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Historic Rehabilitation Tax Credit in North Dakota 2026

Calculate your historic rehabilitation tax credit tax savings in North Dakota. With North Dakota's 1.95% top state tax rate, your combined savings are higher.

North Dakota Tax Overview

State Income Tax
1.95%
flat
Sales Tax
5%
avg combined: 6.96%
Property Tax Rate
0.94%
Median Income
$68,131

Flat 1.95% — one of the lowest. Uses federal taxable income. Oil revenue keeps rates low.

North Dakota Income Tax Brackets (Single)

1.95%
$0 +
Your bracket
$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
23.9%
Combined Tax Rate

Historic Rehabilitation Tax Credit Savings Calculator for North Dakota

$
$

Federal Savings

$5,000

22% bracket

North Dakota State

$0

1.95% rate

Total Savings

$5,000

23.9% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in North Dakota

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 1.95% North Dakota state tax on top of federal savings.

Eligibility Requirements

Owners of certified historic structures who undertake substantial rehabilitation

  • 120% credit for certified historic structures
  • 2Must be a substantial rehabilitation (exceed adjusted basis)
  • 3Must follow Secretary of Interior's Standards

North Dakota residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 1.95%.

Common Mistakes to Avoid

  • !Not getting Part 1 certification before starting work
  • !Failing to meet the substantial rehabilitation test
  • !Not spreading credit over 5 years as required
  • !Forgetting to claim the deduction on your North Dakota state return (missing up to 1.95% additional savings)

North Dakota Filing Tips

The 1.95% rate makes ND nearly as tax-friendly as no-income-tax states. Federal standard deduction applies. Homestead credit available for qualifying homeowners.

Required Tax Forms

Form 3468NPS Form 10-168

File these forms with your federal tax return to claim the historic rehabilitation tax credit. North Dakota may require additional state-specific forms.

Other Tax Deductions in North Dakota

Mortgage Interest Deduction

Housing

~$3,810
est. savings

Property Tax Deduction

Housing

~$2,395
est. savings

Home Office Deduction

Housing

~$1,306
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$4,355
est. savings

PMI Premium Deduction

Housing

~$1,198
est. savings

Mortgage Points Deduction

Housing

~$2,177
est. savings

Historic Rehabilitation Tax Credit in Neighboring States

Montana

5.9% top rate (flat)

~$15,000
+10,000 vs North Dakota

South Dakota

No state income tax

~$15,000
+10,000 vs North Dakota

Minnesota

9.85% top rate (progressive)

~$15,000
+10,000 vs North Dakota

Tax Calculators for North Dakota Cities

FargoBismarckGrand Forks

Calculate Your Full Tax Savings in North Dakota

Use our free tax calculators to optimize your entire tax return for North Dakota.

Income Tax CalculatorNorth Dakota Income TaxFull Historic Rehabilitation Tax Credit Guide

Frequently Asked Questions

How much can I save with the Historic Rehabilitation Tax Credit in North Dakota?

In North Dakota, the historic rehabilitation tax credit can save you an estimated $5,000 per year on a $5,000 deduction. This includes $5,000 in federal tax savings and $0 in North Dakota state tax savings at the 1.95% marginal rate. The national average savings is $15,000/year.

What is the North Dakota state income tax rate?

North Dakota has a flat income tax system with a top rate of 1.95%. Flat 1.95% — one of the lowest. Uses federal taxable income. Oil revenue keeps rates low.

Who qualifies for the Historic Rehabilitation Tax Credit in North Dakota?

Owners of certified historic structures who undertake substantial rehabilitation. The eligibility requirements are the same whether you live in North Dakota or another state, as this is a federal tax credit. However, your total savings will vary based on North Dakota's 1.95% top state tax rate.

What tax forms do I need to claim the Historic Rehabilitation Tax Credit in North Dakota?

To claim the historic rehabilitation tax credit, you need to file Form 3468 and NPS Form 10-168 with your federal return. North Dakota residents should also check if the state allows this deduction on their state return for additional savings of up to 1.95%. Filing status affects your deduction limits and tax bracket.

Is the Historic Rehabilitation Tax Credit better in North Dakota than in states without income tax?

Yes, North Dakota residents benefit more because the state's 1.95% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 23.9% means more savings per dollar deducted.

What is the standard deduction in North Dakota for 2026?

North Dakota's standard deduction is $14,600 for single filers and $29,200 for married filing jointly. The 1.95% rate makes ND nearly as tax-friendly as no-income-tax states. Federal standard deduction applies. Homestead credit available for qualifying homeowners.

Related Calculators

Mortgage Interest Deduction in North Dakota

Avg savings: $3,500/year

Property Tax Deduction in North Dakota

Avg savings: $2,200/year

Home Office Deduction in North Dakota

Avg savings: $1,200/year

Home Energy Tax Credit in North Dakota

Avg savings: $1,800/year

Residential Solar Tax Credit in North Dakota

Avg savings: $7,500/year

Military Moving Expenses in North Dakota

Avg savings: $4,000/year