North Dakota Sales Tax Calculator 2026

North Dakota Sales Tax Rate Quick Facts

North Dakota has a 5.00% state sales tax rate, and the average combined state and local sales tax rate is about 7.00%. North Dakota is a state-plus-local sales tax state, so the final rate can depend on the city, county, delivery location, local tax cap, product category, and whether the sale involves groceries, prepared food, alcohol, software, lodging, rental vehicles, or remote sellers.

How to Use the North Dakota Sales Tax Calculator

Enter the taxable purchase amount, then use the correct combined state and local rate. For a quick statewide estimate, use about 7.00%. For more accuracy, use the exact city/county rate from the North Dakota Sales and Use Tax Rate Locator. North Dakota's state rate is 5.00%, but cities and counties can add local sales and use taxes.

For Fargo, a common combined rate is 7.75%. For Bismarck, a common combined rate is about 8.00%. For Grand Forks, a common combined rate is 7.25%. For Minot, a common combined rate is about 7.50%. For West Fargo, a common combined rate is about 8.00%. Always verify the exact rate before business use because local rates, boundaries, and maximum-tax rules can change.

For groceries, do not automatically apply the sales tax rate. Food and food products for human consumption are generally exempt. Prepared food, restaurant meals, candy, chewing gum, certain low-fruit drinks, vending-machine food, alcohol, tobacco, and some special categories are taxable.

How North Dakota Sales Tax Works

North Dakota has a statewide sales tax rate of 5.00% on most taxable retail sales. The tax is paid by the purchaser and collected by the seller. North Dakota use tax is the counterpart to sales tax and applies when taxable tangible personal property is brought, shipped, stored, used, or consumed in North Dakota and sufficient sales tax was not collected.

The final rate is often higher than 5.00% because cities and counties may impose local sales and use taxes. These local taxes are generally administered by the North Dakota Office of State Tax Commissioner. Local rates can apply by city, county, or local jurisdiction, and some cities are also inside counties that impose county tax.

North Dakota also has special local taxes that are separate from ordinary sales/use tax. Cities and counties may impose local lodging taxes, lodging and restaurant taxes, and motor vehicle rental taxes. These special taxes are not always included in a normal sales tax rate lookup, so hotel, restaurant, rental car, alcohol, and tourism-style receipts may need separate review.

North Dakota also has special gross receipts tax rates. Alcohol is taxed at 7.00%. New farm machinery used exclusively for agricultural production is taxed at 3.00%. New mobile homes are taxed at 3.00%. Motor vehicles are generally handled under motor vehicle excise tax rather than ordinary retail sales tax.

For consumers, the practical rule is: use the combined local rate for most taxable purchases, but check whether the item is exempt or special-rate. For businesses, the practical rule is: verify the delivery location, local jurisdiction, local maximum-tax cap, taxability category, exemption certificate, remote seller threshold, and marketplace treatment before collecting or filing.

North Dakota Sales Tax Formula

Use the first formula when you know the taxable price and want to calculate North Dakota sales tax. Use the second formula when you want the final checkout total after North Dakota sales tax. Use the reverse formula when a North Dakota receipt already includes sales tax and you need to separate the original pre-tax price from the tax amount.

For ordinary taxable purchases, use the combined state and local rate. For food and food products, tax may be $0. For alcohol, use 7.00%. For new qualifying farm machinery and new mobile homes, use 3.00%. For motor vehicles, check motor vehicle excise tax rules.

North Dakota Sales Tax Examples

Major North Dakota City Sales Tax Rates

Below are approximate combined sales tax rates (state + local) for major municipalities in North Dakota:

Before deployment, verify every city rate with the North Dakota Sales and Use Tax Rate Locator. Local rates and boundaries can change quarterly, and special lodging, restaurant, alcohol, and motor vehicle rental taxes are not always included in the general rate lookup.

Why Sales Tax Varies in North Dakota

North Dakota sales tax varies because the state rate is only one part of the final rate. The statewide sales tax rate is 5.00%, but cities and counties can add local sales and use taxes. This is why Fargo, Bismarck, Grand Forks, Minot, West Fargo, Williston, Dickinson, Mandan, Jamestown, and Wahpeton do not all use the same combined rate. Some cities are inside counties that also impose county tax, so the total rate can include state, city, and county layers.

North Dakota also has local maximum-tax and refund-cap rules in many jurisdictions. In some cities or counties, local tax may apply only up to a maximum amount per sale. Customers may be able to request a refund of local tax paid above the local maximum. This is a major North Dakota-specific detail that basic sales tax calculators often miss.

What Is Taxable in North Dakota?

Online Purchases and Remote Sellers in North Dakota

Online purchases delivered into North Dakota may be subject to North Dakota state and local sales or use tax. If the seller collects North Dakota tax, it should collect the 5.00% state rate plus applicable local city or county tax based on the North Dakota delivery location.

Remote sellers with no physical presence in North Dakota must collect state and local sales tax when taxable sales into North Dakota exceed $100,000 in the current or previous calendar year. Once the threshold is exceeded, the seller must obtain a permit and begin collecting tax on sales delivered during the following calendar year or 60 days after meeting the threshold, whichever is earlier.

Marketplace facilitators must collect North Dakota state and local sales/use taxes on taxable marketplace sales when they have physical nexus or more than $100,000 in taxable North Dakota sales in the current or prior calendar year.

North Dakota Food and Prepared Food Notes

North Dakota food tax rules are important because food and food products are generally exempt, but prepared food is taxable. Food and food products for human consumption are exempt from sales tax. Examples include eggs, bread, milk, and many normal grocery items. Food purchased with USDA food coupons, food stamps, or WIC vouchers is also exempt, even if the item would otherwise be taxable.

Prepared food is not exempt. Prepared food includes food sold heated, food heated by the seller, two or more food ingredients mixed or combined by the seller for sale as one item, or food sold with eating utensils provided by the seller. This means restaurant meals, hot food, catered food, deli meals, ready-to-eat food, many convenience-store food items, and food sold with utensils can be taxable.

North Dakota Software and Digital Product Notes

North Dakota has a useful software/digital distinction. Digital products transferred electronically are generally exempt from sales tax. This includes specified digital products such as digital audio-visual works, digital audio works, and digital books when the purchaser receives the product without tangible storage media.

However, the digital-products exemption does not apply to prewritten computer software. Commercial off-the-shelf software is taxable. Custom software is generally exempt. SaaS and cloud software should be reviewed carefully based on whether the transaction is taxable prewritten software, custom software, a service, or a bundled transaction.

North Dakota Local Maximum Tax and Refund Cap Notes

North Dakota has a local maximum-tax feature that makes it different from many states. Many local sales tax ordinances include a maximum tax amount per sale. If a customer pays more local tax than the maximum amount due to a city or county, the customer may be able to request a refund of the local tax paid above the cap.

This does not usually affect small purchases. It matters more for higher-dollar transactions, equipment purchases, furniture, appliances, business purchases, and taxable items where the local tax cap may be reached.

Common North Dakota Sales Tax Mistakes

• Using only the 5.00% state rate and ignoring city/county local taxes
• Assuming Fargo, Bismarck, Grand Forks, Minot, and West Fargo use the same rate
• Ignoring county tax when a city is inside a taxing county
• Forgetting that local rates and boundaries can change quarterly
• Forgetting local maximum-tax and refund-cap rules
• Treating groceries and prepared food the same
• Taxing exempt food and food products incorrectly
• Exempting restaurant meals, hot food, candy, chewing gum, vending food, tobacco, or alcohol incorrectly
• Treating electronically transferred digital products and prewritten software the same
• Treating SaaS as automatically exempt or automatically taxable without reviewing the transaction
• Ignoring the 7.00% alcohol gross receipts tax
• Applying ordinary sales tax rules to motor vehicles instead of motor vehicle excise tax
• Ignoring local lodging, restaurant, and motor vehicle rental taxes
• Missing the $100,000 remote seller and marketplace facilitator threshold

North Dakota Sales Tax for Businesses

Businesses selling taxable goods, taxable services, lodging accommodations, prepared food, prewritten software, alcohol, farm machinery, mobile homes, or other taxable items in North Dakota may need to obtain a North Dakota sales and use tax permit, collect tax, file returns, and remit tax.

The first issue is the rate. North Dakota's state rate is 5.00%, but businesses must add applicable local city and county rates. Use the North Dakota Sales and Use Tax Rate Locator and the Local Taxes by Location Guideline for the current effective period.

The second issue is the transaction category. A seller should know whether the sale is ordinary tangible personal property, exempt food, taxable prepared food, taxable alcohol, exempt digital product, taxable prewritten software, custom software, taxable lodging, motor vehicle excise tax, new farm machinery, new mobile home, resale transaction, or exempt organization purchase.

The third issue is local maximum tax. Some local jurisdictions have maximum local tax amounts per sale. Businesses should understand whether a local cap applies and how refund requests work.

The fourth issue is remote seller and marketplace treatment. Remote sellers must monitor the $100,000 taxable North Dakota sales threshold. Marketplace facilitators must collect when required and certify collection responsibility to marketplace sellers. Marketplace sellers should verify whether direct sales outside the marketplace create separate registration duties.

This calculator is useful for estimates, but businesses should verify exact obligations through the North Dakota Office of State Tax Commissioner, ND TAP, local rate locator, local taxes by location guideline, taxability guidelines, Streamlined Sales Tax resources, and a qualified tax professional.

Official North Dakota Sales Tax Sources

• North Dakota Office of State Tax Commissioner — Sales and Use Tax
• North Dakota Sales and Use Tax Rate Locator
• North Dakota Local Taxes by Location Guideline
• North Dakota City and County Local Tax Rate Changes
• North Dakota Sales Tax Exemptions Guideline
• North Dakota Computers Sales Tax Guideline
• North Dakota Marketplace Facilitator Guidance
• ND TAP
• Streamlined Sales Tax — North Dakota State Guidance
• Tax Foundation — State and Local Sales Tax Rates

Last reviewed: June 2026. Rates and rules can change. Verify with the North Dakota Office of State Tax Commissioner before filing, remitting, or making compliance decisions.