North Dakota Sales Tax Calculator

5% state tax, plus city and county taxes

North Dakota’s sales tax is 5% on most retail sales. A few items are taxed at different state rates instead: alcohol has a 7% gross receipts tax, and new farm machinery and new mobile homes have a 3% gross receipts tax. Cities and counties add their own sales, use and gross receipts taxes, averaging about 2.09%, for a typical combined rate of 7.09%.

Local changes only take effect on the first day of a calendar quarter, and the Tax Commissioner posts them at least 60 days ahead. The newest change is in Minot, where the city rate rose by 0.5% to 2.5% on October 1, 2026.

Local “max tax” caps: claiming back tax on big purchases

Many North Dakota cities cap the local tax on a single purchase, which is unusual. Each city sets a “maximum tax” (also called a refund cap). The retailer can either stop collecting city tax at the cap or collect the full amount. If it collects more than the cap, you can apply to the Office of State Tax Commissioner for a refund of the excess through the Local Tax Refunds option on ND TAP (tap.tax.nd.gov).

Worked example: a $4,000 furniture set in Fargo. The 5% state tax is $200.00, and the state tax has no cap. Fargo’s 2.25% city tax would be $90.00, but the city’s maximum is $56.25 per sale. If the store charged the full $90.00, you could claim $33.75 back. In West Fargo, which has no cap, the full city tax applies.

What North Dakota exempts

Food and food ingredients are exempt, but the definition excludes alcoholic beverages, candy and gum, dietary supplements, prepared food, soft drinks with 50% or less fruit juice, and tobacco. A carton of 100% juice is exempt; a fruit-flavored drink with 10% juice is taxed.

Drugs sold under a doctor’s prescription for human use are exempt. Clothing and shoes are taxed at the full rate, and North Dakota has no sales tax holiday. Sales of Bibles, hymnals, textbooks and prayer books to nonprofit religious organizations are exempt. Doctor-prescribed medications, insulin and insulin supplies, oxygen, mobility-enhancing equipment and prosthetic devices are also exempt.

Vehicles: the 5% motor vehicle excise tax

Vehicles are not subject to the regular sales tax in North Dakota. Instead you pay a 5% motor vehicle excise tax on the purchase price, meaning the sale price minus any trade-in, when you title the vehicle. A vehicle not acquired by purchase is taxed on its fair market value. On a $40,000 pickup with a $12,000 trade-in, the tax is $1,400.00. Leases of vehicles under 10,000 pounds for a year or more are taxed at 5% of the lease payments instead. Short-term vehicle rentals are handled separately and can include local motor vehicle rental taxes in some cities.

Items taxed at special North Dakota rates

Some sales use a different state rate from the general 5%. These state gross receipts taxes replace the regular state sales tax for those items. The examples show only the state portion; local tax may apply in some cities.

North Dakota and its neighbors

North Dakota’s 5% state rate is lower than Minnesota’s 6.875%, but local taxes in Fargo and Minot narrow the gap. Montana, to the west, has no general sales tax. Shoppers buying in Montana or Minnesota and bringing goods home owe North Dakota use tax for any difference.

Use tax on goods brought into North Dakota

Use tax applies to goods brought or shipped into North Dakota for storage, use or consumption when no sales tax was collected. It is calculated the same way as sales tax and applies to individuals as well as businesses: home goods, clothing, supplies, equipment and building materials are all covered. It is also due when another state charged tax at a lower rate than North Dakota’s combined state and local rate.

Example: a $2,000 snowblower bought in Montana, which has no sales tax, and used at a Fargo home owes the 5% state rate plus Fargo’s 2.25% and Cass County’s 0.5%, a combined 7.75%, or $155.00. Fargo’s and Cass County’s per-sale caps apply to local use tax in the same way as to local sales tax.