Updated October 16, 2026. Quick answer: North Dakota taxes 403(b) and 457(b) withdrawals like other income: the booklet says the state “perpetually conforms to the computation of federal taxable income”, and the retirement items it lists as exclusions are military retirement, licensed peace officer retirement, Railroad Retirement and Social Security, and it sends filers to Schedule ND-1SA for other additions and subtractions such as a lump sum distribution from federal Form 4972.
North Dakota at a glance
| Item | What the documents say |
|---|---|
| How the state treats 403(b) and 457(b) withdrawals | Taxed like other income; the documents read do not name these plans |
| Do the state’s documents name these plans? | The documents read name neither 403(b) nor 457(b) plans |
| Retirement exclusion or credit | Exclusions for military and licensed peace officer retirement benefits; no general retirement-plan exclusion |
| Public-employee pension rule | No state-pension exclusion is described beyond licensed peace officers |
| Rate in the documents read | 2025 single filers: 0.00% to $48,475, then 1.95%, then 2.50% |
| Changed for 2026? | The documents read describe no 2026 change |
What the North Dakota documents say
The 2025 booklet says a taxpayer “you may deduct the amount of taxable military retirement benefits” and that “Certain retirement benefits of a licensed peace officer are excludable”. A peace officer needs a minimum of 20 years of service or must be retired disabled.
The booklet’s 2025 tax rate schedule, which it directs filers with North Dakota taxable income of $100,000 or more to use (full-year residents with less use the Tax Table), shows for single filers 0.00% up to $48,475, then “1.95% of amount over $ 48,475”, and 2.50% above $244,825.
Withholding and federal tax
Whether a state withholds is a separate rule: see state withholding on retirement withdrawals. Federal rules: 403(b) withdrawal rules and 457(b) withdrawal rules. The IRS says pension and annuity payments from a qualified employer plan have “all or some portion of the amounts you receive may be taxable”.
What the documents do not say
- The booklet does not name 403(b) or 457(b) plans.
- No statute section tied to retirement income is cited in the documents read.
- The rate schedule is for tax year 2025.
Common mistakes
- Assuming North Dakota’s rule for a 401(k) or IRA also covers a 403(b) or 457(b): read whether its documents name the plan.
Related: whether North Dakota taxes 401(k) and IRA withdrawals, North Dakota retirement taxes, whether North Dakota taxes pensions, 403(b) withdrawal rules, 457(b) withdrawal rules, and state withholding on retirement withdrawals.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for retirement income
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your withdrawals
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 Individual Income Tax Booklet: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
- Individual Income Tax (tax rates, 2025 tax year): https://www.tax.nd.gov/individual-income-tax
- IRS Tax Topic 410, Pensions and annuities: https://www.irs.gov/taxtopics/tc410
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.