North Dakota Sales
Tax Rate

North Dakota's state sales tax rate is 5 percent in 2026 for most retail sales. Cities and counties can add local sales and use taxes, so the combined rate depends on where the purchaser receives the taxable product or service. North Dakota also uses special state rates for alcoholic beverages, new farm machinery and new mobile homes.

What Is the North Dakota Sales Tax Rate in 2026?

The general North Dakota state sales tax rate is 5 percent for most retail sales.

Local Sales Tax Can Change the Combined North Dakota Rate

North Dakota cities and counties may impose local sales, use and gross receipts taxes in addition to the 5 percent state rate.

Local rates are not uniform and changes can take effect at the beginning of a calendar quarter. The Office of State Tax Commissioner publishes a Local Taxes by Location guideline plus quarterly rate-change notices.

For example, effective January 1, 2026, general combined rates in Walsh County include 7 percent in Edinburg and 8.75 percent in Grafton because local city and county taxes differ. Businesses should use the state rate locator for the delivery address rather than apply one combined percentage across North Dakota.

How to Calculate North Dakota Sales Tax

A North Dakota sales tax calculator should apply the state rate for the transaction type then add the local taxes that apply at the delivery location.

A $100 general taxable retail sale with no local tax produces $5 of state sales tax. If the same sale is delivered to a jurisdiction with 2 percent of combined local tax, the total rate becomes 7 percent and the tax is $7.

Marketplace facilitators and remote sellers also use the delivery location to determine the applicable state and local tax. Local lodging, restaurant and motor vehicle rental taxes can require separate analysis when the transaction falls into one of those categories.

Groceries Are Generally Exempt but Prepared Food Is Taxable

North Dakota generally exempts food and food ingredients for human consumption, but several common food categories remain taxable.

• Basic food and food ingredients are generally exempt.
• Prepared food is taxable.
• Candy and chewing gum are taxable.
• Dietary supplements are taxable.
• Soft drinks containing 50% or less fruit juice are taxable.
• Food sold through vending machines is taxable.
• Alcohol and tobacco do not qualify for the food exemption.

Prepared food includes food sold heated, food made by combining two or more ingredients for sale as one item plus food sold with eating utensils provided by the seller. Bakery items can remain exempt when they are not heated and are sold without eating utensils.

North Dakota Has Special Sales and Gross Receipts Tax Rates

Certain categories use state rates other than the ordinary 5 percent general sales tax.

Alcohol is subject to a 7 percent state gross receipts tax. New farm machinery used exclusively for agricultural production and new mobile homes use a 3 percent state rate. Applicable local taxes can still change the combined amount and some local jurisdictions provide special exemptions or maximum local-tax caps.

These special rules should remain separate from a general 5 percent sales tax estimate. A calculator should ask what is being sold before it chooses the state rate.

North Dakota Economic Nexus Uses Only the $100,000 Sales Test

A remote seller without physical presence generally has to collect North Dakota sales and use tax when taxable sales into the state exceed $100,000 in the current or previous calendar year.

North Dakota repealed the former 200-transaction test, so the current remote-seller threshold focuses on taxable sales revenue. Once the seller exceeds $100,000, it generally must register and begin collection by the next calendar year or 60 days after crossing the threshold, whichever is earlier.

Physical presence can create nexus without the $100,000 threshold. The seller should collect applicable local tax based on where the taxable sale is delivered.

Marketplace Facilitators Use a Similar $100,000 Threshold

A marketplace facilitator without physical nexus must generally collect North Dakota sales and use tax when taxable marketplace sales exceed $100,000 in the current or prior calendar year.

The facilitator counts taxable sales made through the marketplace and must collect state plus applicable local tax once it has a collection obligation. A marketplace seller that receives the facilitator's certification generally is not liable for collection on sales made through that marketplace, though direct sales can create separate obligations.

North Dakota Use Tax Covers Untaxed Taxable Purchases

Use tax generally applies when taxable tangible personal property is brought or shipped into North Dakota for use, storage or consumption and the seller did not collect the required tax.

The use-tax base generally follows the sales-tax purchase-price rules and applicable local taxes can also apply. North Dakota can allow credit when legally imposed tax was paid to another state, subject to the state's rules.

Sales Tax Is Separate From North Dakota Income Tax and Payroll

North Dakota sales tax applies to retail transactions and should not appear as an employee payroll deduction.

For individual income-tax questions, use the North Dakota income tax guide. After a real payroll run is complete, the North Dakota pay stub generator can organize actual wages and payroll deductions without mixing retail tax into the statement.

For broader lawful payroll documentation, the online paystub workflow should be used only with accurate employment and payment information.

Tax Information and Responsible Use

This guide is for general sales-tax planning and business recordkeeping. It does not replace current instructions from the state tax authority or advice for a specific transaction.

Sales and use tax can depend on the product or service, delivery location, exemption status, seller activity and transaction date. Businesses should use current official rate tables and maintain records that support the tax collected or exemption claimed. Online PayStub is intended for lawful payroll, business and recordkeeping purposes and should be used only with genuine payroll information.