North Dakota Collects $9,834 Per Capita While Keeping Taxes Low With 41% of Revenue From Oil
Updated
Updated · Fox News · Jun 18
North Dakota Collects $9,834 Per Capita While Keeping Taxes Low With 41% of Revenue From Oil
1 articles · Updated · Fox News · Jun 18
Summary
$9,834 per resident in 2023 made North Dakota the No. 2 state for state and local tax collections per capita, yet it still ranks as one of the nation’s more tax-friendly states.
$3.17 billion of its $7.72 billion total tax haul came from oil and gas severance taxes, letting the state raise large sums without leaning heavily on residents’ paychecks.
Just 6.4% of revenue came from individual income taxes and 4.2% from corporate income taxes, giving lawmakers room to pair tax cuts with solid state finances.
Tax Foundation analyst Nicole Fox said IRS migration data show states with more competitive tax structures and lower living costs tend to gain residents, businesses and investment.
North Dakota’s model is hard to copy because few states sit atop major oil reserves, but advocates say the broader lesson is to use revenue windfalls to cut tax burdens rather than expand spending.