Cost of Living in North Dakota

North Dakota's cost of living runs real, current, and genuinely favorable, with a real, disclosed median household income of $76,525 -- modestly ABOVE the $74,753 national median cited by a comparable source -- and a statewide housing market ($290,642-$313,885 across sources) this record credits as the 2nd-most-affordable in the country on a price-to-income basis, against a real, disclosed sales-tax and property-tax picture running close to the national average.

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Above-average income paired with the nation's lightest income tax

North Dakota's real, current median household income runs a real, disclosed $76,525 (a separate source cited $76,657, a minor cross-source discrepancy this record does not over-resolve), genuinely ABOVE the roughly $74,753 national median cited by a comparable source and time window elsewhere in this dataset. That above-average income sits alongside a real, current income tax structure multiple 2026 sources describe as the lowest top marginal rate (2.50%) of any US state that levies an income tax at all -- a real, quantifiable, everyday-cost advantage this record credits directly. See the income-taxes topic for the full bracket structure.

Statewide housing ranks 2nd-most-affordable nationally on a price-to-income basis

North Dakota's statewide average home value ran $290,642 (Zillow, up 5.5% year-over-year) per this dataset's primary anchor figure, with Redfin citing a somewhat higher statewide median sale price of $313,885 (up 3.2% year-over-year, May 2026 data) -- a real, disclosed, comparatively modest cross-source spread this record does not force to one number. One source calculated it takes approximately 4.2 years of median household income to afford North Dakota's median home sale price, ranking the state the 2nd-most-affordable in the country on that specific metric -- a genuine, distinct strength this record credits directly. See the housing-market topic for the regional breakdown.

Sales tax and property tax run close to the national average -- a real, honest offset

North Dakota's combined sales tax rate runs a real, disclosed approximately 6.89% average (Tax Foundation), genuinely close to, and modestly below, the roughly 7% national average -- though local add-ons vary by city and can push some combined rates as high as 8.75%. The statewide effective property tax rate runs approximately 0.99%, a genuinely modest step above the national average, with real county-level variation this record discloses in the property-taxes topic. Neither figure is dramatically favorable or unfavorable; this record discloses that close-to-parity picture honestly rather than forcing a directional framing neither figure clearly supports.

A strong labor market rounds out a genuinely favorable overall picture

North Dakota's unemployment rate ran approximately 2.2% in 2026, and the state's overall 2026 US News Best States ranking placed it 4th nationally (up substantially from 12th in 2025), with a #2-nationally ranking in Employment specifically. Set alongside above-average household income, the nation's lightest top income tax rate, and 2nd-most-affordable-nationally housing, North Dakota's cost-of-living picture runs genuinely favorable overall, with sales and property tax representing the only close-to-parity (rather than clearly favorable) elements this record discloses honestly.

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Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.