North Dakota’s state sales tax rate is 5.00% for most retail sales, but many cities and some counties layer their own taxes on top. This pushes combined rates as high as 8.75% in some places. Below, we’ll discuss what rates are charged by North Dakota’s cities and counties, how sales tax registration and filing work, and how to calculate local sales tax in the state.

Highlights

• North Dakota’s base sales tax rate is 5.00%, but the average combined sales tax rate is 7.09%.

• Cities are a substantial source of local sales tax in North Dakota, and the average local sales tax rate is 2.09%.

• Businesses that sell into North Dakota must register, collect the correct combined rate based on the buyer’s location, and file returns through the state’s Taxpayer Access Point (TAP) system.

What is the North Dakota sales tax rate?

North Dakota’s statewide sales tax rate is 5.00%. This base rate applies to most retail sales of tangible personal property.

What are the local sales tax rates in North Dakota?

North Dakota allows both cities and counties to impose local sales taxes as well as use taxes. The combined rate depends on where the sale occurs. Two transactions just a few miles apart can carry different tax obligations. Many population centers charge local taxes, which raises the average combined rate to 7.09%.

Some cities have additional taxes for specific things such as lodging, restaurants, and motor vehicle rentals. For example, Fargo, Grand Forks, Minot, Valley City, and West Fargo impose a local lodging tax. County taxes are less common than city taxes. When both city and county taxes apply, they stack on top of each other. That means some places might charge as much as 3.75% in local additions on top of the 5.00% state rate.

North Dakota’s sales tax average in 2026

What is North Dakota’s sales tax rate by city?

What is North Dakota’s sales tax rate by county?

Combined rates vary across North Dakota’s cities. The table below shows the minimum city rates for major population centers. Actual rates are higher, factoring in state sales tax and potential additional taxes.

What’s taxable in North Dakota

Tangible personal property is taxable unless specifically exempt. Common exemptions include:

• Most groceries, but not prepared food

• Prescription drugs

• Commercial fertilizer, as well as fungicides, herbicides, and insecticides for agriculture

• Medical equipment

• Digital products, but not prewritten computer software.

Tax-exempt services include:

• Transportation and delivery

• Hospital and nursing home work

• Repair services

How does North Dakota’s sales tax work for businesses?

First, you need to determine whether you have to collect sales tax in North Dakota. That requires a physical nexus (a store, warehouse, office, or employees in the state) or economic nexus (more than $100,000 in taxable sales within North Dakota in the current or prior calendar year). If you have either, you must register.

Once you register, you’ll receive a permit and can begin collecting tax on taxable transactions. Apply for a permit 30 days before you open for business.

The state assigns a filing frequency to a business (monthly, quarterly, or annually) based on how often its sales occur. Returns are filed and paid through the TAP system. Late filings are subject to penalties. If you collect tax in multiple North Dakota jurisdictions, your return must reflect each local rate separately. You cannot remit a flat statewide rate.

Multilocation and remote sellers

For businesses that operate within North Dakota, the local rate depends on where they sell from. Retailers that sell from multiple locations in the state must collect the correct combined rate for each one.

North Dakota follows destination-based sourcing. So for remote sellers, the rate is based on the delivery address.

If your North Dakota customer base spans Fargo, Williston, and rural Stutsman County, you’re handling at least three different combined rates across those transactions. Managing multiple jurisdictions quickly becomes complex as sales volume grows.

Tools like Stripe Tax automatically apply the correct combined rate based on the buyer’s location at the point of sale. Stripe Tax also tracks product taxability. If an order mixes taxable and exempt items, it applies tax only where it’s due. If your business has a tax obligation in other states alongside North Dakota, Stripe Tax produces the jurisdiction-level records needed to file correctly. You don’t have to manually reconcile rate tables or cross-reference the tax commissioner’s database before every return.

How do you calculate North Dakota’s sales tax?

To calculate North Dakota sales tax, multiply the sale price by the correct combined rate for the transaction location.

The challenge is identifying the correct rate, especially if you’re shipping to multiple addresses, operating in different cities, or selling a mix of taxable and exempt goods in the same transaction. Stripe’s sales tax calculator can provide quick estimates for the combined rate by location.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.