Taxes

Tax rates in Fargo Moorhead depend on where you locate your business or home. For those communities located in Cass County, North Dakota rates apply. For those communities located in Clay County, Minnesota rates apply. For additional information or to ask a question, please contact us or review the state tax websites:

Corporate Income Tax

Minnesota* Rate
All income levels 9.8%
Minnesota Alternative Minimum Tax 5.8%
North Dakota Rate
$0–$25,000 1.68% of North Dakota taxable income
$25,001–$50,000 $420 + 4.23% of amount over $25,000
$50,001 and above $1,477.50 + 5.15% of amount over $50,000

*Minnesota is phasing in a single-sales apportionment for the income tax by 2014. Apportionment and apportionment formulas are a key feature in state corporate taxes, as they determine how much of a business's income is taxable. Minnesota apportions corporate income using the Minnesota proportions of a corporation's sales, payroll and taxable property to determine corporate income tax. the state is currently in the process of phasing in a single sales apportionment by 2014. Please see the table below for schedule:

Tax Year Sales Property Payroll
2011 90% 5% 5%
2012 93% 3.5% 3.5%
2013 96% 2% 2%
2014 100% 0% 0%

The effects vary by type of business, but those businesses whose Minnesota sales factor is lower than the average of their Minnesota property and payroll factors will receive a tax cut. The larger the disparity, the bigger the benefit. The policy benefits companies with plants and personnel in Minnesota, but most of their sales elsewhere.

Personal Income Tax

Minnesota - married, filing jointly Rate
$0–$33,770 5.35%
$33,771–$134,170 $1,777.27 + 7.05% of the amount over $33,220
$134,171 and above $8,739.15 + 7.85% of the amount over $131,970
Minnesota - married, filing separate Rate
$0–$16,890 5.35%
$16,891–$67,090 $888.64 + 7.05% of the amount over $16,610
$67,091 and above $4,369.93 + 7.85% of the amount over $65,990
Minnesota - filing single Rate
$0–$23,100 5.35%
$23,101–$75,890 $1,216.06 + 7.05% of the amount over $22,730
$75,891 and above $4,876.42 + 7.85% of the amount over $74,650
Minnesota - head of household Rate
$0–$28,440 5.35%
$28,441–$114,290 $1,496.93 + 7.05% of the amount over $27,980
$114,291 and above $7,449.95 + 7.85% of the amount over $112,420
North Dakota - married, filing jointly Rate
$0–$57,700 1.51%
$57,701–$139,350 $871.27 + 2.82% of the amount over $57,700
$139,351–$212,300 $3,173.80 + 3.13% of the amount over $139,350
$212,301–$379,150 $5,457.14 + 3.63% of the amount over $212,300
$379,151 and above $11,513.79 + 3.99% of the amount over $379,150
North Dakota - married, filing separate Rate
$0–$28,850 1.51%
$28,851–$69,675 $435.64 + 2.82% of the amount over $28,850
$69,676–$106,150 $1,586.90 + 3.13% of the amount over $69,675
$106,151–$189,575 $2,728.57 + 3.63% of the amount over $106,150
$189,576 and above

$5,756.90 + 3.99% of the amount over $189,575

North Dakota - filing single Rate
0$–$34,500 1.51%
$34,501–$83,600 $520.95 + 2.82% of the amount over $34,500
$83,601–$174,400 $1,905.57 + 3.13% of the amount over $83,600
$174,401–$379,150 $4,747.61 + 3.63% of the amount over $174,400
$379,151 and above $12,180.04 + 3.99% of the amount over $379,150
North Dakota - head of household Rate
$0–$46,250 1.51%
$46,251–$119,400 $698.38 + 2.82% of the amount over $46,250
$119,401–$193,350 $2,761.21 + 3.13% of the amount over $119,400
$193,351–$379,150 $5,075.84 + 3.63% of the amount over $193,350
$379,151 and above $11,820.38 + 3.99% of the amount over $379,150

Corporate Property Tax

Property tax rates in Cass County, N.D. are based on the market value of the assessed property. Rates vary according to municipality, type of property and the jurisdiction levy. To calculate property tax on a specific piece of property, please visit the Cass County assessor's website.

Property tax rates in Clay County, Minn. are based on the market value of the assessed property. Rates vary according to municipality, type of property and jurisdiction levy. To calculate property tax on a specific assessed value, please visit the property tax calculator provided by the League of Minnesota Cities.

Unemployment Insurance Tax

North Dakota
  • 2009 Taxable Wage Base is $23,700
  • New Employer Rate:
    • Non-Construction: 1.17 percent (maximum wage cap 2009: $23,700)

When employers become liable for unemployment insurance, they are qualified as "new employers" and are assigned a new employer rate. Tax rates are re-determined for each calendar year based on the employer's history as of the preceding October.

If prior to October, then "non-construction" employers that have at least six quarters of coverage are classified as "experience-rated" employers beginning that calendar year. Otherwise they continue as "new employers." Experience-rated employers are assigned rates based on their record of unemployment insurance taxes paid and benefits charged.

The rates vary each year depending on the employer's individual history and the condition of the state's unemployment compensation trust fund. The maximum amount of each worker's wages subject to taxation each year is 70 percent of the statewide average annual payroll.

Minnesota
  • 2009 Taxable Wage Base is $26,000
  • Base Tax Rate: 0.40% of taxable wages

Minnesota's Unemployment Insurance tax rates vary each year depending on the employer's individual history and the condition of the Minnesota UI Trust Fund. If the balance of the UI Trust Fund falls below a certain level, an additional assessment takes effect for the following year. In 2009, an additional assessment of 14 percent of the tax due is in effect. Employers must also pay a workforce development fee of 0.10 percent in 2009 to support employment and training programs for workers who have permanently lost their jobs.