North Dakota announces new local tax rates for 2026
North Dakota is updating local sales tax rates in Sherwood, Surrey, Medina, and Walsh County. If you make sales in these areas, check your rates and update your system.
Written by Alex Lamachenka
Head of DemandGen
Published
TL;DR
North Dakota has published new local sales tax rates taking effect January 1, 2026. Rate changes impact Sherwood, Surrey, Medina, and Walsh County. If you sell into these areas — or file sales tax returns in North Dakota — now’s the time to double-check your rate tables.
What changed
New sales and use tax rates, effective January 1, 2026:
- Sherwood:
1.5%→ 2% - Surrey:
2%→ 2.5% - Medina:
1.5%→ 2.5% - Walsh County:
0.5%→ 1.5%
These rate changes apply to both sales and use tax, and affect all taxable sales within city or county limits.
Who’s affected
- Online retailers with nexus in North Dakota
- Sellers shipping to customers in the affected cities or county
- Anyone manually managing North Dakota rate tables or tax returns
- Finance teams preparing Q1 2026 filings
Why this matters
Local sales tax changes may seem minor, but:
- A 0.5–1% error can cause compliance issues
- Old rates can create miscalculated invoices and under-collected tax
- Manual rate updates across multiple cities increase audit risk
Even one outdated rate can snowball into a filing or penalty problem. Staying current helps keep your returns accurate and audit-ready.
Next steps
- Check if you sell to Sherwood, Surrey, Medina, or Walsh County
- If yes — confirm your sales platform has updated rates
- If no — consider adding North Dakota to your rate monitoring list
- If filing in ND — use the updated rates starting January 1, 2026
Other US Sales Tax Updates
New Maricopa Sales Tax Rate Takes Effect October 2025
Effective October 1, 2025, Maricopa’s city sales tax rate will increase by 0.50%, applying to both in-state sellers and remote sellers with nexus in Arizona.
Illinois eliminates 200-transaction economic nexus threshold
Starting Jan 1, 2026, Illinois will drop its 200-transaction nexus test. Remote sellers need only track $100,000 in sales to trigger obligations.
Washington will open a 4-month voluntary disclosure agreement window for international remote sellers in 2026
Washington’s Feb-May 2026 VDA program gives international sellers a limited-time chance to resolve tax exposure with reduced penalties. With audits intensifying, this four-month window is a safer alternative to being discovered later.