## Property tax in North Dakota
Property taxes fund local government — schools, fire, police, libraries, parks. North Dakota's effective rate (~~0.98%) varies dramatically by county and city.
### North Dakota property tax framework
Recent reforms reducing property taxes.
## How property tax is calculated
Standard formula:
**Property tax = Assessed value × Tax rate (millage / mill levy)**
**Assessed value:**
- Some states use 100% of market value
- Others use a fraction (e.g., Alabama 10% of market value, California's restricted assessed value)
- Many states reassess every 1-6 years
**Millage / mill rate:**
- Mil = 1/1000 of a dollar
- Combined rate from county + city + school district + special districts
- Often shown as "per $1,000 of assessed value" or as a percentage
## Common tax classifications
Most states classify property differently for tax purposes:
- **Residential** (often lowest rate)
- **Commercial / industrial** (higher rate)
- **Agricultural** (current-use valuation)
- **Vacant land**
- **Personal property** (vehicles, business equipment in some states)
- **Centrally-assessed** (utilities, railroads)
## Common exemptions and caps
**Homestead exemption** — most states give partial exemption for primary residence. Amount varies hugely:
- Florida: $50K + Save Our Homes 3% cap
- Texas: $100K (post-2023)
- DC: ~$84K
- Many states: $20K-$50K
**Senior / disabled / veteran exemptions** — most states have additional exemptions for:
- Seniors (65+)
- Disabled persons
- Veterans (especially disabled veterans)
- Surviving spouses of military members
**Annual assessment / tax caps:**
- California: 2% per year (Prop 13)
- Florida: 3% homestead increase cap
- Maryland: 10% residential increase cap
- Texas: 10% increase cap on homestead
- Oklahoma: 3% increase cap
- Various states have similar caps
**Other exemptions:**
- Religious / charitable property (federal + state)
- Educational institutions
- Government property
- Historic preservation
- Conservation easements
- Affordable housing
## Special programs
**Senior freeze / senior deferral programs.** Many states freeze taxes for seniors over a certain age + income threshold, or allow tax deferral until sale.
**Circuit-breaker programs.** Income-based tax credits when property taxes exceed % of income.
**Current-use valuation.** Agricultural / forestry / open-space property valued at use rather than market.
**Property tax abatements.** For new construction, redevelopment, business attraction.
## When taxes are due
Varies by state and locality:
- Some annual (lump sum)
- Some semi-annual (March / September)
- Some quarterly
- Most have late penalties of 5-10% + interest
- Long-overdue accounts go to tax sale
## Tax sales / lien sales
When property taxes go unpaid:
**Tax lien sale:** State / county sells lien to investor; owner has redemption period to pay (with interest) or lose property.
**Tax deed sale:** State / county forecloses and sells the property itself.
Procedures vary widely by state. Tax sales create both opportunity (investor income) and risk (property loss for delinquent owners).
## Appeals (briefly)
If you think your assessment is too high:
1. **Informal review** with assessor first
2. **Formal appeal** to county / state board
3. **Court appeal** if board denies
Strict deadlines apply (typically 30-90 days from notice). See our state-specific property-tax-appeals guide for details.
## Federal tax interaction
**State and Local Tax (SALT) deduction** under federal income tax:
- Capped at $10,000 since 2018 Tax Cuts and Jobs Act
- Allows deduction of property taxes + state income / sales taxes (combined)
- TCJA cap may sunset in 2025 (legislation pending)
**Mortgage interest deduction** also affected by limits.
## What you should do
If your North Dakota property tax bill seems too high: review your assessment carefully. File an appeal if assessment exceeds market value. Apply for ALL exemptions you qualify for. For complex cases (commercial property, multiple exemptions, large assessment errors), hire a property-tax consultant or attorney. Most North Dakota property-tax consultants charge contingency fees (25-40% of first year's tax savings).
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*This guide is general information about North Dakota law as of early 2026 and is not legal or tax advice. Property tax law is heavily local and changes annually. Talk to a CPA or property-tax attorney about your specific situation.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.