Updated September 5, 2026. Quick answer: North Dakota has no general exclusion for ordinary pension, IRA, or 401k income, it is taxed as part of the state’s federal-conformity income tax base, but the state fully deducts military retirement pay as of the 2019 tax year and fully exempts Social Security benefits as of the 2021 tax year with no income cap.
More state retirement-income schedules, line by line: North Dakota ND-1 retirement lines.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: North Dakota tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does North Dakota tax 403(b) and 457(b) withdrawals.
The teachers’ fund (TFFR), with its options and refund rules from its own handbook: North Dakota TFFR retirement decisions.
Married, or planning for a spouse’s death? Whether the state is a community property state, from its own statutes: Is North Dakota a community property state?.
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 state’s income tax schedule: the North Dakota tax brackets for 2026.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: North Dakota tax withholding on IRA and 401(k) withdrawals.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does North Dakota have an inheritance tax?.
Trusts have their own page: does North Dakota tax trust income.
Dividends and interest have their own page: does North Dakota tax dividends and interest.
Annuity payments have their own page: does North Dakota tax annuity income.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does North Dakota have a gift tax?.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does North Dakota have an estate tax?.
Military retired pay has its own page: does North Dakota tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: North Dakota 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does North Dakota tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does North Dakota tax 401(k) and IRA withdrawals.
The NDPERS payment options and refund rules, from the system’s own documents: NDPERS retirement decisions.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how North Dakota taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | State and local government pensions, such as benefits from the North Dakota Public Employees Retirement System, do not have a general state exclusion and are taxed as ordinary income within North Dakota’s federally conformed tax base. The one narrow exception found is a Licensed Peace Officer Retirement Exclusion under N.D.C.C. sec. 57-38-30.3(2)(t) for individuals who worked at least 20 years as a licensed peace officer or who became disabled while serving in that role. |
|---|---|
| Private (employer) pensions | No North Dakota specific subtraction for private employer pension income was found in the guidelines or forms reviewed this session, so this income is taxed as ordinary income as part of the state’s federal adjusted gross income starting point. |
| Federal government pensions (FERS/CSRS) | No North Dakota specific subtraction for federal civilian (FERS or CSRS) pension income was found this session. It appears to be taxed as ordinary income the same as other pensions, since state guidance calls out only military retirement pay, Social Security, and the peace officer exclusion as special cases. |
| Military retirement pay | Since tax year 2019, North Dakota allows retired members of the U.S. armed forces, Reserve, and National Guard, and their surviving spouses, to deduct the full taxable amount of military retirement benefits as reported on the federal return, which functions as a full state exemption, under N.D.C.C. sec. 57-38-30.3(2)(r). |
| IRA and 401(k)/403(b) distributions | No specific North Dakota subtraction for IRA, 401k, or 403b distributions was found. These distributions appear to be taxed as ordinary income as part of the state’s federal conformity starting point. |
| General retirement-income exclusion | No general age based or retirement income exclusion beyond the military retirement deduction, the Social Security subtraction, and the narrow peace officer retirement exclusion exists. N.D.C.C. sec. 57-38-01.2 was repealed by S.L. 2009, ch. 545, sec. 32 and is no longer current law; the operative provisions are N.D.C.C. sec. 57-38-30.3(2)(r) (military retirement benefits), (2)(s) (Social Security benefits), and (2)(t) (retired law enforcement personnel benefits for at least 20 years of combined peace-officer service), confirmed this session by direct fetch of the full Century Code chapter text. |
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How our partner relationships workSocial Security
North Dakota fully exempts Social Security benefits from state income tax with no income cap, a change effective with the 2021 tax year; see the sibling page for details. Social Security has its own rules in every state; see the full breakdown in how North Dakota taxes retirement income generally.
Figures verified against the North Dakota Century Code chapter 57-38 (full text), the North Dakota Office of State Tax Commissioner Military Service Members and Individual Income Tax History pages, and the 2025 Schedule ND-1SA instructions on September 30, 2026.
Statute and sources
Governing citation: N.D.C.C. sec. 57-38-30.3(2)(r), (2)(s), (2)(t) (adjustments to taxable income for individuals and fiduciaries; sec. 57-38-01.2 was the pre-2009 citation and was repealed).
- ND Office of State Tax Commissioner, Military Service Members page
- ND Office of State Tax Commissioner, Tax Guidelines Search index
- ND Office of State Tax Commissioner, Individual Income Tax page
- North Dakota Legislative Branch, Century Code Title 57 Chapter 38 index
- North Dakota Legislative Branch, Century Code Title 57 Chapter 38 full text (confirms sec. 57-38-01.2 repealed 2009; current provisions at sec. 57-38-30.3(2)(r)/(s)/(t))
Read September 5, 2026.
Related: how North Dakota taxes retirement income generally · does North Dakota tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.