North Dakota, known as the "Peace Garden State", is an affordable Plains state with low housing and one of the lowest income taxes. Here is everything you need to know about the cost of living in the Peace Garden State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in North Dakota for a single person earning the median income of $64,800/year:
Each category shows how North Dakota compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in North Dakota.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in North Dakota.
The most popular cities for residents and newcomers in North Dakota:
Housing is the single biggest expense in North Dakota, as it is everywhere. The median home price in North Dakota is $235,000, and the median rent for a one-bedroom apartment is $850/month. With a housing cost index of 78, North Dakota housing is 22% cheaper than the national average.
Housing in North Dakota is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
North Dakota has a state income tax rate of 2.9%. On the median household income of $64,800, you will pay approximately $1,879/year in state income tax ($157/month). This is below the national average — a tax advantage for North Dakota residents.
The average single person in North Dakota spends approximately $400/month on groceries. A family of four can expect to spend $1,000-$1,200/month. The food cost index of 99 means groceries in North Dakota are 1% below the national average.
Gas prices in North Dakota average $3.1/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,860/year in fuel costs.
North Dakota healthcare costs are 9% above the national average (index: 109). The average annual healthcare cost per person in North Dakota is approximately $6,540 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in North Dakota averages $850/month ($10,200/year). This is below the national average, making North Dakota more family-friendly from a financial perspective. Many families in North Dakota find that one parent staying home is more cost-effective when two or more children need daycare.
North Dakota offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get access to growing job markets in Fargo and Bismarck, and a cost of living that leaves room for saving and investing.
See all North Dakota financial calculators:
North Dakota (ND) has a cost of living index of 93, meaning it is 7% cheaper than the US average. Housing is the biggest factor with an index of 78. The median rent is $850/month and the median home price is $235,000. North Dakota ranks #21 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in North Dakota is approximately $84,240/year ($7,020/month). For a family of four, aim for $142,560/year. This covers housing at 30% of income, groceries ($400/mo), transportation, healthcare, and a 15% savings rate. The median household income in North Dakota is $64,800.
The median rent for a one-bedroom apartment in North Dakota is approximately $850/month. A two-bedroom averages $1,148/month. Rent varies significantly by city: Fargo, Bismarck, Grand Forks are the most popular metro areas. Housing in North Dakota is affordable compared to the national average.
North Dakota is an excellent choice for affordability. With a cost of living 7% below the national average and median rent of just $850/month, your money goes significantly further here. Top cities include Fargo, Bismarck, Grand Forks.
The most affordable areas in North Dakota are typically smaller cities and rural areas away from the major metros. Within North Dakota, costs can vary 20-40% between the most expensive city (Fargo metro) and more affordable areas. Minot and West Fargo tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in North Dakota for a single person is approximately $400 ($1,000 for a family of four). North Dakota food costs are 1% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in North Dakota is approximately $120. Total utilities (electric, gas, water, internet) average $264/month. North Dakota utilities are 2% below the national average. Utility costs are manageable for most households.
North Dakota has a state income tax rate of 2.9%. On the median household income of $64,800, that is approximately $1,879/year in state income tax. This is below the national average — a tax advantage.