What’s the cost of living in North Dakota?

1 min read by Rachel Carey Last updated January 17, 2024

Wondering about the cost of living in North Dakota? This article summarizes everything you need to know, from tax rates to healthcare costs. 

When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If North Dakota is at the top of your list, here are some current statistics related to the cost of living in the state that could help you make up your mind.    

The average cost of living in North Dakota 

North Dakota is home to over 700,000 people. 

According to research, North Dakota's living cost is 3% lower than the national average.  

While according to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 25th in a list of states with the lowest to the highest cost of living. 

Housing costs in North Dakota 

As of March 2023, the average home value in North Dakota is estimated to be around $242,261, according to the Zillow Home Value Index as of March 2023.  

It’s important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data:

CityAverage Home Value
Fargo $283,968
Bismarck $335,682
Grand Forks $251,642
Minot $239,193
West Fargo $313,127

The monthly rental price ranges across the state for those considering renting in North Dakota. For example, the Fair Market Rent in North Dakota is $826 for a 2-bedroom apartment in Adams County, ND. 

Utility costs in North Dakota 

Utility costs play a significant role in North Dakota's overall cost of living. According to Forbes, the average monthly cost is around $396.  

UtilityAverage cost in North Dakota
Energy bill $113.93
Monthly water bill $31
Internet $30
Natural gas $62
Phone bill $114
Streaming $47

Grocery and food costs in North Dakota 

When it comes to groceries and food costs, North Dakota generally aligns with prices found elsewhere in the United States.   

According to Zippia, those in Fargo pay $326 on average each month.  

According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.   

Transportation costs in North Dakota 

Transportation costs, including gas prices and vehicle maintenance, impact North Dakota's overall cost of living.  

According to MIT, a single adult with no children can expect to pay upwards of $5,300. 

Gas prices in North Dakota are typically in and around the national average. North Dakota was lower than the national average at the time of writing. These prices fluctuate over time.   

It is also worth noting that prices can vary across different regions within the state.  

Healthcare costs in North Dakota 

Understanding healthcare expenses is crucial when considering the cost of living.  

The specific healthcare costs in North Dakota can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. 

MIT estimates:  

ScenarioAnnual healthcare expenditure
One adult, no children $2,996
One adult, one child $8,949
One adult, two children $8,959
Two adults (one working), no children $6,839
Two adults (one working), one child $8,959
Two adults (one working), two children $8,885
Two adults (two working), no children $6,839
Two adults (two working), one child $8,959
Two adults (two working), two children $8,885

Childcare costs in North Dakota 

Families in North Dakota currently pay around $8,960 per year for childcare for one child. This figure doubles for two children.   

However, it's important to note that this figure can vary across the state.  

Taxation in North Dakota 

North Dakota’s state income tax rates range between 1.10% and 2.90%. 

Here's a comparison of income tax rates among some neighboring states:  

StateIncome Tax Rate Range
North Dakota 1.10% - 2.90%
Minnesota 5.35% - 9.85%
Montana 1.00% - 6.90%
South Dakota No state income tax
Wyoming No state income tax

The sales tax rate in North Dakota is 5%. However, it's important to note that local jurisdictions in North Dakota may impose additional sales taxes, which can vary. As a result, the combined sales tax rate, including state and local taxes, can range from 5% to 8.5%, depending on the location. 

The bottom line

The amount of money needed to live comfortably in North Dakota can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think. 

It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in North Dakota. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning. 

Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today. 

Senior Content Writer

Rachel Carey

Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.