North Dakota state seal

North DakotaSales Tax

A Complete Guide For Businesses

State Rate
5%

Local Tax
yes

Phone
(701) 328-1246

General requirements

North Dakota is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the gross receipts of retailers
  • For wholesalers, items purchased for resale aren’t taxed

File returns online using the North Dakota Sales Tax Taxpayer Access Point.

Rates

The state sales tax rate is 5% general rate, 7% on the retail sale of alcoholic beverages, and 3% on the retail sale of certain equipment.

Additional local taxes are charged in some areas of the state, and total rates range from 5% to 8.5%.

How food is taxed

Sales of food or food products to be consumed off premises are exempt from the tax, while prepared foods, candy, and soft drinks are not exempt.

Nexus in North Dakota

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a physical place of business including a warehouse or distribution center
  • Having employees, independent contractors, or representatives working in the state
  • Leasing tangible personal property in the state
  • Engaging in the regular or systematic solicitation of sales in the state

Find more information about nexus in North Dakota.

Filing schedule

All returns are due the last day of the month following the reporting period. Your filing frequency will be assigned by the Tax Commissioner’s office upon registration.

A timely filing discount of 1.5% of taxes due, not to exceed $110, is available.

Registering to collect sales tax in North Dakota

To collect sales tax in North Dakota, you must obtain a Sales and Use Tax Permit. The sales tax application is available online.

Penalties

Penalties and interest for late filing are charged as follows:

  • 5% of the tax due or $5.00 per month, whichever is greater, up to a maximum of 25% of the tax due
  • Interest of 1% of the tax due will be assessed for each month after the first month that a return is late