North Dakota conforms to federal Section 1031, so a properly structured like-kind exchange defers both your federal and North Dakota capital-gains tax. North Dakota generally taxes capital gains as ordinary income at rates up to 2.5%. North Dakota offers a partial capital-gains exclusion and low rates.
Yes. North Dakota conforms to federal Section 1031, so a properly structured like-kind exchange defers both your federal and North Dakota capital-gains tax. You still must use a Qualified Intermediary, identify replacement property within 45 days, and close within 180 days.
North Dakota taxes capital gains as ordinary income, with a top marginal rate of about 2.5%. A 1031 exchange defers this state tax along with the federal tax.
No. North Dakota does not impose a 1031 exchange clawback, so it does not separately track deferred gain on out-of-state replacement property.
Nonresident seller withholding may apply at closing.
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Disclaimer: This page is general education, not tax or legal advice, and reflects commonly-cited 2025 rules. Confirm current rates and requirements with a qualified tax advisor and a Qualified Intermediary before acting.