North Dakota 1099 taxes: a 2026 guide for the self-employed
Keeper StaffKeeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.
Krislyn ChanKrislyn is Chief Growth Officer at Keeper. At Keeper, she strives to make expert-level tax strategies that used to require a traditional CPA accessible to all. Prior to Keeper, she was at Curology, where she helped bring custom, prescription-grade skincare out of the dermatologist's office to millions of faces.
Key takeaways
- 1099 income in North Dakota is subject to three taxes: 15.3% federal self-employment tax, 10% to 37% federal income tax, and 0% to 2.5% North Dakota income tax.
- Set aside 20–25% of your profit in a high-yield savings account, so the money earns interest until your tax payments are due. For a single filer with no other income, total tax runs from 18.6% of profit at $40,000 to 27.6% at $200,000.
- Most self-employed people owe little or no North Dakota tax. The first $49,575 of taxable income is taxed at 0%, so a single filer pays no North Dakota income tax until profit tops about $84,000.
- The federal QBI deduction carries over. North Dakota starts with your federal taxable income, so every federal deduction you take also lowers your North Dakota tax.
- North Dakota estimated payments start at $1,000. You make quarterly estimated tax payments only if you owed $1,000 or more last year and expect to again, due April 15, June 15, and September 15, 2026, and January 15, 2027.
How much tax do 1099 workers pay in North Dakota?
These tables show estimated 2026 tax on self-employment profit, the amount left after business expenses. They assume this is your only income, you take the standard deduction, and you have no kids or tax credits.
Single filer, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | North Dakota income tax |
|---|---|---|---|---|---|
| $40,000 | $7,427 | 18.6% | $5,652 | $1,775 | $0 |
| $60,000 | $12,037 | 20.1% | $8,478 | $3,559 | $0 |
| $80,000 | $16,647 | 20.8% | $11,304 | $5,344 | $0 |
| $100,000 | $22,596 | 22.6% | $14,130 | $8,235 | $232 |
| $150,000 | $38,564 | 25.7% | $21,194 | $16,413 | $957 |
| $200,000 | $55,113 | 27.6% | $28,234 | $25,196 | $1,682 |
Married filing jointly, one self-employed spouse, 2026
| 1099 profit | Total tax | % of profit | Self-employment tax | Federal income tax | North Dakota income tax |
|---|---|---|---|---|---|
| $40,000 | $6,050 | 15.1% | $5,652 | $398 | $0 |
| $60,000 | $10,363 | 17.3% | $8,478 | $1,885 | $0 |
| $80,000 | $14,854 | 18.6% | $11,304 | $3,550 | $0 |
| $100,000 | $19,464 | 19.5% | $14,130 | $5,335 | $0 |
| $150,000 | $31,048 | 20.7% | $21,194 | $9,795 | $58 |
| $200,000 | $45,489 | 22.7% | $28,234 | $16,472 | $783 |
How North Dakota taxes 1099 income
If you’re a freelancer, independent contractor, gig worker, or solo business owner in North Dakota, your net profit (1099 income minus business expenses) is taxed three ways:
- Federal self-employment tax: 15.3% on most of your profit (92.35% of it). That’s 12.4% for Social Security, on earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap. It replaces the payroll taxes an employer would split with you. Estimate it with the self-employment tax calculator.
- Federal income tax: 10% to 37% on what’s left after three deductions: the $16,100 standard deduction ($32,200 married filing jointly), half of your self-employment tax, and the 20% QBI deduction.
- North Dakota income tax: 0% to 2.5% on the same income the IRS taxes. You report it on Form ND-1.
What’s different about North Dakota
- A 0% bracket. North Dakota taxes the first $49,575 of taxable income ($82,800 married filing jointly) at 0%. After the federal deductions, a single self-employed person reaches that point at about $84,000 of profit.
- Low rates above it. Taxable income above the 0% bracket is taxed at 1.95%, and only income over $250,400 ($304,850 married) at 2.5%. At $100,000 of profit, a single filer owes about $232 in North Dakota income tax.
- Every federal deduction carries over. Because North Dakota starts with your federal taxable income, the federal standard deduction, half of your self-employment tax, and the 20% QBI deduction all lower your North Dakota tax.
A self-employed person in North Dakota at $80,000 pays $16,647, with no North Dakota income tax. That is about $2,613 less than in California and the same as in Texas, which has no income tax.
North Dakota income tax rates for 2026
Married couples filing jointly use wider income ranges than single filers.
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | $0 – $49,575 | $0 – $82,800 |
| 1.95% | $49,575 – $250,400 | $82,800 – $304,850 |
| 2.5% | Over $250,400 | Over $304,850 |
Example: North Dakota tax on $80,000 of 1099 income
Here’s the math for a single self-employed person in North Dakota with $80,000 of profit and no other income.
| Step | Amount |
|---|---|
| Self-employment tax: $80,000 × 92.35% × 15.3% | $11,304 |
| $80,000 minus half of self-employment tax | $74,348 |
| Income the IRS taxes: $74,348 minus the $16,100 standard deduction and $11,650 QBI deduction | $46,599 |
| Federal income tax | $5,344 |
| North Dakota income tax: $46,599 is inside the 0% bracket | $0 |
| Total 2026 tax | $16,647 (20.8%) |
Self-employment tax is about two-thirds of the bill. Every dollar you write off as a business expense lowers all three taxes, since your self-employment tax, federal income tax, and North Dakota income tax are all based on your profit after expenses.
What tax write-offs can I claim?
How to lower your North Dakota 1099 tax bill
At $80,000 of profit, every $1,000 of business expenses you deduct cuts about $231 from your total tax. Common write-offs for self-employed people in North Dakota include:
- Your phone and internet, for the share you use for work
- Car expenses, using a set rate per mile or your actual costs (compare the two)
- A home office, if you use part of your home regularly and only for work (estimate yours)
- Software, equipment, and supplies you buy for your business
- Health insurance premiums you pay as a self-employed person
- Retirement contributions to a SEP-IRA or Solo 401(k)
Most of these are small purchases spread across a year of bank and card statements, which is where they get missed. See the full list of tax write-offs for self-employed people.
Track and claim every eligible deduction with Keeper
Keeper scans your accounts for write-offs and files your return — with tax pros reviewing every one.
Try it freeNorth Dakota estimated tax payments
You owe North Dakota estimated payments for 2026 only if all of these apply:
- You’re required to make federal estimated payments for 2026.
- Your North Dakota tax for 2025 was $1,000 or more.
- You expect to owe $1,000 or more in North Dakota tax for 2026 that isn’t covered by withholding.
If you do, pay the Office of State Tax Commissioner online or with Form ND-1ES. Payments are due on the same dates as your federal ones, and each is a quarter of your North Dakota tax:
| Payment | Share of your North Dakota tax | Due date |
|---|---|---|
| 1st | 25% | April 15, 2026 |
| 2nd | 25% | June 15, 2026 |
| 3rd | 25% | September 15, 2026 |
| 4th | 25% | January 15, 2027 |
- Federal payments are separate: you pay the IRS on the same four dates with Form 1040-ES.
- To avoid a penalty for paying too little, pay at least 90% of this year’s North Dakota tax or 100% of last year’s in on-time payments. North Dakota has no higher bar for high earners.
Get your payment amounts with the North Dakota quarterly tax calculator.
Do self-employed people in North Dakota charge sales tax?
Usually not. North Dakota’s 5% sales tax, plus local tax in most cities, applies to goods and a few services, but most professional services aren’t taxed. If you sell physical products, you need a North Dakota sales tax permit.
Should you form an LLC or S corp in North Dakota?
You don’t need one to work as an independent contractor. If you work for yourself without forming a business, you report 1099 income on Schedule C, part of your regular tax return, and pay the taxes above.
- LLCs cost $135 to form and $50 a year for the annual report, due by November 15.
- S corps can make sense once your profit is around $80,000, when the self-employment tax savings get significant. You pay yourself a reasonable salary and take the rest as profit payouts (distributions) that aren’t subject to self-employment tax.
Run the numbers for your income to see what you’d save.
6 sources
- 2026 Form ND-1ES: estimated income tax (North Dakota Office of State Tax Commissioner) · tax.nd.gov
- Individual income tax (North Dakota Office of State Tax Commissioner) · tax.nd.gov
- New businesses and contractors: sales tax · tax.nd.gov
- Limited liability company (North Dakota Secretary of State) · sos.nd.gov
- IRS releases tax inflation adjustments for tax year 2026 · irs.gov
- Contribution and benefit base · ssa.gov
This article is for informational purposes only and isn’t tax, legal, or financial advice. Tax rules change and depend on your situation, so talk to a tax professional about yours.
