NORTH DAKOTA - As North Dakota enters 2026, the state is implementing a significant wave of property tax relief and income tax reforms. While many administrative changes in North Dakota take effect following the legislative session in July, several of the State most significant fiscal milestones and regulatory updates are tied explicitly to the January 1st start date.
Here are five of the most impactful new laws and regulations taking effect in North Dakota this January.
1. Expanded Primary Residence Credit ($1,600 Window)
StartJanuary 1ry 1, 2026, the application window opens for the State significantly expanded Primary Residence Credit (PRC). This program, which received a significant boost during the 2025 legislative session, provides direct property tax relief to homeowners.
- The Benefit: Eligible homeowners can apply for up to $1,600 in credit against their property tax obligation.
- Widespread Impact: State officials estimate that this expansion will effectively zero out the property tax bills for nearly 50,000 North Dakota households.
- Application Period: The online-only application window runs from January 1st to April 1st.
2. The 3% Local Property Tax Levy Cap
In a move to provide long-term stability for taxpayers, a new law limiting how much local governments can increase property tax levies takes full effect this January.
- The Restriction: Local government entities are now generally prohibited from increasing their property tax levies by more than 3% annually.
- Accountability: If a local government does not use the full 3% increase in a given year, they may "bank" that unused percentage for future use (up to five years), but the initial cap applies to all 2026 property tax budgeting processes starting this month.
3. New Charitable Contribution Tax Deduction
North Dakota is introducing a new philanthropic incentive as part of its broader tax reform package. Starting with the 2026 tax year, residents can take advantage of a dedicated state deduction for charitable giving.
- The Deduction: Taxpayers can now deduct charitable contributions up to $1,000 for single filers and $2,000 for married couples filing jointly.
- Tax Benefit: Unlike in previous years, when standard deductions often swallowed up these, this state-level focus is intended to encourage local giving to North Dakota nonprofits and religious organizations.
4. State Child Tax Credit Increase
To support families facing rising childcare and living costs, North Dakota's state-level Child Tax Credit is officially increasing on January 1st.
- The Adjustment: The credit is increasing to $2,200 per qualifying child.
- Support for Families: This change is part of a legislative effort to make North Dakota one of the most family-friendly states in the region, providing additional relief that is automatically reflected in the updated 2026 withholding tables.
5. Pesticide Certification Modernization (SB 2086)
For the State massive agricultural sector, Senate Bill 2086 introduces new standards for pesticide application and certification that become enforceable on January 1st.
- Certification Standards: The law updates the requirements for private and commercial pesticide applicators to align with new federal safety guidelines.
- Training and Recordkeeping: Farmers and agricultural workers must now comply with expanded training protocols and more rigorous recordkeeping requirements for "restricted-use" pesticides to ensure environmental safety and worker health.
A Note on the North Dakota Minimum Wage
Unlike many of its neighbors, North Dakota's minimum wage will remain at the federal floor of $7.25 per hour for 2026. While there have been ongoing discussions in the legislature regarding a potential increase, no state-level changes were passed that take effect this January.