North Dakota sales tax rate changes

Tracking state and local sales tax rate changes in North Dakota


North Dakota sales tax changes effective July 1, 2019

The new rates listed below include state and local taxes.

City County Rate change New rate
Larimore Grand Forks County +1.0% 7.0%
New Rockford Eddy County +0.5% 7.5%

See the North Dakota State Tax Commissioner for additional details.

North Dakota Sales Tax Rate Guide

Sales tax guide for North Dakota businesses

Our free, online guide covers all aspects of managing North Dakota sales tax compliance. Topics include:

  • Business registration
  • Collecting sales tax
  • Filing sales tax returns
  • State nexus obligations
  • And more!

Visit the guide

North Dakota sales tax changes archive

A number of local sales and use tax rate changes took effect in North Dakota on January 1, 2019.

Bowman extended an existing 1% city sales, use, and gross receipts tax and also increased it by 1%, for a total local sales and use tax of 2% and combined rate of 7%. Additional details.

Burlington imposed a 1.5% city sales, use, and gross receipts tax, for a combined state and local rate of 7%. Additional details.

Enderlin increased its 2% city sales, use, and gross receipts tax to 2.5%, for a combined state and local rate of 7.5%. Additional details.

New Salem increased the city sales, use, and gross receipts tax from 1% to 2%, for a combined state and local rate of 7.5%. Additional details.

Towner increased the city sales, use, and gross receipts tax by 1 percent, for combined city rate of 2% and a total rate of 7%. Additional details.

Local tax jurisdictions in North Dakota have the authority to set a cap on sales tax (for example, Towner caps it at $25 per sale). They can also exempt certain sales (e.g., new farm machinery). In other words, sales tax compliance in North Dakota may be more complicated than you think.


Numerous local option tax changes are taking effect April 1, 2018, in North Dakota. Local option taxes are imposed by cities and counties but administered by the North Dakota Office of State Tax Commissioner, which oversees tax collection, controls for delinquency, and performs audits.

Many localities in North Dakota have a maximum tax per purchase, for example, $25 or $50. Consumers are only required to pay the maximum tax, but since retailers generally collect and remit tax on the sales price, consumers frequently end up paying more than the maximum tax on costly purchases — it’s not the responsibility of retailers to determine the maximum tax on all transactions, though they may provide that service as a convenience to their customers. Consumers may obtain a refund of overpaid tax by remitting a claim for refund for local sales tax paid beyond the maximum tax.

City tax rate changes

Belfield is retaining its 2% city sales, use, and gross receipts tax. However, it’s eliminating the $50 per sale maximum tax altogether.

Edgeley is increasing its city sales, use, and gross receipts tax by 1%, to 3%. The maximum tax remains $50 per sale.

Grand Forks is increasing its city sales, use, and gross receipts tax by 0.5%, bringing the local option tax to 2.25%. The maximum tax will be $56.25 per sale.

Lincoln will impose a new city sales, use, and gross receipts tax of 1%, with a maximum tax of $25 per sale. In addition, it will provide a permit holder compensation for taxpayers who file on time: 3% of the tax due, to a maximum of $50 per month and $150 per quarter.

Linton will retain its 2% city sales, use, and gross receipts tax but change its maximum tax to $250 per sale.

Mohall will increase the city sales, use, and gross receipts tax by 1%, to 2%. The maximum tax remains $25 per sale.

Local option sales, use, and gross receipts taxes are reported on the same form as state sales tax. There are separate forms for city lodging taxes, city motor vehicle rental taxes, and city restaurant taxes. Additional details are available from the North Dakota Office of State Tax Commissioner.


Local sales tax is subject to change quarterly in North Dakota. New rates and exemptions took effect in two locations on Oct. 1, 2017.

Casselton increased the city sales, use, and gross receipts tax by 1%, to 2%. The maximum tax remains $25 per sale.

Tioga made no change to the 2.5% city sales, use, and gross receipts tax rate. However, it eliminated the exemption for new farm machinery. Additional information is available from the North Dakota Office of State Tax Commissioner.


Numerous local sales and use tax rate changes will take effect in North Dakota on July 1, 2017. Together, they beautifully illustrate the complexity of sales and use tax compliance, as the changes affect rates, maximum tax amounts, and tax administration.

City tax changes

  • Carpio will impose a new 1.5% city sales, use, and gross receipts tax, with a maximum tax of $25 per sale
  • Dickinson will increase the maximum tax from $25 to $100 per sale; the 1.5% city sales, use, and gross receipts tax remains the same
  • Linton is extending a 1% portion of the city sales, use, and gross receipts tax that’s scheduled to sunset; the local tax rate will therefore remain 2%
  • Tioga will eliminate its maximum tax, which is currently $25 per sale; the city rate remains unchanged at 2.5%

Other sales tax changes

As of March 7, 2017, the Office of State Tax Commissioner discontinued its administration of the Standing Rock Sioux tribe's sales, use, and gross receipts tax. The Standing Rock Tribal Tax Department now administers the tribal tax.

Local rate change notifications in North Dakota are currently mailed to businesses in affected areas. Beginning January 1, 2018, however, these notifications will be made electronically only: Mail notifications will be discontinued. Additional information is available from the North Dakota Tax Commission.


The following local sales and use tax changes are scheduled to take effect in North Dakota on April 1, 2017.

The 1.5% city sales, use, and gross receipts tax in Forman will remain 1.5%. However, the maximum tax (refund cap) will be eliminated.

A new city sales, use, and gross receipts tax of 2% will take effect in Horace. There will be no maximum tax (refund cap).

In addition, as of March 7, 2017, the North Dakota State Tax Commission will no longer administer the Standing Rock Sioux Tribe tribal tax. Questions concerning that tax should be addressed to the Standing Rock Tribal Tax Department, at (701) 854-7340.

More information is available from the North Dakota Office of State Tax Commissioner.


A number of local sales, use, and gross receipts tax rate changes took effect in North Dakota on January 1, 2017.

New taxes

  • Hettinger County is imposing a 0.5% county sales, use and gross receipts tax, for a new county rate of 0.5%
  • Stanley is imposing a 2% city lodging tax, for a combined city lodging tax of 8.5% (5% state, 1.5% city sales tax, and 2% city lodging tax)

Rate increases

  • Carrington is replacing an expired 1% local tax with a 2% local tax, for a combined rate of 7%
  • Cavalier is replacing an expired 0.5% local tax with a 1.5% local tax, for a combined rate of 7%
  • Crosby is replacing an expired 1% local tax with a 3% local tax, for a combined rate of 8%
  • Ellendale is increasing the 1% local tax to 2%, for a combined rate of 7%
  • Harwood is increasing the 1% local tax to 2%, for a combined rate of 7.5% (includes 0.5% county tax)

Other changes

  • Enderlin is retaining the local 2% tax but is eliminating the maximum tax (refund cap)
  • Stanley is dedicating sales, use and gross receipts tax revenue to municipal and recreational improvements, economic development, Stanley Public Library, and Mountrail County Medical Center

Click on the links above for additional information for each locality, including maximum taxes, exemptions, and sunset dates.

Tax automation software facilitates transaction tax compliance for businesses of all sizes, in all states. Learn more.


The local sales and use tax rate in Gwinner, North Dakota increased from 1% to 2%, effective April 1, 2016. As of that date, combined state and local rates for Gwinner are as follows:

  • General sales and use tax: 5%
  • New farm machinery: 5%
  • New farm irrigation equipment: 5%
  • New mobile homes: 5%
  • Lodging: 7%
  • Restaurant (food and non-alcoholic beverages): 7%
  • Alcoholic beverages (for both on-site and off-site consumption): 9%

Additional information is available from the North Dakota State Tax Commissioner (NDTax).

Local sales and use tax in Jamestown also increased from 1% to 2% on April 1, 2016. Combined state and local rates for Jamestown beginning April 1 are as follows:

  • General sales and use tax: 5%
  • New farm machinery: 3% (Jamestown provides an additional exemption)
  • New farm irrigation equipment: 5%
  • New mobile homes: 5%
  • Lodging: 10% (includes the 2% city lodging and 1% city lodging and restaurant tax)
  • Restaurant (food and non-alcoholic beverages): 8% (includes the 1% city lodging and restaurant tax)
  • Alcoholic beverages (for both on-site and off-site consumption): 9%

In addition, there is a maximum tax (refund cap) of $50 per sale. More information is available from NDTax.


Several sales and use tax rate changes took effect in North Dakota on July 1, 2016.

The City of Medora has extended its 2.5% city sales and use tax. However, instead of a portion of the tax going to the North Dakota Cowboy Hall of Fame and the Theodore Roosevelt Medora Foundation, revenue will fund the construction and maintenance of buildings, IT equipment, streets, sewer facilities, vehicles and water.

The City of Page increased its city sales, use, and gross receipts tax from 1% to 2%. Page has a maximum tax (refund cap) of $50 per sale. As of July 1, combined state and local rates in Page are as follows:

  • General sales and use tax: 7%
  • New farm machinery: 5%
  • New farm irrigation equipment: 5%
  • New mobile homes: 5%
  • Lodging: 7%
  • Restaurant: 7%
  • Alcoholic beverages: 9%

Finally, the Standing Rock Sioux Tribe imposed tribal taxes of 5%, 3%, and 7%, plus a 0.25% tribal local tax. The following tax rates take effect July 1:

  • General sales and use tax: 5.25%
  • New farm machinery: 3.25%
  • New farm irrigation equipment: 3.25%
  • New manufactured homes: 3.25%
  • Lodging: 5.25%
  • Restaurant: 5.25%
  • Alcohol: 7%

Goods sold to an American Indian who is an enrolled member residing on any federally recognized Indian reservation or trust property are generally exempt from state and local sales tax. However, according to the North Dakota Tax Commission, there is a new policy for the taxes imposed by the Standing Rock Sioux: “Enrolled tribal members [are] no longer ... exempt from paying sales, use, or gross receipts taxes on taxable transactions occurring on the Standing Rock Sioux Reservation. All exemptions that apply to the state’s taxes also apply to the tribal taxes.”


Numerous sales tax rate changes are scheduled to take effect in North Dakota on October 1, 2015.

The local sales tax rate in the City of Hillsboro remains 2% as of October 1; however, a 1% local sales, use and gross receipts tax is expiring on September 30 and being replaced by a new 1% sales, use and gross receipts tax on October 1. The combined state and local rate for Hillsboro will remain 7%. Additional information.

The City of Mandan will increase the city sales, use and gross receipts tax by 0.75%, for a local rate of 1.75% and a combined state and local rate of 7.25%. Additional local rate information for Mandan is available here.

In Ward County, where the local gross receipts tax is 0.5%, a new 0.5% gross receipts tax will be levied on new farm machinery and equipment, new farm irrigation equipment, and alcohol sales. Another change: coin-operated vending machine sales of 99 cents or less will be exempt. The general state and local sales and use tax rate in Ward County is 5.5% (plus appropriate city rates), and the rate for new farm machinery and new farm irrigation equipment will be 3.5% (plus appropriate city rates). The combined rate for both on-sale and off-sale alcoholic beverages will be 7.5% (plus appropriate city rates). Additional information.


following changes take effect on April 1, 2015.

New taxes

  • Belfield will impose a 2% city lodging tax to gross receipts from leasing/renting hotel, motel or tourist court accommodations for periods of less than 30 consecutive calendar days. The new combined city lodging tax rate will be 9% (5% state, 2% city sales tax, and 2% city lodging tax).
  • Watford City will impose a 1% city lodging and restaurant tax to the following:
    • Gross receipts from leasing/renting hotel, motel or tourist court accommodations for periods of less than 30 consecutive days (for a new combined rate of 9.5%).
    • Gross receipts of restaurants or bars from sales of prepared food and non-alcoholic beverages (for a new combined rate of 7.5%).
    • On-sale alcoholic beverages (for a new combined rate of 8.5%).
  • Williams County will impose a 1% county, sales, use and gross receipts tax, with no maximum tax (refund cap). The new combined rate will be the sum of the 5% state tax, the 1% county tax, and the appropriate city tax.

Rate increases

  • Grafton will increase the city sales, use and gross receipts tax by 0.5% and eliminate the maximum tax (refund cap). The new local sales and use tax rate will be 2.5%, and the new combined rate will be 7.75%.
  • Killdeer will increase the city sales, use and gross receipts tax by 0.5% and eliminate the maximum tax (refund cap). The new local sales and use tax rate will be 2% and the new combined rate will be 7%.
  • Kindred will increase the city sales, use and gross receipts tax by 0.5%. The new local sales and use tax rate will be 2% and the new combined rate will be 7.5%. The maximum tax (refund cap) will remain the same, $50 per sale.
  • Underwood will increase the city sales, use and gross receipts tax by 0.5%. The new local rate will be 2% and the new combined rate will be 7%. There will be no maximum tax (refund cap).

Rate decreases

  • Jamestown will decrease the city sales, use and gross receipts tax by 1%. The new local sales and use tax rate will be 1% and the combined rate will be 6%. There will be a maximum tax (refund cap) of $25 per sale.

Follow the links to each locality for more detailed information, including rates for new farm machinery, new mobile homes, lodging and alcoholic beverages.


Updated, 1.6.2015: The Tax Commissioner has released an updated guideline to local option taxes by location. It includes information on "local sales, use and gross receipts taxes, lodging taxes, lodging and restaurant taxes, and motor vehicle rental taxes imposed by cities and counties but administered by the North Dakota Office of State Tax Commissioner."

The North Dakota Office of State Tax Commissioner has announced numerous local option tax changes, effective January 1, 2015.

Upcoming North Dakota sales tax rate changes:

  • Beulah will increase the city sales, use and gross receipts tax by 1%, for a new rate of 2%.
  • Fredonia will impose a city sales, use and gross receipts tax of 2%. There is no maximum tax.
  • Harvey will increase the city sales, use and gross receipts tax by 1%, for a new rate of 2%.
  • Lignite will impose a city sales, use and gross receipts tax of 2%. There is no minimum tax.
  • Minot will retain the 2% city sales, use and gross receipts tax of 2% but will change the Maximum Tax (Refund Cap) to $100.00 per sale.
  • Stanley will extend the 1.5% city sales, use and gross receipts tax that was previously set to sunset on December 31, 2014.
  • Velva will increase its city sales, use and gross receipts tax by 1%, for a new local rate of 2%.
  • Washburn will maintain its 2% city sales, use and gross receipts tax but will eliminate the Maximum Tax (Refund Cap) currently set at $25 per sale.
  • Wimbledon will extend the 1% city sales, use and gross receipts tax that was previously set to sunset on December 31, 2014.

Additional information is available on the Tax Commissioner website.


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