Key takeaways
- North Dakota sales tax rates: The state rate is 5%, and local taxes bring combined rates to between 5% and about 8.5%. Alcohol is taxed at 7% and certain equipment at 3%.
- Economic nexus: Remote sellers must collect once gross sales into North Dakota exceed $100,000 in the previous or current calendar year. There is no transaction-count threshold.
- Filing & penalties: Returns are due on the last day of the month after the period, with a 1.5% timely-filing discount capped at $110. Late filing or payment costs 5% or $5 per month, up to 25%.
North Dakota sales tax key facts (2026)
| Item | North Dakota |
|---|---|
| Statewide rate | 5% |
| Combined rate range | 5%–8.5% |
| Economic nexus threshold | $100,000 (no transaction count) |
| Sourcing | Destination-based |
Collect and file North Dakota sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
No.
| Item | North Dakota |
|---|---|
| Groceries | Exempt (prepared food/candy/soda taxable) |
| Timely-filing discount | 1.5% (max $110) |
| Return due date | Last day of the month after the period |
| Governing agency | North Dakota Office of State Tax Commissioner |
What is the sales tax rate in North Dakota?
North Dakota’s statewide sales and use tax rate is 5%. A few categories differ — alcoholic beverages are 7% and certain equipment is 3%. Local jurisdictions add their own taxes, bringing combined rates to between 5% and about 8.5%. Look up local rates on North Dakota TAP.
Do you have sales tax nexus in North Dakota?
Nexus is the connection that obligates your business to collect and remit North Dakota sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in North Dakota, such as:
- A physical place of business (including a warehouse or distribution center)
- Employees, independent contractors, or representatives working in the state
- Leasing tangible personal property within the state
- Regular or systematic solicitation of sales in the state
Economic nexus
Out-of-state sellers establish economic nexus once gross sales into North Dakota exceed $100,000 in the previous or current calendar year. North Dakota uses a dollar threshold only — it removed the 200-transaction test (effective 2019), so transaction count no longer matters.
What is taxable in North Dakota?
Tangible personal property is generally taxable. Exemptions include groceries (for off-premise consumption), prescription medications and medical devices, and machinery and chemicals used in agriculture. Some services are taxable.
Is SaaS taxable in North Dakota?
No. North Dakota does not tax SaaS. (Downloaded prewritten software can be taxable, but remotely accessed SaaS is not.)
How is food taxed in North Dakota?
Food and food products for off-premise consumption (groceries) are exempt. Prepared foods, candy, and soft drinks are taxable at the 5% rate plus local taxes.
How to register for a North Dakota sales tax permit
Obtain a Sales and Use Tax Permit before collecting. Taxually can register for you, or you can apply online through North Dakota TAP or by mail. Registration is free.
Have ready: personal identification (SSN, address), business identification (EIN, address), entity type, NAICS code, and a description of your business activities.
How to collect sales tax in North Dakota
North Dakota is destination-based — charge tax based on the buyer’s location, whether you’re in-state or remote. The base rate is 5% plus any local rate.
Filing and paying North Dakota sales tax
The Tax Commissioner assigns monthly, quarterly, semi-annual, or annual filing based on your volume. Returns are due the last day of the month following the period (next business day if a weekend or holiday). North Dakota offers a 1.5% timely-filing discount, capped at $110.
File and pay online through North Dakota TAP or by mail. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing: 5% of the tax due or $5 per month (whichever is greater), up to 25%.
- Late payment: 5% of the tax due or $5 per month (whichever is greater), up to 25%.
- Interest of 12% per year on unpaid tax.
Frequently asked questions
What is the sales tax rate in North Dakota in 2026?
The state rate is 5%, with local taxes bringing combined rates to between 5% and about 8.5%. Alcohol is 7% and certain equipment is 3%.
What is the economic nexus threshold for North Dakota?
$100,000 in gross sales into North Dakota in the previous or current calendar year. There is no transaction-count threshold.
Is SaaS taxable in North Dakota?
No. North Dakota does not tax SaaS. Downloaded prewritten software can be taxable.
Are groceries taxed in North Dakota?
No, groceries for off-premise consumption are exempt. Prepared food, candy, and soft drinks are taxable.
When are North Dakota sales tax returns due?
The last day of the month following your reporting period.
Automate Alaska sales tax compliance
.avif)
.avif)
