North Dakota minimum wage in 2026 (and 2027)

Tipped pay is higher here than the federal $2.13

Servers and bartenders do better here than under federal rules. North Dakota caps the tip credit at 33% of the minimum, which is $2.39, leaving a $4.86 cash wage, more than twice the federal $2.13. When the cash wage and tips together come in under $7.25 for the hours on the clock, the employer covers the shortfall.

Hours past 40 in a week earn time and a half, $10.875 on a $7.25 base. The federal $4.25 youth rate for new hires under 20 exists too, but state subminimum rules are not in the DOL table, so ask the North Dakota Department of Labor and Human Rights before relying on it.

$7.25 converted to weekly, monthly and annual pay

• 40 hours x $7.25 = $290.00 a week
• 2,080 hours x $7.25 = $15,080.00 a year
• $15,080 / 12 = $1,256.67 a month

North Dakota requires pay at least once a calendar month on paydays you set in advance, so a monthly check of $1,256.67 is legal, though most employers pay more often.

Lowest rate among its neighbors

Every state touching North Dakota pays more. South Dakota is at $11.85 and goes to $12.30 in 2027. Minnesota pays $11.41 and has set $11.87 for 2027. Montana pays $10.85 at larger businesses, rising to $11.20. For an employer in Fargo or Grand Forks recruiting against Moorhead or East Grand Forks, Minnesota, that $4.16 gap is the number applicants see. See every state's 2026 minimum wage side by side.

Payroll taxes on a North Dakota minimum wage worker

With a $46,600 wage base, Job Service taxes every dollar this worker earns. The 1.00% is the new non-construction rate on the positive-balance schedule. Workers' compensation must be bought from Workforce Safety and Insurance (WSI), the state fund, before you hire your first employee; private carriers cannot write it. The cost calculator can add those lines for other wages.

Setting up payroll in North Dakota

Final pay for a worker who quits or is fired is due on the next regular payday; if you discharge someone, it goes by certified mail to an address the employee designates. The North Dakota employer tax page lists registration with Job Service and the tax department. Monthly paydays are legal here, but most software runs any schedule you choose; Gusto lists its Simple tier at $49 monthly with $6 added for each employee (pricing page, October 16, 2026). Our payroll provider comparison covers the alternatives.