BISMARCK, N.D. – As property tax statements arrive in North Dakotans’ mailboxes this month, Gov. Kelly Armstrong joined lawmakers and state Tax Commissioner Brian Kroshus at the Capitol today to highlight the significant relief being provided by the $1,600 Primary Residence Credit (PRC) approved last spring, while also emphasizing the need to grow the credit in future legislative sessions to eliminate property taxes for even more households.
Armstrong and legislators worked together last session to more than triple the PRC from $500 to $1,600 per year in House Bill 1176, introduced by Rep. Mike Nathe of Bismarck. When they were pushing for the package, the best estimate was it would eliminate property taxes for 25% of households eligible for the PRC. Recent data released by Kroshus shows the increased credit has wiped out property taxes for 30% of eligible households, or roughly 50,000 households.
“What this shows is meaningful, tangible tax relief,” Armstrong said. “It works, and we know we can build on it to provide even more relief and get property taxes to zero for the vast majority of North Dakota homeowners.”
By comparison, in 2024 the previous $500 credit left 16,000 households, or about 10%, owing no residual property tax. The 50,000 households represent an increase of 34,000 additional households not having to pay property taxes – roughly the same number of households as the entire city of Bismarck, Armstrong noted.
In addition to the 50,000, another 95,000 households will pay smaller property tax bills after the $1,600 credit is applied.
A random sample of 50 property tax statements from 15 counties shows an average reduction in property taxes of 46%, including four households paying no property tax. Even without those four homes, the average reduction was 41%. The statements were either randomly selected online by the state Office of Management and Budget (OMB) or submitted to the North Dakota Association of Counties at OMB’s request. More comprehensive data on the credit’s impact will be available next spring.
Kroshus noted the Office of State Tax Commissioner received 135,000 applications for the PRC in 2024, the first year of the program, and 145,000 applications in 2025, increasing the participation rate from 92% to 95% of eligible homeowners. The goal for their 2026 campaign is to ensure all eligible homeowners apply for and receive the credit, he said.
“Housing-related expenses represent, on average, about one-third of total household budgets, significantly impacting all citizens and especially those on fixed incomes, including young families and our seniors,” Kroshus said. “This year’s credit amount of $1,600 is both timely and meaningful to so many North Dakota families.”
A dedicated stream of earnings from the state’s $13 billion Legacy Fund is paying for the PRC, estimated to save homeowners over $400 million in the 2025 and 2026 tax years. The earnings stream will grow as the Legacy Fund grows, allowing the tax credit to be increased in future sessions, starting in 2027. The Legacy Fund receives 30% of the revenue derived from taxes on oil and gas production and extraction in North Dakota.
“Thanks to the oil industry and the Legacy Fund earnings, we are able to provide long-term, sustainable property tax relief to the homeowners of North Dakota,” Nathe said. “I’m looking forward to providing even more property tax relief in the future.”
As part of the property tax relief and reform package approved last spring, lawmakers also capped increases in local property tax budgets at 3% annually, with the ability to bank unused percentages for up to five years. Because local budgets were already set for 2025, the full impact of that change will first appear next year on 2026 property tax statements.
“The legislature worked hard to provide true property tax reform through the 3% cap and a $1,600 property tax credit on primary residences in the state. This was done using Legacy Fund earnings, which will provide this relief for future generations,” House Majority Leader Mike Lefor said.
“We will leverage the sustainability of this primary residence tax relief in other areas of our economy. As an example, we are permanently reducing the costs of home ownership and expect this permanent tax relief to encourage home ownership in all of our communities,” Senate Majority Leader David Hogue said.
The application period for this coming year’s PRC campaign begins Jan. 1 and will remain open through April 1. Eligibility requirements include being a resident of the state and living in a home that serves as a primary residence. There are no age or income restrictions, and there is a limit of one credit per household.
As in the past two years, the application process will be online only. Kroshus said those without computer access can apply by calling the Tax Commissioner’s Office directly and speaking with a property tax specialist. He encouraged all eligible participants to apply as soon as possible once the application window opens Jan. 1.
To apply, go to tax.nd.gov/prc or call the Office of State Tax Commissioner at (701) 328-7988 or toll-free at 1-877-649-0112 to connect with a property tax specialist.