North Dakota Sales Tax and Use Tax
What is the North Dakota sales tax?
Taxes in North Dakota are destination-based, meaning the North Dakota sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.
To see a full breakout of North Dakota sales tax rates by state, county, city and special district, use our easy North Dakota sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate North Dakota sales tax totals.
What is the North Dakota use tax?
The North Dakota state use tax rate is the same as the state, county, city and special district rates.
If you reside in ND, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay North Dakota sales tax or use tax?
In general, a business must collect and remit all applicable North Dakota sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
North Dakota says that an out-of-state seller is required to collect tax if they can be defined as "retailers maintaining a place of business". North Dakota has certain additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in North Dakota, you can usually get free help by contacting the North Dakota State Tax Commission. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in North Dakota. Click here for listing of recommended resources.
Special rules applying to North Dakota sales tax and use taxes
- Shipping is taxable.
- Finance charges are exempt from sales tax, when stated separately.
- Clothing is taxed at the same rate as the general sales tax.
- North Dakota Sales tax holidays are not planned for this state .
Since North Dakota legislators can vote to change the North Dakota sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of ND state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of North Dakota sales tax jurisdictions.