North Dakota announces new local tax rates for 2026

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Even one outdated rate can snowball into a filing or penalty problem.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.

For TaxCloud users: If you use TaxCloud, you’re covered. TaxCloud updates rate tables automatically — including local and county-level changes in all states. Manual updates not required. Start a free 30-day trial today.

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