North Dakota Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in North Dakota?

What is taxable in North Dakota?

How do you register to collect sales tax in North Dakota?

What is the economic nexus threshold for North Dakota?

How to register for sales tax in North Dakota

Before you can collect sales tax, you need to register with the North Dakota Office of State Tax Commissioner. Here is the step-by-step process.

1. Register online through the North Dakota Department of Revenue or tax agency website
2. Provide your FEIN or SSN, business entity type, and business location details
3. Registration is typically free (check for any state-specific fees)
4. North Dakota is a member of the Streamlined Sales Tax (SST) — you can also register at sstregister.org
5. You may need to register with local jurisdictions separately

How to collect sales tax in North Dakota

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in North Dakota.

1. Determine taxability of each product or service under North Dakota rules
2. Calculate the correct combined rate (state + local) based on the delivery destination
3. North Dakota uses destination-based sourcing for most transactions
4. Charge the correct rate at the point of sale and itemize on receipts and invoices
5. Accept North Dakota resale certificates from qualifying wholesale buyers
6. Keep records of all transactions and exemption certificates for at least 3 years

How to file and remit sales tax in North Dakota

Filing your sales tax return on time is critical to avoid penalties. North Dakota requires electronic filing for most businesses.

1. File electronically through the North Dakota tax agency online portal
2. Filing frequency is assigned based on your tax liability: monthly, quarterly, or annually
3. Returns are typically due on the 20th of the month following the reporting period
4. Report gross sales, exempt sales, and taxable sales
5. Pay electronically by the return due date
6. Retain all records for at least 3 years

What is exempt from North Dakota sales tax?

Not everything is subject to sales tax. North Dakota provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the North Dakota Office of State Tax Commissioner.

• •Sales for resale with a valid North Dakota resale certificate
• •Grocery food for home consumption
• •Prescription drugs and certain medical devices
• •Manufacturing machinery and equipment
• •Agricultural inputs including feed, seed, and fertilizer
• •Sales to federal, state, and local governments
• •Qualifying nonprofit organizations with a valid exemption certificate

What are the highest combined sales tax rates in North Dakota?

Because North Dakota allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major North Dakota cities.

What is use tax in North Dakota?

North Dakota use tax applies at the same rate as sales tax when you purchase taxable goods from out-of-state vendors who do not collect North Dakota sales tax. Businesses must report and pay use tax on their regular sales tax return. Common triggers include online purchases, out-of-state equipment, and supplies from non-collecting vendors.

Does North Dakota have marketplace facilitator rules?

North Dakota requires marketplace facilitators meeting the economic nexus threshold to collect and remit sales tax on behalf of third-party sellers. Major platforms including Amazon, eBay, Etsy, and Walmart Marketplace collect North Dakota sales tax on marketplace transactions. Sellers using marketplace facilitators are not required to collect on marketplace sales but remain responsible for direct sales.

What are the penalties for sales tax non-compliance in North Dakota?

North Dakota imposes penalties for late filing and late payment, typically 5-10% of the tax due per month (capped at 25%). Interest accrues on unpaid balances at a rate set annually. Failure to file returns can result in the state estimating your liability and potentially revoking your sales tax permit. Fraud or willful evasion can result in criminal penalties including fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: North Dakota Office of State Tax Commissioner.