The Ultimate North Dakota Sales Tax Guide

If you’re doing business in North Dakota, understanding the state’s sales tax requirements is crucial for compliance.

This guide breaks down everything you need to know — from when to collect sales tax, to how you can determine tax nexus, and how to calculate the correct amount.

We'll also introduce a streamlined solution that simplifies sales tax compliance. This will help you stay accurate and up-to-date while allowing you to focus on growing your business.

North Dakota Sales Tax Rate Range 2025

The North Dakota state sales tax rate is 5% for most retail sales. However, cities and counties can impose local sales taxes and levy special sales taxes, such as lodging and restaurant taxes and motor vehicle rental taxes.

How to Calculate Sales Tax in North Dakota

To calculate sales tax accurately in North Dakota, you’ll need to add these rates:

• State sales tax
• County sales tax
• City sales tax
• Any applicable district taxes

For example, there are three types of sales tax in Wilton, North Dakota:

• North Dakota sales tax rate of 5%
• Burleigh County sales tax of 1.0%
• Wilton city sales tax of 2%

This brings the total sales tax rate of Wilton to 8%.

Collecting North Dakota Sales Tax from Customers

Let’s explore how you can collect North Dakota state sales tax.

Do I Have to Collect North Dakota Sales Tax from Customers?

If your business sells taxable goods or certain services in North Dakota, you’ll need to collect sales and use tax. This also means collecting both state and local sales taxes to stay compliant. 

What Creates Sales Tax Nexus in North Dakota?

The following factors can create nexus in North Dakota:

• Physical nexus: Businesses that have a physical presence in North Dakota. 

• Economic nexus: Out-of-state businesses selling taxable goods in the state must collect sales tax unless they qualify for the small seller exception. In that case, they are only required to do so if their sales exceed $100,000 in a calendar year.

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Sales Tax from North Dakota Customers if I Sell on Amazon, Walmart, eBay, or Etsy?

No. 

North Dakota has a marketplace facilitator law that requires marketplaces like Etsy or Amazon to collect sales tax on behalf of third-party sellers on their platforms. However, if a marketplace facilitator doesn’t meet the $100,000 threshold, they do not need to register, collect, and remit North Dakota sales tax.

Taxable Products in North Dakota

North Dakota imposes sales tax on most tangible goods and services, but some items, like groceries and certain medicines, are exempt.

Here’s a comprehensive breakdown of taxable items in North Dakota.

Are Groceries Taxable in North Dakota? 

No, grocery items, like food and food ingredients, aren’t taxed by the state. However, the exemption doesn’t apply to products like candies, prepared food, or soft drinks.

Is Clothing Taxable in North Dakota?

Yes, clothing is taxable in North Dakota.

Are digital products taxable in North Dakota?

Digital products, like digital audio and books, delivered electronically, are not taxable.

Is Software-as-a-Service (SaaS) Taxable in North Dakota?

Prewritten (canned) software is taxable, while custom software is typically exempt from sales tax.

Are Services Taxable in North Dakota?

Some services, like hospitals and nursing homes, are tax-exempt in the state. 

Tax-Exempt Items

A few sales tax-exempt items in North Dakota are:

• Prescription drugs sold under a doctor’s prescription. 
• Oxygen and anesthesia gases sold under a doctor's prescription.
• Commercial fertilizers sold to a farmer, rancher, or vegetable garden grower.
• Agricultural byproducts for use in the manufacture or generation of steam or electricity

How to Register for a North Dakota Retail License

You can register for a retail license online at the North Dakota Taxpayer Access Point (TAP) website. 

Learn how to register for a seller's permit in every US state.

Do I Need a North Dakota Sales Tax License if I’m Only a Wholesaler? 

Yes, but wholesalers can use a resale certificate to purchase items for resale without paying North Dakota sales tax.

How to Collect Sales Tax in North Dakota

North Dakota follows a destination-based sales tax system.  

This means when selling to a customer in North Dakota, you must apply the sales tax rate based on the customer’s destination — not your business location.

Should You Collect Sales Tax on Shipping Charges in North Dakota?

If a sale is taxable, any shipping, delivery, or transportation fees are also subject to sales tax. However, if the item being sold is tax-exempt, those charges are also exempt. 

On the other hand, if a separate delivery service (not the seller) bills the customer directly, those delivery fees remain tax-free.

Learn more about sales tax on shipping in every state in the United States.

How to File and Pay Sales Tax in North Dakota

There are multiple ways to file and pay sales tax in North Dakota:

• Automated: Let Zamp handle your North Dakota sales tax filing and remittance so you won’t have to deal with sales tax returns ever again.
• Online: Taxpayers can file and pay electronically via the ND TAP website.

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing North Dakota Sales Tax

What Is Use Tax?

If you buy an item at retail for use, storage, or consumption in the state and it wasn’t taxed at the time of purchase, you’ll need to pay use tax on it. The use tax rate is the same as the sales tax rate. 

What Is the Penalty for Filing and/or Paying North Dakota Sales Tax Late?

If you miss the tax payment deadline, you'll face a penalty of either 5% of the unpaid tax or $5, whichever is higher. 

Additionally, North Dakota applies a 12% annual interest rate on overdue taxes, starting from the filing deadline until the full amount, including interest and penalties, is paid.

Can I Amend a North Dakota Sales Tax Return? 

Yes, you can make amendments, such as report additional tax due or request a tax refund through ND TAP. You can also call 701-328-1246 for instructions to amend offline.

How Often Do I Need to File and Pay Sales Tax in North Dakota?

You should file and pay sales tax on the last day of each month following your sales tax period. 

North Dakota Sales Tax Due Dates

North Dakota due dates for monthly filers:

Taxable Period	Filing Due Date
January 2025	February 28, 2025
February 2025	March 31, 2025
March 2025	April 30, 2025
April 2025	June 2, 2025
May 2025	June 30, 2025
June 2025	July 31, 2025
July 2025	September 2, 2025
August 2025	September 30, 2025
September 2025	October 31, 2025
October 2025	December 1, 2025
November 2025	December 31, 2025
December 2025	February 2, 2026

North Dakota quarterly sales tax filing due dates:

North Dakota annual filing due date:

Let The Experts Handle Your North Dakota Sales Tax Filing

Sales tax doesn’t have to be complicated — especially with Zamp on your side.

Our intuitive platform simplifies everything, from smooth onboarding to precise tax calculations and effortless one-click filing — no matter the size of your business.

Get started with Zamp today and take the hassle out of sales tax.