BISMARCK, N.D. – North Dakota’s Primary Residence Credit (PRC) has helped many households across the state since the North Dakota legislature increased it to $1,600.
When leaders were pushing for the package, the best estimate was it would eliminate property taxes for 25 percent of households eligible for the PRC. Recent data released by Tax Commissioner Brian Kroshus shows the increased credit has wiped out property taxes for 30 percent of eligible households, or roughly 50,000 households.
“What this shows is meaningful, tangible tax relief,” North Dakota Governor Kelly 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.”
In 2024, the credit was $500. That left 16,000 households, or about 10%, owing no residual property tax.
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.”
Legislative leaders spoke out regarding the work done to get the PRC to this point.
“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.
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.
“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.
