North Dakota Sales Tax Guide (2026)

North Dakota levies a 5% state sales and use tax. City and county taxes of up to 3.75% bring combined rates to between 5% and 8.75%.

Combined rates in major North Dakota cities (2026):

To find the combined rate for a specific address, use our US sales tax calculator.

North Dakota economic nexus applies once your sales into the state exceed $100,000 in the current or prior calendar year. The transaction-count threshold has been removed, so the dollar amount is the only economic trigger. Physical presence creates nexus immediately.

North Dakota treats a marketplace facilitator without physical presence in the state as a retailer once its combined own and facilitated taxable sales exceed $100,000 in the current or preceding calendar year, and the facilitator must register within 60 days of meeting the threshold or by the following January 1, whichever is earlier. For each facilitated sale the facilitator collects and remits state and local sales or use tax and certifies to marketplace sellers that it will do so; a seller that accepts that certification in good faith may exclude the facilitated sales from its own gross-receipts return. Liability relief is available when the facilitator sought accurate seller information and an undercollection resulted from incorrect seller-supplied data, provided the two are not affiliated.[7]

North Dakota assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the last day of the month following the reporting period.

North Dakota exempts groceries and prescription drugs. SaaS and electronically delivered digital products such as music, video, and e-books are not subject to North Dakota sales tax, but off-the-shelf software delivered electronically is taxable.

North Dakota buyers give the seller a completed exemption certificate, such as the North Dakota Certificate of Resale or the multistate Streamlined certificate, to buy inventory for resale [4]. A blanket certificate stays valid until revoked or the buyer's circumstances change [4].

Late filing or payment carries a penalty of 5% of the tax due (or $5, whichever is greater), rising 5% for each additional month a return is not filed up to 25%, plus interest from the due date.

You protest a Notice of Determination by filing a written Notice of Protest within 30 days of the postmark, followed by a statement of grounds [5]. Unresolved protests proceed to an administrative hearing [5].

• [1] North Dakota Tax Commissioner — Sales and Use Tax (5% rate, economic nexus)

• [2] North Dakota Tax Commissioner — Computer Software and Digital Products Guideline (SaaS and digital not taxable)

• [3] North Dakota Tax Commissioner — Exemptions Guideline (food exempt)

• [4] North Dakota Tax Commissioner — Certificate of Resale

• [5] North Dakota Tax Commissioner — How to Protest an Assessment (30 days)

• [6] North Dakota Tax Commissioner — Taxpayer Access Point (registration)

• [7] North Dakota Century Code § 57-39.2-02.3 — Marketplace Facilitators

Verified July 2026 against North Dakota Office of State Tax Commissioner published guidance.

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• North Dakota Sales Tax Exemption: A Guide for Businesses to Save More