You can now apply for a $500 North Dakota property tax credit

Much-needed relief for North Dakota homeowners is on the way and could give eligible homeowners a $500 discount on their 2024 property taxes. The North Dakota Property Tax Credit Program, also known as the Primary Residence Credit, was designed by the state Department of Revenue. Eligible residents must present proof of residency and identity to receive the credit.

North Dakota Property Tax Credit: When and How to Apply

Homeowners in North Dakota can now apply for the Primary Residence Credit. The state Department of Revenue began accepting applications for North Dakota property tax deductions on January 1. Since applications were accepted, North Dakota has already received more than 20,000 applications.

Residents who own a home in North Dakota and live there most of the time are likely eligible for the tax credit. There are no age or income restrictions to apply for the tax credit. The last date to apply for credit is March 31.

North Dakota is using social media ads and media interviews to encourage homeowners to apply for loans. The state also mentioned the program on property tax statements sent to taxpayers in December.

If approved, the credit amount will appear as a credit on the applicant’s 2024 tax year property tax statement. Applicants can apply online by clicking here or by calling 701-328-7988 if they do not have internet access.

Lawmakers earmarked more than $100 million for the North Dakota property tax credit in the 2023-2025 state budget. The new tax credit is funded by the state, so it will not affect local tax revenues.

It’s important to note that these funds only apply to the 2024 tax year, but if the state wants to continue the deduction next year, it will need to set aside funds in the 2025-2027 budget.

Other tax relief options available

The North Dakota property tax credit is part of a larger property tax relief package adopted by the Legislature during the 2023 session. The package, costing more than $515 million and providing a $500 credit, expanded an existing property tax credit called the Homestead Credit for elderly and disabled homeowners.

Previously, the homestead deduction was only available to residents with annual incomes of $42,000 or less, but the limit has now been raised to $70,000. The new law also removed a provision disqualifying households with assets of more than $500,000.

Specifically, the program now has two tiers. People making less than $40,000 per year can claim up to 100% of their property tax bill, with a maximum limit of $9,000. People earning between $40,000 and $70,000 can claim up to 50% of their property tax bill, with a maximum limit of $4,500.

In addition to introducing the North Dakota property tax credit and expanding the homestead credit, the relief package also provides subsidies for low-income renters, disabled veterans and farm dwellers.