North Dakota's Recently Expanded Senior Homestead Credit (N.D.C.C. §57-02-08.1): 100% Reduction Up to $70,000 Income, 50% Up to $100,000, Capped at $4,500 of Taxable Value
Updated April 2026
North Dakota expanded its Homestead Property Tax Credit under N.D.C.C. §57-02-08.1 in recent legislation. For homeowners age 65+ or permanently and totally disabled, the credit operates as a sliding-scale reduction in taxable valuation: 100% credit when household income is at or below $70,000, scaling down to 50% credit when income reaches $100,000, and zero above $100,000. The maximum reduction is $4,500 of taxable valuation, meaning a fully-eligible senior's homestead has up to $4,500 of taxable value excluded, with the local property tax rate then applied to whatever remains. There is no asset limitation under the program.
Eligibility and the Sliding Scale
- Age 65 or older as of the assessment date (typically February 1), OR permanently and totally disabled (any age) with appropriate documentation.
- Owner of the property with an ownership interest, living in the property as primary residence.
- Household income at or below $100,000 for the prior calendar year, including spouse's and any dependents' income.
- No asset limit for homeowners (renters have a separate program with different rules).
The sliding scale:
- $0 – $70,000 income: 100% credit (up to the $4,500 maximum reduction in taxable value).
- $70,001 – $100,000 income: credit phases down linearly from 100% to 50%.
- Above $100,000: no credit.
ND's structural choice, using a relatively narrow income band (only $30,000 between full and half credit), produces sharper phase-out behavior than states with longer sliding scales. A senior at $85,000 income gets approximately 75% credit; the same senior at $95,000 gets approximately 58%.
Application: County Director of Tax Equalization
Apply via the 2025 Homestead Credit Application form filed with your county Director of Tax Equalization (the ND analog to the assessor) by February 1 of the assessment year. Required documentation: proof of age (driver's license, birth certificate, or Medicare card), proof of ownership, prior-year income documentation (federal tax return or other supporting documents).
Once granted, ND requires periodic recertification, typically annually with updated income documentation, because the sliding-scale credit amount depends on current-year income. Missing the annual recertification doesn't terminate the credit permanently but can delay receipt and may force the senior to pay full tax and seek refund later.
Disabled Veterans: Separate, More Generous Path
North Dakota also runs a Disabled Veterans Property Tax Credit for veterans rated 50% or more service-connected disabled (with full credit at 100% rating). The DV credit is more generous than the homestead credit on dollar terms and has different eligibility conditions, including no income test for fully-rated veterans. Veterans should apply under the DV path even if also age-eligible for the homestead credit; the DV path is generally larger.
Frequently Asked Questions
My North Dakota household income is $85,000. What homestead credit do I get?
You're in the sliding-scale band, between $70,000 (100% credit) and $100,000 (50% credit). At $85,000, you're halfway through the band, so your credit lands around 75% of the maximum. The maximum reduction is $4,500 of taxable value, so 75% of that is $3,375 of taxable value reduction. At ND's typical effective property tax rate (~1.0%), that translates to roughly $34 in actual tax savings per year, modest but real. If your income drops below $70,000 in a future year, you'd move to the full 100% credit.
I'm 65 and 70% service-connected disabled in ND. Should I apply for the senior credit or the DV credit?
The Disabled Veterans Property Tax Credit. North Dakota's DV credit at the 70% rating produces a larger benefit than the senior homestead credit, and the eligibility test is structurally different (rating-based, not income-based). At 100% service-connected rating, the DV credit is even larger. File the DV credit application via your county tax office with VA documentation of your rating. The senior homestead credit is the path for non-veteran seniors or veterans with below-50% service-connected ratings; for 50%+ rated vets, the DV path is almost always more favorable.
Does the North Dakota homestead credit have an asset test?
Not for homeowners. ND's Homestead Property Tax Credit has no asset limitation for homeowners, unlike Maine, Maryland, or several other states that combine an income test with a net-worth test. As long as your household income is at or below $100,000, you qualify for some credit (sliding-scale percentage based on income tier). The renter version of the program has its own rules, which include some asset/income complexity, but for homeowners the eligibility test is purely income-based.
