What is the property tax rate in McKenzie County?

The combined effective property tax rate in McKenzie County, North Dakota is approximately 0.85%.

McKenzie County Property Tax Calculator (2026) — North Dakota Property Tax Almanac

Property Tax in McKenzie County, 2026

A calculator and field guide for Watford City-area homeowners — and for anyone considering a move to McKenzie County — including North Dakota's structurally distinctive 2-step calculation (Assessed Value = 50% of true-and-full value, Taxable Value = 9% of AV for residential = 4.5% effective AR), the HB 1176 of 2025 Primary Residence Credit (RAISED from $500 to $1,600/year for 2025-2027; eliminated property taxes entirely for ~50,000 ND households), the 12% Statewide Property Tax Credit (automatic, no application), the income-tested Homestead Property Tax Credit for 65+/disabled (HHI ≤ $40K = 100% reduction up to $9K TV), the Disabled Veterans Credit (up to 100% of taxes on first $200K T&F for 50%+ disabled vets), and the new 3% local property tax budget growth cap (with voter opt-out provision).

McKenzie County operates under North Dakota's distinctive 2-step assessment system: real property is assessed at 50% of true and full value, then taxable value = 9% × assessed value for residential (10% commercial). Net effect: residential taxable value = 4.5% of fair market value. McKenzie's consolidated mill levy produces typical effective rates around 0.85%. ND's $1,600 Primary Residence Credit (raised from $500 in 2024-2025 to $1,600 for 2026) and 12% statewide property tax credit (HB 1176 of 2023) are among the most generous state-paid relief programs in the United States.

How the bill is built

True and full value (= FMV) is assessed annually as of February 1 by the city/township assessor. Assessed value = 50% of T&F. Taxable value = 9% × assessed value (residential). Tax = taxable value × consolidated mill levy / 1000. Apply Homestead Credit (65+/disabled, income-tested) or Disabled Veterans Credit (50%+ rated) to taxable value. After tax computation, apply the 12% statewide credit (HB 1176 of 2023) and the $1,600 Primary Residence Credit (for 2026+). Bills are due January 1 of the year following assessment; first installment penalties begin March 1, with additional penalty dates May 1, July 1, and October 15.

The Primary Residence Credit (PRC) was massively expanded for 2026. Initially $500/year for 2024-2025, the PRC was raised to $1,600/year for the 2026 tax year (and beyond). Available to ANY homeowner who occupies their dwelling as a primary residence — no income limit, no age limit, no veteran requirement. Apply online at the ND Taxpayer Access Point (ND TAP) between January 1 and April 1. On a $300K Fargo home with ~$3,000 typical bill, the $1,600 PRC reduces the bill to ~$1,400 — a structural change that makes ND one of the most generous state-paid relief jurisdictions in the US.

The Disabled Veterans Credit is functionally a sliding-scale full exemption for high-disability vets. NDCC §57-02-08.8 provides a credit equal to the percentage of the veteran's VA disability rating times 100% of taxes on the first $200,000 of true and full value (or $9,000 of taxable value). A 100% disabled vet on a $200K home pays no property tax; a 50% disabled vet on the same home pays half. Stack with the $1,600 Primary Residence Credit and the 12% statewide credit for compounded benefit. Apply by April 1 with the local assessor or County Director of Tax Equalization.

2026 McKenzie County rate breakdown (consolidated mill levy per $1,000 of taxable value (residential taxable value = 9% × 50% × FMV = 4.5% of true and full value), Watford City district)

Taxing entity	Rate
Watford City Public Schools	90.0000
McKenzie County (general)	45.0000
City of Watford City	45.0000
Park District	12.0000
Combined total	192.0000

As of April 27, 2026 · From McKenzie County Tax Equalization Office.

Note: McKenzie County is the geographic center of the Bakken oil play — Watford City has been the most extreme example of US oil-boom growth in modern history. Population grew from ~1,700 (2010) to ~7,500 (2020), and McKenzie County's broader population grew from ~6,400 to ~15,000 over the same period. The county is geographically the largest in ND (2,743 sq mi) and contains the southern unit of Theodore Roosevelt National Park's North Unit. Long-term residents now coexist with substantial oil-and-gas industry workforce.

Note: McKenzie's combined mill levy of ~190 mills produces typical effective rates around 0.85% on full market value — among the lowest in ND. The dominant oil-and-gas commercial property tax base (active drilling, well operations, midstream pipelines, gas processing plants) carries an outsized share of the AV. McKenzie's per-capita commercial property tax revenue is among the highest in the United States; the county's general-fund coffers were so flush during the 2014 boom that infrastructure spending was a major political issue.

Note: McKenzie homeowners benefit from ND's state-paid relief stack. The county's substantial new-construction tax base from the boom supports school district expansion (Watford City built two new schools 2014-2018) without dramatic mill-rate increases. Watford City has been called "the fastest-growing micropolitan area in the United States" multiple times in the 2010s; long-term population has stabilized post-2016 oil-price moderation.

Deductions and credits for 2026

North Dakota's homeowner relief expanded substantially under HB 1158 of 2023 (Homestead Credit) and HB 1176 of 2023 (Primary Residence Credit + 12% statewide credit + Disabled Veterans Credit expansion). Five layered mechanisms now apply: the $1,600 Primary Residence Credit (state-paid, raised from $500 for 2026), the 12% Statewide Property Tax Credit (HB 1176, applied to all real property), the Homestead Property Tax Credit (income-tested for 65+/disabled), the Disabled Veterans Property Tax Credit (sliding scale to 100% on first $200K T&F), and the Renter's Refund (separate program for tenants).

Primary Residence Credit (NDCC §57-02-08.10)

State-paid credit of up to $1,600 per year for any homeowner who occupies their dwelling as a primary residence. Available regardless of age, income, or veteran status. Originally created at $500/year for tax years 2024-2025; raised to $1,600 for tax year 2026 and beyond. Apply online at the ND Taxpayer Access Point (ND TAP) between January 1 and April 1 of the tax year. Expanded by SB 2201 of 2025 to include property held in trusts, life estates, and contracts for deed. Among the most generous state-paid property tax relief programs in the United States.

12% Statewide Property Tax Credit (HB 1176 of 2023)

12% credit applied to all property taxes levied against real property and centrally-assessed property in North Dakota. Applies AUTOMATICALLY — no application required. Effectively reduces every ND property owner's bill by 12% before any other credits are applied. Combined with the $1,600 Primary Residence Credit, a homeowner with a $3,000 gross bill pays ~$3,000 × 88% − $1,600 = $1,040 net. The 12% credit is the most-recent of multiple ND legislative responses to home value appreciation and federal SALT cap pressures.

Homestead Property Tax Credit (NDCC §57-02-08.1, expanded by HB 1158 of 2023)

For homeowners 65+ OR permanently and totally disabled. Compressed to two income brackets effective 2024+: HHI ≤ $40,000 = 100% reduction up to $9,000 of taxable value; HHI $40,001-$70,000 = 50% reduction up to $4,500 of taxable value. Asset limit removed by HB 1158 of 2023 (previously $500K). Annual application required with local assessor or County Director of Tax Equalization. The expansion has driven substantial growth in qualifying applicants — many ND homeowners who were previously over the asset limit now qualify.

Disabled Veterans Property Tax Credit (NDCC §57-02-08.8)

For veterans with 50%+ service-connected disability rating. Credit equals the disability rating percentage applied to 100% of taxes on the first $200,000 of true and full value (or $9,000 of taxable value, equivalent). Examples: 100% disabled vet on $200K home pays $0 property tax; 80% disabled vet on $200K home pays 20%. Surviving spouses retain (with VA dependency and indemnity compensation). Apply by April 1 with local assessor; submit DD-214 + VA disability rating letter. Stacks with the $1,600 Primary Residence Credit and 12% statewide credit.

Appealing your assessment

True and full value assessments are determined annually as of February 1. The assessor must notify property owners when T&F value increases 10% or more AND $3,000 or more. City/township Boards of Equalization meet in April to review assessments; the County Board reviews within the first 10 days of June; the State Board of Equalization reviews in August. Property owners may appeal at any level. The 12% statewide credit (HB 1176 of 2023) is applied automatically and cannot be appealed; only the underlying T&F value or classification can be challenged. ND's relatively transparent assessment system (T&F = market value) makes appeals more straightforward than equalization-ratio states.

Cities and towns in McKenzie County

McKenzie County contains 6 incorporated municipalities, ranging from Watford City to the smallest village. Search volume for property tax is often city-specific, so here is the complete list — with population from the 2020 US Census, rounded to the nearest 100.

Data: US Census Bureau, 2020 Decennial Census. Populations rounded. Cities marked as "split" straddle a county border — the portion inside McKenzie County is subject to McKenzie County's tax rolls, while the portion outside is subject to the adjacent county's.

City or town	Type	Population (2020)
Watford City County seat	city	7,500
Mandaree	unincorporated	600
Alexander	city	280
Arnegard	city	130
Grassy Butte	unincorporated	50
Cartwright	unincorporated	40

About city-level property tax rates: The rate breakdown and calculator on this page reflect the Watford City tax district. Other cities in McKenzie County may pay into different school districts, city rates, and special districts — so their combined rates can differ, sometimes substantially. Always verify the specific rates for your address with the McKenzie County Tax Equalization Office before relying on any estimate.

Frequently asked questions

When are North Dakota property taxes due?

Real estate tax is due and payable to the County Treasurer on January 1 of the year following assessment. Penalty dates: March 1 (3% penalty on first installment), May 1 (additional 3%), July 1 (additional 3%), October 15 (additional 3% — total can reach 12% by year-end on unpaid amounts). Most homeowners pay through escrow via mortgage servicer. Mobile homes pay differently (in advance per a separate calendar).

How does the $1,600 Primary Residence Credit work?

The Primary Residence Credit (PRC, NDCC §57-02-08.10) is a state-paid credit of up to $1,600/year for any homeowner who owns and occupies their dwelling as a primary residence. NO income limit. NO age limit. NO veteran requirement. Originally created at $500/year for tax years 2024-2025; raised to $1,600 for tax year 2026 and beyond. Apply online at the ND Taxpayer Access Point (ND TAP) between January 1 and April 1 of the tax year. Among the most generous state-paid property tax credits in the United States.

How does North Dakota's 2-step assessment system work?

It's mathematically simple but structurally distinctive. True and full value (= market value) is assessed annually as of February 1. Assessed value = 50% of T&F. Taxable value = 9% × assessed value (residential) or 10% (commercial). The mill rate applies to taxable value. Net effect: residential taxable value = 4.5% of FMV. On a $300K home, taxable value = $13,500; with a typical 220-mill levy, gross tax = ~$2,970. After the 12% statewide credit and $1,600 Primary Residence Credit, net bill ≈ $1,015.

How does the Disabled Veterans Credit work?

For veterans with 50%+ service-connected disability rating (NDCC §57-02-08.8). Credit equals the disability rating percentage applied to 100% of taxes on the first $200,000 of true and full value (or $9,000 of taxable value). A 100% disabled veteran on a $200,000 ND home pays NO property tax — effectively a full exemption. An 80% disabled vet pays 20% of the bill on the first $200K of value. Apply by April 1 with the local assessor; submit DD-214 + VA disability rating letter. Stacks with the $1,600 Primary Residence Credit and 12% statewide credit.

What's the Bakken oil boom's effect on western ND property tax?

The Bakken oil boom (2008-2014) drove unprecedented property value appreciation in Williams, McKenzie, Mountrail, and Dunn counties — Williston (Williams County) home values rose 4-5x in some years. Oil-and-gas commercial property carries substantial AV, allowing residential mill rates to stay relatively low despite the rapid growth. The 2014-2016 oil price collapse moderated the boom but commercial oil-and-gas property remains the dominant tax base. ND's $1,600 Primary Residence Credit and 12% statewide credit benefit Bakken-region homeowners disproportionately given the higher home values.

About McKenzie County

Beyond the property tax — a few things you might not know about the place.

Weird fact

At the 2014 Bakken peak, McKenzie County had the highest property crime rate in the United States — driven by the influx of transient "man camp" workers and the substantial per-capita wealth from oil-and-gas employment. The county sheriff's department went from 9 deputies (2010) to 30+ (2014). The crime rate normalized after 2016 as the workforce stabilized and "man camps" closed; today McKenzie's crime rate is comparable to other small-population ND counties.

Hometown hero

Sakakawea

Lemhi Shoshone interpreter and guide for the 1804-1806 Lewis and Clark Expedition. Born ~1788. The Knife River Indian Villages National Historic Site (immediately east of McKenzie County in Mercer County) preserves the Mandan-Hidatsa villages where Sakakawea lived in 1800-1804 and where Lewis and Clark met her in October 1804.

Biggest annual event

McKenzie County Fair

Annual late-July fair in Watford City — features livestock shows, the celebrated McKenzie County Junior Livestock Auction, demolition derby, and grandstand harness racing. Substantially expanded post-2014 to accommodate the boom-era population growth; the McKenzie County Fairgrounds were rebuilt in 2017.

Property Tax in McKenzie County, 2026