North Dakota Sales Tax Guide 2025: Insights for Ecommerce

Are you navigating the complexities of North Dakota’s taxation system? Whether you’re a resident, business owner, or planning a move to the bison state, understanding the state’s tax requirements and how to comply with them can save you time and money. This guide will walk you through everything you need to know about North Dakota’s taxes, including sales tax, use tax, exemptions, and more.

North Dakota Sales Tax

North Dakota sales tax law, enacted in 1935, imposes a state sales tax of 5% on most goods and services, with local rates varying by city and county. Sales tax in North Dakota is complemented by a sales and use tax to ensure compliance on out-of-state purchases.

North Dakota Sales Tax Rate

North Dakota's base sales tax rate is 5.0%, with additional local rates varying across counties and cities, resulting in a total tax range of 5.0% to 8.5%.

Jurisdiction	Sales Tax Rate
State Tax	5.00%
Local Tax	0%–3.50%
Special Tax	0.00%
Combined Tax	5.00%–8.50%

For more information on city-based tax rates in North Dakota check out Kintsugi’s City Level Sales Tax Guides.

North Dakota Sales Tax Calculator

Imagine you are a business owner in Bismarck, North Dakota, selling a piece of furniture for $1,000. The state tax rate is 5%, and Bismarck imposes an additional 2% local tax, resulting in a total sales tax rate of 7%.

Step 1: Understand the Total Sales Tax Rate

To calculate the total sales tax, you first need to combine the state tax rate with the local tax rate:

Total Sales Tax Rate = State Tax Rate + Local Tax Rate

Total Sales Tax Rate = 5% + 2% = 7%

Step 2: Calculate the Sales Tax

Use the formula below to calculate the sales tax:

Sales Tax = Item Price × Total Sales Tax Rate

Sales Tax = 1,000 × 0.07 = 70

The sales tax on the $1,000 item is $70.

Step 3: Calculate the Total Price

Add the sales tax to the original price of the item to determine the total amount the customer will pay:

Total Price = Item Price + Sales Tax

Total Price = 1,000 + 70 = 1,070

Final Answer:

The total price of the furniture, including sales tax, is $1,070.

Additional Considerations:

• Different Local Tax Rates: If you sell items to customers in different North Dakota cities or counties, you need to account for the varying local tax rates. Use the North Dakota tax rate lookup tool to determine the correct rate.
• Exemptions: Some items, like prescription drugs, may be exempt from sales tax in North Dakota, and a resale certificate can be used for purchases intended for resale without tax. Ensure you understand which goods or services qualify for exemptions.
• Remote Sales: For online sales to North Dakota customers, businesses must also collect tax based on the buyer's location if they meet the state’s economic nexus threshold (over $100,000 in sales or 200 transactions annually).

By following these steps, your business can accurately calculate sales tax and remain compliant with North Dakota tax regulations.

FAQ for Sales Tax on North Dakota

What is the Sales Tax Rate in North Dakota?

The base sales tax rate in North Dakota is 5%, with local tax rates ranging from 0% to 3.5%, resulting in a total range of 5% to 8.5%.

How do you Calculate North Dakota Sales Tax?

Multiply the item's price by the combined state and local tax rate. For example, for a 7% total tax rate on a $100 item, the sales tax would be $100 × 0.07 = $7.

How to Calculate Sales Tax in North Dakota?

Identify the applicable state rate of 5% and local tax rate, add them together, factor in any shipping charges, and multiply the sum by the item's price to determine the sales tax amount.

Sales tax Nexus in North Dakota​

North Dakota’s base sales tax rate is 5%. Businesses must complete a sales tax registration form and obtain a seller's permit when they meet specific economic or physical nexus thresholds.

Effective Date	Threshold	Includable Sales (Gross, Retail, or Taxable)	When You Need to Register
October 1, 2018	$100,000 in Taxable sales.	Taxable Sales	Upon exceeding the threshold in the following calendar year or 60 days after
Ongoing	Any physical presence in North Dakota	Retail and Taxable Sales	Immediately upon establishing a physical presence (e.g., office, employees, inventory).

FAQ on Sales Tax Nexus in North Dakota

What is Nexus in North Dakota Sales Tax?

Nexus in North Dakota sales tax refers to a business’s connection to the state, such as physical presence or economic activity, requiring the business to collect and remit sales tax.

What Does Nexus Mean Sales Tax North Dakota?

In North Dakota, sales tax nexus means a business must collect and remit sales tax if it has a physical presence or exceeds $100,000 in taxable sales annually.

North Dakota Sales Tax Exemptions​

North Dakota offers a variety of sales tax exemptions to support specific industries, organizations, and individuals. These exemptions apply to items like agricultural equipment, medical supplies, and nonprofit activities that meet the state’s qualifications.

Category	Exemption Description
Agricultural Equipment	Farm machinery and irrigation equipment used exclusively for agricultural purposes are exempt.
Manufacturing Equipment	Equipment used directly in manufacturing or processing is exempt from sales tax.
Medical Supplies	Prescription medications, prosthetic devices, and certain medical equipment are exempt.
Nonprofit Organizations	Qualified nonprofits may claim exemptions for purchases related to their exempt activities.
Government Entities	Purchases made by federal, state, and local government agencies are exempt.
Educational Institutions	School supplies and equipment purchased by qualifying educational institutions are exempt.
Energy Equipment	Wind turbines and solar power systems for renewable energy generation are exempt.

FAQ on Sales Tax Exemptions in North Dakota

How can I Apply for a North Dakota State Tax-exempt Certificate?

To apply for a tax-exempt certificate in North Dakota, complete and submit the Sales and Use Tax Certificate of Exemption (Form SFN 21950) available on the North Dakota Office of State Tax Commissioner’s website. Include documentation that supports your eligibility, such as nonprofit status or agricultural use documentation.

What Items Qualify for North Dakota Sales Tax Exemption?

Exempt items in North Dakota include agricultural machinery, prescription medications, prosthetic devices, and equipment used in manufacturing or renewable energy production. Purchases made by nonprofits and government entities for qualifying purposes are also tax-exempt.

What is North Dakota SAAS Sales Tax?

North Dakota considers software as a service (SaaS) to be non-taxable, as it does not fall under the definition of tangible personal property or taxable services under state law.

Does North Dakota Have Sales Tax on Clothing?

No, North Dakota does not impose sales tax on most clothing items. However, specialty or protective clothing may be subject to tax depending on its use.

North Dakota Sales Tax Filing

Sales tax returns in North Dakota, including those adhering to the streamlined sales tax guidelines, are filed online through the Taxpayer Access Point (TAP). Businesses must report total gross sales, exempt sales, and the amount of tax collected within their assigned filing period.

How do I Apply for North Dakota Sales Tax Registration?

Registering for sales tax in North Dakota is essential for businesses that sell taxable goods or services or meet the economic nexus threshold. The North Dakota Taxpayer Access Point (ND TAP) provides a convenient way to complete the registration online.

1. Visit the ND TAP Website: Go to the North Dakota Taxpayer Access Point (ND TAP). Click on the option to “Sign Up for ND TAP.”
2. Create an ND TAP Account: Fill out the registration form with your personal or business information, including your name, email address, and business name. Set up a username and password for your ND TAP account.
3. Log In to Your Account: After creating your account, log in to ND TAP using your newly created credentials. This will take you to the dashboard, where you can manage all your tax registrations and filings.
4. Select Sales and Use Tax Registration: From the dashboard, choose the option to register for a Sales and Use Tax Permit. Click “Apply for a New Sales Tax Permit” to begin the application process.
5. Complete the Registration Application:
   • Business name and legal structure (e.g., sole proprietorship, LLC)
   • Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
   • Business location and mailing address
   • Type of taxable goods or services sold
   • Start date for taxable activities in North Dakota.
6. Review and Submit the Application: Double-check the information entered for accuracy. Submit the application electronically through the ND TAP system.
7. Receive Your Sales Tax Permit: Once the application is reviewed and approved, you’ll receive your North Dakota Sales Tax Permit. This permit authorizes you to collect and remit sales tax for taxable transactions in the state.
8. Start Collecting and Remitting Sales Tax: Begin collecting sales tax on all taxable goods or services you sell. Use ND TAP to file your sales tax returns and make payments by the assigned due dates.

What are North Dakota Filing Requirements?

Filing requirements depend on your sales volume. High-volume businesses file monthly, medium-volume file quarterly, and low-volume file annually. Filing electronically via TAP is mandatory for most businesses.

What does North Dakota Sales Tax Apply To?

North Dakota sales tax applies to tangible personal property, taxable services, and prepared food. Exemptions apply to specific items, such as prescription medications and agricultural equipment.

How do I Get a Sales Tax Permit in North Dakota?

To get a sales tax permit, register your business through the Taxpayer Access Point (TAP) by completing the online application or filing a paper form. You’ll receive a permit once your application is approved.

How to File Sales Tax in North Dakota?

File your sales tax return using the TAP system. Enter your total gross sales, taxable sales, exemptions, and the tax amount collected, then submit payment electronically by the due date.

North Dakota Sales Tax Due Date​

North Dakota sales tax is generally due on the 20th of the month following the reporting period. Filing frequency depends on your assigned schedule.

Filing Frequency	Due Date
Monthly	20th of the following month
Quarterly	20th of the month following the quarter's end
Annually	January 20th of the following year

What Day is North Dakota Sales Tax Due?

North Dakota sales tax is due on the 20th of the month following the reporting period, ensuring timely remittance for all filing frequencies.

For More Information

For more information on how to file your sales tax, visit the North Dakota Sales Tax Revenue Service website.