# TAXES 20-24, North Dakota State Income Tax Withholding

Published: September 1, 2020

Effective: Pay Period 16, 2020

## Summary

The income tax withholding formula for the State of North Dakota includes the following changes:

- The annual amount per exemption for employees who have not submitted a 2020 or later Form W-4 will increase from $4,200 to $4,300.
- The Single and Married (including Married Filing Jointly) income tax withholding tables will change.
- A Head of Household income tax withholdings table will be added for employees who have submitted a 2020 or later Form W-4.

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: |
S/M/H, Number of Allowances, prior to 2020 Federal Form W-4. |

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 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 new 2020 Federal Form W-4, will default to Single and zero (00) allowances. |

### Withholding Formula (Effective Pay Period 16, 2020)

- 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 Allowances by $4,300

- If the employee is Single and Married Filing Separately, or the employee is Head of Household and has claimed exemptions, apply the taxable income computed in step 5 to the following tables to determine the annual North Dakota income tax withholding:
**Single or Married Filing Separately Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $6,200

$0.00

Over $6,200 but not over $46,325

$0.00 plus 1.10% of excess over $6,200

Over $46,325 but not over $103,350

$441.38 plus 2.04% of excess over $46,325

Over $103,350 but not over $208,850

$1,604.69 plus 2.27% of excess over $103,350

Over $208,850 but not over $446,800

$3,999.54 plus 2.64% of excess over $208,850

Over $446,800

$10,281.42 plus 2.90% of excess over $446,800

If the employee is Married and Married Filing Jointly, apply the taxable income computed in step 5 to the following tables to determine the annual North Dakota income tax withholding:

**Married or Married Filing Jointly Tax Withholding Table**If the Amount of Taxable Income Is:

The Amount of Tax Withholding Should Be:

Over $0 but not over $12,400

$0.00

Over $12,400 but not over $45,925

$0.00 plus 1.10% of excess over $12,400

Over $45,925 but not over $93,375

$368.78 plus 2.04% of excess over $45,925

Over $93,375 but not over $135,750

$1,336.76 plus 2.27% of excess over $93,375

Over $135,750 but not over $232,700

$2,298.67 plus 2.64% of excess over $135,750

Over $232,700

$4,858.15 plus 2.90% of excess over $232,700

If the employee is Head of Household and has zero exemptions, apply the following tax rates to annualized taxable wages to determine the annual North Dakota tax amount:

**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 $9,325

$0.00

Over $9,325 but not over $63,075

$0.00 plus 1.10% of excess over $9,325

Over $63,075 but not over $148,125

$591.25 plus 2.04% of excess over $63,075

Over $148,125 but not over $234,025

$2,326.27 plus 2.27% of excess over $148,125

Over $234,025 but not over $449,925

$4,276.20 plus 2.64% of excess over $234,025

Over $449,925

$9,975.96 plus 2.90% of excess over $449,925

- Divide the annual North Dakota income tax withholding calculated in step 6 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

page from the drop-down menu on the National Finance Center (NFC) Home page. Select the tab and select from the 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

or via the customer service portal.