2024 Guide to State Sales Tax in North Dakota

As an e-commerce seller, you will need to collect sales tax in North Dakota if you have:

• taxable sales of $100,000 in the previous or current calendar year (economic nexus), or
• physical presence in North Dakota (physical nexus).

Below, we will highlight some of the basic provisions of North Dakota sales tax law.

What is the tax rate range for North Dakota?

State: North Dakota’s general sales tax rate is 5%.

Local: North Dakota localities impose their own sales tax at rates ranging from 0% to 3%.

Local Taxes – City and County Taxes.

Do you have physical or economic nexus in North Dakota?

Physical nexus

Certain business activities create physical nexus in North Dakota. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to North Dakota.

Examples of business activities that can create physical nexus in North Dakota include:

• Has a store, showroom, distribution center in the state,
• Own or lease physical property in the state,
• Have inventory in the state, or
• Have employees present in the state.

Economic nexus

Remote sellers and marketplace facilitators that have taxable sales of $100,000 in the previous or current calendar year must collect and remit North Dakota sales and use tax on taxable sales.

Additional information:

• Once taxable sales exceed $100,000, a remote seller must obtain a permit and begin collecting tax on sales delivered during the following calendar year or beginning 60 days after the threshold is met, whichever is earlier.
• Marketplace facilitators required to register and collect sales and use taxes in North Dakota must certify to each marketplace seller that it will collect and remit all state and local sales and use taxes
• A marketplace seller that received written certification from the marketplace facilitator is no longer liable for tax on sales made through that marketplace. If a marketplace seller has a valid North Dakota sales and use tax permit, the seller should not report sales made through a marketplace if the facilitator has certified its responsibility to collect and remit tax.

Sales and Use Tax and Marketplace Facilitator.

What are examples of sales of taxable items?

• Tangible personal property, unless an exemption applies
• Clothing
• Certain services
• Leases and rentals of tangible personal property

What are examples of sales of nontaxable/exempt items?

• Food (except candy, dietary supplements, soft drinks, and prepared food)
• Prescription drugs
• Farm machinery and farm irrigation equipment
• Digital goods
• Software as a Service (SaaS)

Sales and Use Tax Guidelines.

Are there any sales tax holidays?

Currently, North Dakota does not have any sales tax holidays.

Is North Dakota a member of the SST (Streamlined Sales Tax)?

Currently, North Dakota is a full member of the Streamlined Sales Tax Governing Board (SSTGB).

How to get a sales tax permit / links to register in North Dakota?

You can register online at:

• Streamlined Sales Tax Registration System
• ND TAP

Rates

• See Local Taxes – City and County Taxes
• See Sales Tax Rate Lookup