North Dakota has a 5% state-wide sales tax, and many cities impose additional local sales taxes. If you sell taxable goods or services in North Dakota, you may be required to register, collect, and remit sales tax.
Whether you operate a local business in North Dakota, sell through your own ecommerce website, or are an out-of-state seller that has exceeded North Dakota’s economic nexus threshold, understanding your obligations is essential to remaining compliant.
North Dakota Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 5% |
| Local sales taxes | Yes – varies by city |
| Economic nexus | $100,000 in sales |
| Sales tax permit required | Yes |
| Filing frequency | Monthly, quarterly or annually |
| Registration | North Dakota Taxpayer Access Point (TAP) |
When Do You Have Sales Tax Nexus in North Dakota?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in North Dakota.
- Uses a third-party fulfilment centre located in North Dakota.
- Exceeds $100,000 in gross sales into North Dakota during the current or previous calendar year.
If you meet any of these conditions, you’ll generally need to register and begin collecting North Dakota sales tax.
What Is Taxable in North Dakota?
Most tangible personal property sold in North Dakota is taxable. Examples include:
- Electronics
- Furniture
- Clothing
- Sporting goods
- Household goods
- Appliances
North Dakota also taxes many digital products and certain specified services.
Common exemptions include:
- Prescription medications
- Certain medical equipment
- Sales for resale with a valid exemption certificate
- Certain agricultural purchases
- Other exemptions provided under North Dakota law
Businesses should review whether their products or services qualify for an exemption before making taxable sales.
How to Register for a North Dakota Sales Tax Permit
Businesses with nexus must register before making taxable sales.
Registration is completed online through the North Dakota Taxpayer Access Point (TAP).
- Complete the online registration.
- Provide your EIN and business information.
- Receive your North Dakota Sales Tax Permit.
- Begin collecting sales tax.
There is no fee to register for a North Dakota Sales Tax Permit. Most online registrations are processed within a few business days.
North Dakota Sales Tax Rates
North Dakota has a 5% statewide sales tax, but customers may pay a higher combined rate because many cities impose additional local sales taxes. Combined sales tax rates vary depending on where the customer receives the product.
North Dakota generally uses destination-based sourcing. This means sales tax is calculated based on where the customer receives the product, rather than where the seller is located. Businesses should ensure they’re collecting the correct combined state and local sales tax rate on every transaction.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay and Walmart Marketplace generally collect and remit North Dakota sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Filing Requirements
Collecting sales tax is only part of your responsibility. You must also file sales tax returns and remit the tax you’ve collected to the North Dakota Office of State Tax Commissioner.
Your filing frequency is assigned when you register and is based on your expected sales tax liability and will either be:
- Monthly
- Quarterly
- Annually
The Office of State Tax Commissioner will notify you of your assigned filing frequency after registration. If your sales volume changes significantly, your filing frequency may be adjusted. Businesses must file every required return, even if no sales tax is due during the reporting period. These are known as zero returns, and failing to file them can still result in penalties.
Returns and payments are submitted electronically through North Dakota TAP.
North Dakota Sales Tax Compliance Checklist
- Determine whether you have physical or economic nexus.
- Register through the North Dakota Taxpayer Access Point (TAP).
- Collect the correct state and local sales tax rates.
- Keep exemption and resale certificates on file.
- File every required return, including zero returns.
- Maintain accurate sales and tax records.
- Monitor your North Dakota sales to ensure ongoing compliance.
FAQs
What is the sales tax rate in North Dakota?
North Dakota has a 5% state-wide sales tax, with additional local taxes that vary by city.
What is the economic nexus threshold in North Dakota?
You generally establish economic nexus if your business exceeds $100,000 in gross sales into North Dakota.
How do I register for North Dakota sales tax?
Register online through the North Dakota Taxpayer Access Point (TAP) to obtain your Sales Tax Permit.
Do marketplaces collect North Dakota sales tax?
Yes, Amazon, Etsy, eBay, Walmart Marketplace, and other marketplace facilitators generally collect and remit sales tax on marketplace sales.
Do I need to file a return if I made no sales?
Yes, registered businesses are generally required to file zero returns even if no sales tax is due.
Final Thoughts
North Dakota’s sales tax system combines a statewide rate with local city taxes, making it important for businesses to determine whether they have nexus and charge the correct combined sales tax rate. Registering on time, maintaining accurate records, and filing returns by their due dates will help keep your business compliant.
Need help with North Dakota sales tax registration, filings, or compliance? Contact our tax professionals today.
