# North Dakota Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/north-dakota
Published: September 22, 2026

North Dakota's 5% state rate reaches 5%–8.75% combined, and SaaS is exempt. Remote sellers trigger nexus at $100,000.

- **SaaS:** Exempt
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Exempt

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

North Dakota's state sales tax rate is 5%, with local taxes bringing combined rates up to about 8.75% [1]. You have economic nexus once sales into North Dakota exceed $100,000 in the current or prior calendar year, with no transaction-count trigger [1]. SaaS and electronically delivered digital products are not taxable, though downloaded off-the-shelf software is; groceries are exempt and clothing is taxable [2][3]. Protest an assessment within 30 days [5].

## Taxability Snapshot

## Sales Tax Rates

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%.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 5.00% | Statewide |
| Local (city + county) | 0%–3.75% | Varies by location |
| Combined | 5.00%–8.75% | Varies by location |

Combined rates in major North Dakota cities (2026):

| City | Combined rate |
| --- | --- |
| Fargo | 7.75% |
| Minot | 7.50% |
| Grand Forks | 7.25% |
| Bismarck | 8.00% |
| West Fargo | 8.00% |

To find the combined rate for a specific address, use our [US sales tax calculator](/us-sales-tax-calculator).

## Registration or Nexus Threshold

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.

## Marketplace Facilitator Law

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]

## Filing Frequency & Deadlines

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.

#### Exemptions

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.

## Resale & Exemption Certificates

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].

## Penalties

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.

## Audits & Appeals

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].

## Sources

- [1] [North Dakota Tax Commissioner — Sales and Use Tax (5% rate, economic nexus)](https://www.tax.nd.gov/sales-and-use-tax)

- [2] [North Dakota Tax Commissioner — Computer Software and Digital Products Guideline (SaaS and digital not taxable)](https://www.tax.nd.gov/sites/www/files/documents/guidelines/business/sales-use/gl-21825-1.pdf)

- [3] [North Dakota Tax Commissioner — Exemptions Guideline (food exempt)](https://www.tax.nd.gov/sites/www/files/documents/guidelines/business/sales-use/guideline-exemptions.pdf)

- [4] [North Dakota Tax Commissioner — Certificate of Resale](https://www.tax.nd.gov/sites/www/files/documents/forms/business/sales-use/resale-cert1.pdf)

- [5] [North Dakota Tax Commissioner — How to Protest an Assessment (30 days)](https://www.tax.nd.gov/how-protest-assessment-or-refund-denial)

- [6] [North Dakota Tax Commissioner — Taxpayer Access Point (registration)](https://tap.tax.nd.gov/)

- [7] [North Dakota Century Code § 57-39.2-02.3 — Marketplace Facilitators](https://ndlegis.gov/cencode/t57c39-2.pdf#nameddest=57-39p2-02p3)

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

## Frequently Asked Questions

### What is the North Dakota sales tax rate in 2026?

5% state plus up to 3.75% local, for combined rates between 5% and 8.75%; Fargo is 7.75%.

### What is North Dakota's economic nexus threshold?

$100,000 in sales into North Dakota in the current or prior calendar year. The transaction-count test has been removed.

### Is SaaS taxable in North Dakota?

No. North Dakota does not tax SaaS, though off-the-shelf software delivered electronically is taxable.

### Are groceries taxed in North Dakota?

No. Groceries and prescription drugs are exempt from North Dakota sales tax.

### When are North Dakota sales tax returns due?

The last day of the month following the reporting period.

### What is the penalty for late North Dakota sales tax?

5% of the tax due (or $5, whichever is greater), plus 5% for each additional month a return is late up to 25%, plus interest from the due date.

## Related Reading

- [Does North Dakota Have Sales Tax on Clothing? Key Information for Businesses](/blog/does-north-dakota-have-sales-tax-on-clothing-businesses-guide)

- [North Dakota Sales Tax Exemption: A Guide for Businesses to Save More](/blog/north-dakota-sales-tax-exemption-guide)

## US Sales Tax Calculator