Bill > HB1388

This bill updates North Dakota's income tax rate schedules and eliminates the marriage penalty credit by modifying two sections of the state tax code. The bill adjusts income tax brackets for different filing statuses (single, married filing jointly, head of household, and estates/trusts) by increasing the income thresholds for each tax rate tier, effectively indexing the rates to account for inflation. Specifically, the bill raises the income ranges for each tax bracket, which means taxpayers can earn slightly more before moving into a higher tax rate. The marriage penalty credit (a previous tax provision designed to reduce the tax burden on married couples) is being completely removed from the tax code, as indicated by the repeal of section 57-38-01.28 and the deletion of the marriage penalty credit from the list of available tax credits. The tax rate changes and credit elimination will take effect for taxable years beginning after December 31, 2024, giving taxpayers and tax authorities time to prepare for the new tax structure.

Budget and Finance

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1388.html