United States
Cost of living in North Dakota
Cost of living in North Dakota comes in at an RPP of 89.0, placing prices 11 percent below the US average and ranking the state 44th nationally. What makes North Dakota stand out among cheap states is its income tax structure: single filers pay nothing on the first $48,475 of income, then 1.95 percent up to $244,825, and just 2.5 percent above that. For a worker earning the median US household income, the effective state income tax rate is very close to zero. Sales tax is 5 percent at the state level. That combination, a low price level plus a near-zero income tax on moderate earnings, is unusual even among the cheapest states. The energy sector drives wages in parts of the state, meaning some residents enjoy both above-average pay and well-below-average prices.
Price level
89
US = 100
National rank
44th
of 51, dearest first
Income tax
2.5%
top rate
Sales tax
5%
state base rate
What your salary is worth in North Dakota
Because prices here sit at 89 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in North Dakota to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $53,400 | $89,000 |
| California (dearest) | $48,238 | $80,397 |
| Arkansas (cheapest) | $61,450 | $102,417 |
Compare North Dakota with anywhere in the US
To live the same in California you need
$87,067
to match $70,000 in North Dakota
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
North Dakota in context
North Dakota's price advantage is most pronounced in housing, where costs in Bismarck and Fargo are well below national medians for comparably sized cities. Energy-producing regions such as the Williston area have seen elevated costs and wages during boom cycles, creating pockets of higher prices that differ substantially from the broader state average. The income tax exemption on the first $48,475 means that most working-class and middle-income households face negligible state income tax, which is a practical benefit not immediately obvious from the headline rate. Sales tax of 5 percent is among the lower rates in this group of states, adding to the favorable tax picture for everyday purchases. The state suits workers in energy, agriculture, or remote roles who want a low total cost base and are comfortable with a less urban environment.
The closest state above North Dakota on price is West Virginia at 89.5. Just below sits Alabama at 88.8.
Frequently asked questions
Is North Dakota expensive to live in?
North Dakota sits at a price level of 89 where the US average is 100, so a typical basket of goods and services costs about 11% less than the national norm. That ranks it 44th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in North Dakota?
To match the buying power of $60,000 earned at the US average, you would need about $53,400 in North Dakota. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does North Dakota charge?
North Dakota applies a top state income-tax rate of 2.5% and a base state sales tax of 5%. 2025 single-filer brackets: 0% up to $48,475, 1.95% to $244,825, 2.50% above. Standard deduction $15,000 (single; conforms to federal/TCJA base). State sales tax 5.00%. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.