Updated October 4, 2026. Quick answer: Yes, after a 40% exclusion. The 2025 booklet says “you may be able to exclude 40 percent of the gain” on net long-term gain. North Dakota’s single-filer rates are 0.00% up to $48,475, 1.95% up to $244,825 and 2.50% above.
Selling your home? How the state taxes the profit, from its own tax documents: Does North Dakota tax the profit from selling your home?.
The same question for dividends and interest: does North Dakota tax dividends and interest.
How North Dakota treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | 40% of net long-term capital gain excluded; the rest taxed at the graduated rates; short-term gain gets no exclusion |
| 2025 rates, single | 0.00% up to $48,475; 1.95% from $48,475 to $244,825; 2.50% over $244,825 |
| Worksheet | “Multiply line 7 by 40% (.40)” |
| Statute | N.D.C.C. 57-38-30.3 reduces income by forty percent of net long-term capital gain; its printed bracket dollars are lower than the 2025 booklet’s, which this page follows |
A $50,000 long-term gain
On a $50,000 net long-term gain, 40% is excluded: computed as $50,000 x 40% = $20,000, leaving $30,000 taxable.
Inside the 0.00% bracket the tax on it is $0. Above $48,475 of taxable income, computed as $30,000 x 1.95% = $585, or at the top rate computed as $30,000 x 2.50% = $750.
What changes in 2026
The documents read print no 2026 rate or change.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether North Dakota taxes pensions, how North Dakota taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- 2025 North Dakota Individual Income Tax Booklet: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2025-iit/2025-individual-income-tax-booklet.pdf
- N.D.C.C. chapter 57-38 (Income Tax), sections 57-38-01.2 and 57-38-30.3: https://ndlegis.gov/cencode/t57c38.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.