Self-employed taxes and LLC costs in North Dakota, 2026
North Dakota pairs a low LLC upkeep with an income tax so light that many freelancers owe little or nothing to the state.
Total tax on this income in 2026
$17,800
Put aside 21% of each payment · $4,450 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| North Dakota income tax | $0 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 20.9% |
With an S corp election and a $34,000 salary, about $3,747 less tax (check it).
Computed by Radif Partners from IRS and North Dakota agency documents read on October 15, 2026 · How we calculate
North Dakota charges $135 to register an LLC and $50 for each annual report, due by November 15, which brings the state cost to $385 over five years with no franchise tax and no publication. The income tax starts from federal taxable income and has a zero-rate first bracket, so a large part of a typical freelance profit is taxed at nothing. The 2026 brackets had not been published on the Office of State Tax Commissioner's page today, which still shows 2025, so this page states no North Dakota tax amount and the calculator leaves the state tax out. The federal part on $75,000 of profit is $15,495 for a single filer, $3,874 a quarter, and $28,462 at $120,000. North Dakota follows the federal S election; at $120,000 of profit and a $50,000 salary, the election saves about $5,306 a year federally after the state fees and $2,000 of payroll costs.
North Dakota at a glance, 2026
| LLC filing fee | $135 |
| Annual Report | $50 a year |
| Income tax | see the state revenue department |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $15,495 federal; North Dakota tax not verified |
The annual report deadline is the first thing a new North Dakota LLC owner tends to miss, because it does not follow the usual spring calendar. A regular LLC or PLLC files its report by November 15 each year, while a farm or ranch LLC files by April 15 (ND Secretary of State, LLC). The fee is $50, after $135 to register the company. North Dakota requires no newspaper notice and charges no franchise or minimum tax on LLCs.
State fees over the years
North Dakota LLC, 5 years
$385
| Formation | $135 |
| Per year after | $50 |
A state tax that starts at zero
North Dakota computes its income tax on federal taxable income, so the federal standard deduction and the QBI deduction already reduce the base, and then applies a first bracket taxed at 0%. Above it come two low rates. The structure means many single freelancers with moderate profit owe little to the state, and couples even less because their zero bracket is wider. The brackets are indexed every year, though, and the Tax Commissioner's page read today still showed the 2025 figures (ND Tax Commissioner, individual income tax). Until the 2026 schedule appears there, this page quotes none of the rates and the calculator shows federal tax only. The state income tax comparison will place North Dakota among the others once it is confirmed.
Estimated payments and the federal link
North Dakota ties its estimate rule to the federal one: you make state estimated payments if you are required to pay federal estimated tax and expect your North Dakota net tax to exceed $1,000 (ND Tax Commissioner). With a zero bracket at the bottom, a single owner can be well into federal estimates while owing the state far less than that, in which case no state installment is due. The page read today did not state the due dates; the federal ones are in the estimated tax due dates guide.
S corporation owners in North Dakota
The state follows the federal S election and taxes the income on the owner's return. Whether North Dakota adds an entity-level tax on S corporations, or offers an elective pass-through entity tax, could not be verified today, and the calculator adds none. Running payroll for yourself also means registering with Job Service North Dakota for unemployment insurance; its 2026 wage base and new-employer rate were not found on the pages read. With a federal saving of about $5,306 at $120,000 of profit and the light state tax, the payroll and filing costs carry more weight in the decision than any North Dakota rule. The S corp savings calculator lets you replace the $2,000 placeholder with your own quotes. Neighboring Minnesota works very differently.