North Dakota Leverages Oil Revenue to Build Nation's Most Competitive Tax Climate

Executive Briefing

• Generates $3.17 billion annually from oil and gas severance taxes, covering 41% of total state revenue
• Ranks second nationally in tax collections per capita at $9,834, yet remains one of the most resident-friendly tax states
• Relies minimally on income taxes, with individual income tax comprising just 6.4% of total 2023 revenue
• Demonstrates that revenue windfalls can reduce citizen tax burdens rather than fund government expansion
• Attracts residents and businesses as Tax Foundation data links competitive tax structures to net in-migration