Fiduciary Tax is determined by the income, deductions, gains, and losses generated by a decedent’s estate or a trust. The fiduciary income tax return ensures income from these separate legal entities is accounted for and taxed, either at the entity level or passed through to beneficiaries. A fiduciary for a resident trust or estate must file a North Dakota fiduciary income tax return Form 38 – Fiduciary Income Tax Return if the fiduciary is required to file a federal fiduciary income tax return (Form 1041 – U.S. Income Tax Return for Estates and Trusts).
If you have questions regarding estate tax: Estate Tax
Tax Rate
The applicable tax rates for the 2024 tax year are shown below.
Taxable Income is Over | But not over | Tax Rate |
| $0 | $3,150 | 0.00% |
| $3,150 | $11,325 | 1.95% |
| $11,325 | 2.50% |
Filing a Return
A fiduciary for a resident trust or estate must file a North Dakota fiduciary income tax return (Form 38-Fiduciary Income Tax Return), if the fiduciary is required to file a Form 1041, U.S. Income Tax Return for Estates and Trusts.
A fiduciary for a nonresident trust or estate must file a North Dakota fiduciary income tax return (Form 38 – Fiduciary Income Tax Return) if:
- The fiduciary is required to file Form 1041 - U.S. Income Tax Return for Estates and Trusts, AND
- The estate or trust received income from North Dakota sources during the year.
The North Dakota fiduciary income tax return is due on April 15. If an extension of time to file the federal Form 1041 is received, the same extension of time to file the state Form 38 is automatically applied.
At times, a fiduciary for an estate or trust must pay estimated North Dakota income tax. To learn more about estimated income tax for estates and trusts, see Form 38-ES – Estimated Income Tax – Estates and Trusts.
How to File
For tax years 2022 and after, a partnership, S Corporation, trust, or other passthrough entity with 10 or more owners (or beneficiaries) must file its North Dakota income tax return and pay any tax due on it electronically. This requirement is due to law changes passed by the 2021 North Dakota Legislature.
To find tax forms for the current and previous tax years, visit our Forms Library where you can search by form name, tax type, tax year, and SFN.
For more information about electronic filing, see:
How to Amend
You must file an amended North Dakota tax return when an item on your original return was reported incorrectly or to report changes made to your federal income tax return, including changes made by the Internal Revenue Service.
Your amended return can be filed electronically using tax software, or on paper, by filling out Form 38 and marking the amended return box. Attach a copy of the amended federal return (if applicable).
Request an Extension
You may have extended time to file your North Dakota fiduciary income tax return by receiving a federal extension or a North Dakota extension.
Tax Relief
The following tax credits are available to estates or trusts:
Charitable contribution related credits:
- Contributions to a maternity home, child placing agency, or pregnancy help center credit
- Employer child care contribution credit
- Endowment fund credit
- Nonprofit private primary school contribution credit
- Nonprofit private high school contribution credit
- Nonprofit college contribution credit
Employment related credits:
- Apprentice employment credit
- Credit for wages paid to a mobilized employee
- Developmentally disabled/mentally ill employee credit
- Employer internship program credit
- Workforce recruitment credit
Investment related credits:
- Agricultural commodity processing facility investment credit
- Angel fund investor credit
- Automation equipment purchase credit
- Renaissance zone credits
- Seed capital investment credit
Other credits/incentives:
- Adoption credit
- Biodiesel/green diesel fuel blending credit
- Biodiesel/green diesel fuel sales equipment credit
- Credit for income tax paid to another state or local jurisdiction
- Research expense credit
Payment Options
Make a fiduciary income tax payment electronically to the Office of State Tax Commissioner by using ND TAP.
If you are unable to make pay electronically, you may pay by check or money order, made payable to North Dakota State Tax Commissioner.
- Complete and print the payment voucher on ND TAP and mail both to the Office of State Tax Commissioner.
Additional Resources
Composite Return
A nonresident beneficiary is eligible to be included in a composite filing if both of the following apply:
- The beneficiary’s only source of income within North Dakota is one or more passthrough entities. A passthrough entity includes a trust, partnership, S corporation, limited liability company treated like a partnership or S corporation, and any other similar entity.
- The beneficiary elects to be included in a composite filing. An election is indicated by the trust’s calculation and reporting of a tax amount for the beneficiary on Form 38, Schedule BI, Column 7. If the distributive share is a loss, the tax is zero.
The distributive share of North Dakota income included in a composite return is subject to tax even if it is under $1,000.
Grantor Trust
A grantor trust is required to file a North Dakota fiduciary income tax return (Form 38 - Fiduciary Income Tax Return) if the grantor is required to file a federal fiduciary income tax return (Form 1041 - U.S. Income Tax Return for Estates and Trusts).
If you are passing state income tax withholding through to the beneficiary from the grantor trust, the grantor trust must file a complete North Dakota fiduciary income tax return (Form 38) – including Schedule BI and North Dakota Schedule K-1 – to claim the withholding and pass it through to the beneficiary. For instructions, see Grantor Trust with North Dakota Withholding Reported to its FEIN.