Does North Dakota tax pensions and retirement income?
Taxed, with narrow exceptions
Yes, generally. North Dakota's main retirement break is a deduction for military retirement benefits. We found no general exclusion for other pensions in the guidance we read.
In the state's own words
Copied word for word from the official document linked below each quote:
“Military Retirement Benefits Deduction Military retirement benefit payments received by retired U.S.”
And Social Security?
No. Since 2021, everyone can deduct the taxable part of their Social Security in North Dakota, whatever their income. The North Dakota Social Security page quotes the rule.
Federal tax still applies
Whatever North Dakota does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the North Dakota Office of State Tax Commissioner before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Guideline: Income Tax, Military Service MembersNorth Dakota Office of State Tax Commissioner. Read on November 12, 2026.