North Dakota provides meaningful tax relief for senior citizens, particularly through property tax credits for homeowners and renters.
In addition, the state is favorable to retirees because it does not tax Social Security benefits.
While North Dakota does not offer a broad senior income tax deduction, its targeted property tax programs can significantly reduce housing costs for eligible older residents.
Table of Contents
North Dakota Senior Tax Deductions and Credits
Homestead Property Tax Credit (For Homeowners)
The Homestead Property Tax Credit is the primary tax relief program for senior homeowners in North Dakota. It reduces the taxable value of your primary residence, which lowers the amount of property tax you owe.
100% reduction of taxable value, up to a maximum credit of $9,000
Income over $40,000 but less than $70,000
50% reduction of taxable value, up to a maximum credit of $4,500
Example: A 70-year-old homeowner with $35,000 in annual income may qualify for the full homestead credit, potentially eliminating a large portion—or all—of their property tax bill.
How to Apply
Applications must be submitted every year
File with your local assessor or county tax director
The deadline is generally April 1 of the tax year
Because the credit is income-based, accurate income reporting is essential.
Renter’s Refund Program
North Dakota also offers relief for senior renters through the Renter’s Refund program.
How the Refund Works
A refund is available if 20% of your annual rent exceeds 4% of your income
The maximum refund is $240
Eligibility Requirements
Be 65 years or older, or permanently and totally disabled
Have an income of $70,000 or less after deducting medical expenses
Application Deadline
Applications must be submitted to the Office of the State Tax Commissioner
The deadline is June 1 following the year for which the refund is claimed
Other Important North Dakota Tax Considerations
Social Security Income
North Dakota does not tax Social Security retirement benefits, making it more attractive for retirees who rely heavily on these payments.
Pensions and Retirement Accounts
Most pension income, IRA distributions, and 401(k) withdrawals are taxable at the state level
Military retirement pay is exempt from North Dakota state income tax
Primary Residence Credit (PRC)
Available to all North Dakota homeowners, regardless of age or income
Provides a credit against property tax owed
This is a separate program from the senior Homestead Property Tax Credit
Homeowners may be eligible for both programs if requirements are met
Why Electronic Filing Is Recommended for North Dakota Seniors
Electronic filing allows faster confirmation of state and federal returns, which helps when applying for property tax credits.
✔ Easier Documentation
County assessors often request copies of filed tax returns. Electronic filing makes it easy to retrieve and submit documentation.
✔ Automatic Application of Credits
Tax software helps ensure:
Social Security income is properly excluded
Medical expenses are calculated correctly
Income thresholds for senior programs are not exceeded unintentionally
Final Takeaway
North Dakota offers strong property tax relief for seniors through its Homestead Property Tax Credit and Renter’s Refund programs, along with the advantage of no state tax on Social Security benefits.
Because eligibility depends heavily on income calculations and annual applications, electronic filing is the most efficient and reliable way for seniors to claim these benefits and provide accurate documentation to local tax authorities.
