North Dakotans Receive Higher State Tax Refunds

Federal policy changes drive increase in average refund amounts

Apr. 16, 2026 at 9:25am

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An abstract illustration featuring bold, overlapping shapes in shades of blue, green, and yellow, conceptually representing the increased state tax refunds received by North Dakota residents.The vibrant colors and geometric patterns of this illustration capture the financial boost North Dakota taxpayers are experiencing through higher state income tax refunds.Bismarck Today

North Dakota taxpayers are seeing larger state income tax refunds this year, with the average refund up by nearly $22 compared to the previous year. Tax Commissioner Brian Kroshus attributes the increase to recent federal policy changes that have reduced federal taxable income for many individuals, including the elimination of taxes on overtime earnings and tips.

Why it matters

The higher refunds provide welcome financial relief for North Dakota residents, especially service industry workers who have benefited from the federal tax exemption on tips. However, some of the federal provisions are temporary and could expire in the future, leaving uncertainty about the long-term impact on state tax burdens.

The details

Data from the North Dakota Tax Commissioner's Office shows that as of April 14, 2026, the state had processed 375,000 tax returns and issued $72.5 million in refunds - a $3.1 million increase over the prior year. The average refund per filer is around $430, up nearly $22 from the previous season. While the final figures won't be available until later in 2026, the office notes that about 13-14% of North Dakotans typically file for extensions each year.

  • As of April 14, 2026, the North Dakota Tax Commissioner's Office had processed 375,000 tax returns.
  • The total amount of state refunds issued reached $72.5 million, which marks an increase of $3.1 million compared to the previous year.

The players

Brian Kroshus

The North Dakota Tax Commissioner, who attributes the increase in refunds to recent changes in federal tax policy.

Merab Bennett

A server at Peacock Alley in Bismarck, who reported receiving a $6,000 tax refund - triple the amount she had received in previous years.

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What they’re saying

“The current policy allows tips up to $25,000 to remain untaxed.”

— Merab Bennett, Server

“Take advantage of it while People can because we don't know if this is going to stick around. And we don't know what's next.”

— Merab Bennett, Server

What’s next

The current federal benefits providing tax relief for North Dakotans are temporary, with the exemptions for taxes on tips and overtime earnings scheduled to expire at the end of 2028 unless Congress takes additional legislative action to extend them.

The takeaway

The higher state tax refunds are a welcome financial boost for North Dakota residents, especially service industry workers who have benefited from the federal tax exemption on tips. However, the long-term sustainability of these tax benefits remains uncertain, highlighting the need for ongoing monitoring and potential legislative action to ensure continued relief for taxpayers.