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 Ryan Pinkham
VP of GTM
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Even one outdated rate can snowball into a filing or penalty problem.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
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
Official sources:
- 1.
Disclaimer
TaxCloud provides sales tax compliance solutions. We do not provide legal or tax advice. For questions about your specific tax situation or filing requirements, we recommend consulting a qualified sales tax accountant.
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