026 under IRS Rev. Proc. 2025-32, and up to 25% on building depreciation) and the 3.8% net investment income tax above $250,000 of income for married couples or $200,000 single (IRC 1411).

North Dakota capital gains tax calculator

Enter your sale: rental property, your home, land, a business, stock or collectibles. You get the 2026 tax in North Dakota (federal, the 3.8% tax and North Dakota tax) and the same sale spread over the years the buyer pays you. It runs in your browser on the same engine as our capital gains tax calculator.

Example loaded. Change any number to run yours.

What you are sellingRental or investment real estateYour home (Section 121 exclusion)LandA business you work inPublicly traded stock or fundsCollectibles (art, coins, gold, cars)

Sale price

Selling costs (commission, title, legal)

Your adjusted basis

What you paid plus improvements, minus depreciation or depletion taken. Inherited: the value at the date of death.

How long you have held itMore than 1 year1 year or less

State you will be taxed inAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Filing statusMarried filing jointlySingleHead of household

Other income this year (before deductions)

Years the buyer pays you over (1 = all now)

Expected sale date

North Dakota subtracts 40% of net long term capital gain and taxes the rest at 0%, 1.95% or 2.5%; for married couples filing jointly 0% applies up to $74,750 of North Dakota taxable income (North Dakota Century Code 57-38-30.3). The calculator applies 2.5% to the 60% of the gain that is taxed. Source: North Dakota Century Code chapter 57-38 (57-38-30.3, rates and the 40% subtraction), checked October 13, 2026. Federal: 2026 brackets per IRS Rev. Proc. 2025-32 (0%, 15% and 20% on long-term gain; 20% above $613,700 of taxable income married filing jointly); 25% cap on building depreciation, IRC 1(h)(1)(E); 28% cap on collectibles, IRC 1(h)(4); 3.8% net investment income tax above $250,000 married or $200,000 single, IRC 1411.

Estimated tax on this sale (2026), example in North Dakota

$797,105

You keep $2,962,895 after selling costs and tax. The tax is 25.2% of your gain.

Your gain

• Sale price less selling costs$3,760,000
• Less your basis$600,000
• Your taxable gain$3,160,000
• Long-term gain at 0%, 15% or 20%$3,160,000

The tax, line by line

• Federal income tax (incl. $24,460 AMT)$632,665
• Net investment income tax (3.8%)$117,040
• North Dakota tax$47,400
• Total tax$797,105
• You keep$2,962,895

All in one year vs spread over 10 years: tax of $797,105 against $611,080 when the buyer pays you over 10 years. You keep $186,025 more.

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These are estimates. Have a qualified tax professional run your real numbers in a 15-minute scope call.

Why now: the closing date and how the buyer pays you are set before closing, and they decide how much North Dakota and federal tax this sale costs.

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This is an estimate. Getting it right down to the tee takes your actual tax forms (returns, K-1s, depreciation schedules), a consult and a paid analysis. The first 15-minute scope call is free.

How North Dakota taxes capital gains in 2026

North Dakota subtracts 40% of net long term capital gain and taxes the rest at 0%, 1.95% or 2.5%; for married couples filing jointly 0% applies up to $74,750 of North Dakota taxable income (North Dakota Century Code 57-38-30.3).

• The 40% subtraction applies to net long term capital gain allocated to North Dakota (57-38-30.3(2)(d)).

Selling North Dakota property while living elsewhere: North Dakota taxes a nonresident on gain from real estate and other property located in North Dakota, so selling North Dakota property from another state still means a North Dakota return.

Worked example (computed October 13, 2026)

A large farmland sale where North Dakota takes about 1.5%. A married couple filing jointly in North Dakota sells land for $4,000,000 with $240,000 of selling costs. Basis is $600,000, and other income is $170,000.

• Taxable gain: $3,160,000.
• All in one year (2026): $632,665 federal income tax, $117,040 net investment income tax and $47,400 North Dakota tax (1.5% of the gain): $797,105 in total, 25.2% of the gain.
• Spread over 10 years on a note: $611,080 of tax on the gain, so the seller keeps $186,025 more. Interest on the note is taxed separately.

What the calculator simplifies

The calculator applies 2.5% to the 60% of the gain that is taxed. It also leaves out local taxes unless named above, the alternative minimum tax effect of note interest, and equipment recapture on a business sale. Federal tables for later years carry the 2026 tables forward.

Spreading a North Dakota sale over several years

On an installment sale the gain is reported as the buyer pays you (IRC 453), so each year's slice can stay in lower federal brackets and under the 3.8% threshold. Building depreciation is reported first (Treas. Reg. 1.453-12), equipment recapture is taxed in the year of sale (IRC 453(i)), and notes over $5,000,000 owe the Section 453A interest charge. More on how it works: what a structured installment sale is.

Sources

• North Dakota Century Code chapter 57-38 (57-38-30.3, rates and the 40% subtraction)
• IRS Rev. Proc. 2025-32: 2026 federal brackets.
• IRC 1(h) and IRC 1411: capital gain rates and the 3.8% tax (as in force October 2026).

Frequently asked

What is the capital gains tax rate in North Dakota for 2026?

North Dakota subtracts 40% of net long term capital gain and taxes the rest at 0%, 1.95% or 2.5%; for married couples filing jointly 0% applies up to $74,750 of North Dakota taxable income (North Dakota Century Code 57-38-30.3). Federal capital gains tax and the 3.8% net investment income tax come on top.

How much tax on a $4,000,000 sale in North Dakota?

In the example on this page, a married couple filing jointly selling land for $4,000,000 with a $3,160,000 taxable gain owes $797,105 in 2026: $632,665 federal, $117,040 net investment income tax and $47,400 North Dakota tax. Spread over 10 years, the tax is $611,080.

Do nonresidents pay North Dakota tax when they sell property there?

North Dakota taxes a nonresident on gain from real estate and other property located in North Dakota, so selling North Dakota property from another state still means a North Dakota return.

Does North Dakota have a capital gains deduction or special rule?

The 40% subtraction applies to net long term capital gain allocated to North Dakota (57-38-30.3(2)(d))