The tax cut trend has taken a large part of the country by storm, but no other state has cut its income-tax rate more than North Dakota since 2004. The top rate for North Dakota has fallen from 5.54 percent to 2.5 percent in 2024, a 55 percent decrease. 

Over that same time, North Dakota state revenues grew by 245 percent. 

Sources: North Dakota Annual Comprehensive Financial Report; Federal Reserve Bank of St. Louis; CPI Inflation Calculator

North Dakota started aggressively cutting the rate in 2008 while revenues climbed to a peak in 2014 of $13,432 per capita. As a downturn in the oil and gas industry hit, just like in Oklahoma, revenues dipped for a couple of years, then began to climb back up before Covid-19 lockdowns were implemented across the country. 

Per-capita revenue for North Dakota, excluding federal dollars, grew from $3,308 (when adjusting for inflation) to $11,404, while the state’s income tax rate was cut in half. This is yet another example of a state’s budget that didn’t collapse from a reduction in the state’s income tax.