You're probably tired of hearing about how "affordable" North Dakota is while your property tax bill keeps climbing. It's a weird paradox. We have a massive state budget surplus, yet homeowners feel the squeeze every time the county auditor sends out those dreaded statements.
But here’s the thing. North Dakota actually has one of the most aggressive property tax relief programs in the country right now. Most people just call it the nd property tax credit, though officially, the state likes to use fancy terms like the Primary Residence Credit or the Homestead Tax Credit. If you aren't paying attention to the deadlines, you are essentially handing a donation to the state government that they don't even want.
Seriously.
The state legislature basically overhauled this whole system recently. They realized that high property taxes were becoming a political nightmare. So, they carved out a massive chunk of the budget to buy down your local tax liability. It’s not a "discount" from the city; it’s the state of North Dakota writing a check to your local taxing district so you don't have to.
The $500 Credit Almost Everyone Misses
Let’s talk about the big one first. The Primary Residence Credit.
Basically, if you own a home in North Dakota and you live in it as your main spot, you’re likely eligible for up to a $500 credit. It doesn’t matter if you’re a millionaire or working hourly at a shop in Minot. If it’s your primary residence, the state wants to give you five hundred bucks off your tax bill.
But there’s a catch.
It isn't automatic. Well, it was supposed to be easier, but you still have to apply through the North Dakota Office of State Tax Commissioner. I’ve seen so many people assume that because the "state knows I live here," the credit will just show up. It won't. You have to raise your hand. Honestly, it takes about five minutes online, but if you miss the window, that $500 stays in Bismarck.
The eligibility is pretty straightforward. You have to be a resident. The home has to be your "primary" home. You can't claim it on a hunting cabin in the Badlands or a rental property you own in Fargo. Just the roof over your own head.
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Why the Homestead Credit is a Different Beast
Now, if you're over 65 or you have a permanent disability, the nd property tax credit landscape gets a lot more interesting—and a lot more valuable. This is the Homestead Tax Credit.
This isn't just a flat $500. This is a percentage reduction in your home's taxable value.
Think about it this way: if your home is valued at $200,000, the state might treat it as if it's only worth $100,000 for tax purposes. That can save you thousands, not hundreds. But the math is kind of crunchy. It’s based on your income.
Specifically, your "assets" (excluding the value of your home) have to be below $500,000. That’s a pretty generous ceiling. A lot of retirees think they don't qualify because they have a decent 401(k), but unless you're sitting on half a million in liquid assets outside your house, you’re probably in the clear.
The income brackets change occasionally, but as of the most recent legislative sessions, if your income is below a certain threshold—usually around $40,000 to $70,000 depending on the specific tier—you get a massive break.
- Income below $40,000? You might get 100% of your taxable value reduced (up to a certain cap).
- Income a bit higher? The percentage drops, but it’s still a huge win.
Don't let the paperwork scare you. I've talked to folks in Grand Forks who were ready to sell their homes because the taxes were eating their social security checks. Once they actually filled out the Homestead application, their tax bill dropped by 60%. It’s life-changing money for someone on a fixed income.
The "Disabled Veteran" Factor
We need to talk about our vets because North Dakota actually treats veteran property tax relief with a lot of respect.
If you’re a veteran with a service-connected disability of 50% or greater, you qualify for a specific nd property tax credit that functions similarly to the Homestead Credit but often with even better terms. There’s no age requirement here. You could be 25 or 85.
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The credit is prorated based on your disability percentage. So, if you’re 100% disabled, you get a much larger break than someone at 50%. The key thing to remember is that this credit also extends to unremarried surviving spouses. If a veteran passed away but qualified for this, the spouse keeps that protection. It’s one of the few things the government gets right in terms of long-term support for military families.
How to Actually Claim Your Credit Without Losing Your Mind
The process is actually getting better. You used to have to go down to the courthouse and talk to the assessor, which is fine if you like small talk, but most of us just want it done.
Now, you can do most of this via the North Dakota Tax Commissioner’s website.
- Find your parcel number. You’ll see this on your last tax statement. It’s a long string of numbers that identifies your specific dirt on the map.
- Verify your residency. You'll need your ND driver's license or state ID.
- Submit before the deadline. This is the big one. Usually, you want to have this sorted by March or April of the tax year to see it reflected on your end-of-year bill.
If you’re applying for the Homestead or Veteran credit, you’re going to need more documentation. They'll want to see your 1040 from last year or your VA disability award letter. Don't send originals. They just need copies.
A Quick Warning About "Renovations"
Here is a weird quirk about North Dakota tax law that most people miss. If you do major renovations, your "taxable value" jumps. Obviously. But, there are sometimes local exemptions for "home improvements" that can freeze your assessment for a couple of years.
It’s not technically the state-wide nd property tax credit, but it’s a local "new construction" or "remodeling" exemption that works in tandem with it. Always ask your local city assessor if they have a "two-year exemption" for improvements. Many ND cities do this to encourage people to fix up older homes.
Common Blunders and Why They Happen
People fail to get their money for three main reasons.
First, they think the credit is for the previous year. In ND, we pay taxes in arrears. So, the bill you pay in January 2026 is actually for 2025. This confuses everyone. You need to apply for the credit for the year you are currently living in.
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Second, the "Income" definition. For the Homestead credit, "income" includes almost everything—Social Security, pensions, interest, even some non-taxable income. People often under-report or over-report and get their application kicked back. Just use your total gross income as a starting point.
Third, forgetting to re-apply. While some of these credits are becoming more "permanent" once you're in the system, you should check your status every single year. Laws change in Bismarck every two years when the legislature meets. What was a $500 credit this year might be $800 next year—or the rules for qualifying might shift.
The Political Reality of Tax Relief
Let's be real for a second. The reason the nd property tax credit exists in its current form is because there’s a huge push in North Dakota to abolish property taxes entirely. You might have seen the petitions or the ballot measures.
The legislature is trying to prevent that by making the current system more bearable.
This means we are in a "golden era" of state-funded relief. The state is flush with oil money (the Legacy Fund), and they are using it to subsidize your property taxes so you don't vote to blow up the whole system. Take advantage of it. Whether or not property taxes are eventually abolished, right now, the money is on the table.
Actionable Steps to Take Right Now
Don't just read this and think, "I should do that later." Later is when deadlines die.
- Step 1: Check your last tax statement. Did you see a line item for "Primary Residence Credit" or "State Paid Tax Relief"? If not, you’re leaving money on the table.
- Step 2: Visit the ND Tax Commissioner website. Search for "Primary Residence Credit" and use their portal. It’s surprisingly user-friendly for a government site.
- Step 3: Call your local County Auditor. If you’re confused, these people are actually super helpful. Unlike the IRS, your local county auditor in places like Cass, Burleigh, or Ward county will usually pick up the phone and walk you through the form.
- Step 4: Gather your docs. If you’re over 65 or disabled, get your 1040 and your VA or SSA letters ready now.
- Step 5: Watch the 2025-2026 legislative updates. The North Dakota legislature loves to tweak these numbers. Stay tuned to local news out of Bismarck around February to see if they’ve increased the credit amounts.
If you own a home in the Peace Garden State, there is no reason to pay the full sticker price on your property taxes. The programs are there, the funding is there, and honestly, you've already paid for it through your sales and income taxes. You might as well get your cut back.
Check your eligibility today. Most applications are due by early spring to hit the current tax cycle, so digging up that parcel number tonight could save you $500 or more by the time the next bill hits your mailbox.