North Dakota: Sales Tax Handbook
North Dakota Sales Tax Rate
| State Sales Tax | Local Sales Tax Range | Average Local Tax | Average Combined Tax | Max Combined Tax |
|---|---|---|---|---|
| 5% | 0% - 4.2% | 1.012% | 5.992% | 9.2% |
2024 North Dakota Sales Tax Handbook
North Dakota Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
North Dakota's Sales Tax By The Numbers:
North Dakota has a lower-than-average sales tax, including when local sales taxes from North Dakota's 214 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 37th highest by combined state + local sales tax
Ranked 4th highest by per capita revenue from state + local sales taxes ($1,850 per capita)
Rankings by State Sales Tax Only:
Ranked 12th highest by state sales tax rate
Ranked 2nd highest by per capita revenue from the statewide sales tax ($1,781 per capita)
Printable PDF North Dakota Sales Tax Datasheet
North Dakota has a statewide sales tax rate of 5%, which has been in place since 1935.
Municipal governments in North Dakota are also allowed to collect a local-option sales tax that ranges from 0% to 4.2% across the state, with an average local tax of 1.012% (for a total of 5.992% when combined with the state sales tax). The maximum local tax rate allowed by North Dakota law is 3%. You can lookup North Dakota city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in North Dakota. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the North Dakota Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in North Dakota?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how North Dakota taxes five types of commonly-exempted goods:
Clothing
5%
Groceries
EXEMPT
Prepared Food
5%
Prescription Drugs
5%
OTC Drugs
5%
For more details on what types of goods are specifically exempt from the North Dakota sales tax see North Dakota sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in North Dakota? Taxation of vehicle purchases in particular are discussed in the page about North Dakota's sales tax on cars.
Are services subject to sales tax in North Dakota?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In North Dakota, specified services are taxable.
About the North Dakota Sales Tax
The state of North Dakota has slightly unusual sales tax rate. Although there is an official base sales tax rate, the state sales tax rate will differ depending on location, as there are some municipalities which belong to home rule charters. This allows them to levy their own local taxes, which will vary significantly depending on which jurisdiction you are in. These local tax rates would be in addition to the state rate.
Is the North Dakota Sales Tax Destination-Based or Origin-Based?
North Dakota is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within North Dakota from a North Dakota vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is North Dakota a Streamlined Sales Tax State?
North Dakota is a member of the Streamlined Sales and Use Tax Agreement, which means that the North Dakota Office of State Tax Commissioner has taken significant steps to simplify North Dakota's sales tax rules and administration process.
Contact the North Dakota Office of State Tax Commissioner
The North Dakota Sales Tax is administered by the North Dakota Office of State Tax Commissioner. You can learn more by visiting the sales tax information website at www.nd.gov.
Phone numbers for the Sales Tax division of the Office of State Tax Commissioner are as follows:
- Local Phone: (701) 328-1246
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your North Dakota sales taxes, we recommend the following books:
Small Business Taxes For Dummies
This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.
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A Guide to Sales and Use Tax
This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.
Buy on AmazonSimplify North Dakota sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
North Dakota Sales Tax Rates by Zip Code:
Need an updated list of North Dakota sales tax rates for your business? Download our North Dakota sales tax database!