How North Dakota Sales Tax Works
North Dakota's state government imposes a 5.00% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 7.04% statewide.
North Dakota's 5% state rate is among the lowest in the upper Midwest, with most cities adding 1-3% on top.
Groceries in North Dakota
North Dakota exempts unprepared groceries from sales tax.
How North Dakota Compares to Neighboring States
Sales tax on a $1,000.00 purchase in North Dakota versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. North Dakota |
|---|---|---|---|---|
| North Dakota (here) | 5.00% | 7.04% | $70.40 | — |
| Minnesota | 6.88% | 8.05% | $80.50 | +$10.10 |
| South Dakota | 4.20% | 6.11% | $61.10 | -$9.30 |
| Montana | None | None | $0.00 | -$70.40 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the North Dakota sales tax rate for 2026?
North Dakota's state sales tax rate is 5.00% for 2026. When combined with the average local sales tax of 2.04%, most North Dakota residents pay a typical combined rate of 7.04%.
How much sales tax will I pay on a $100 purchase in North Dakota?
On a $100 purchase, expect approximately $5.00 in state sales tax, or about $7.04 including average local sales tax (combined 7.04%). Total cost: roughly $107.04.
Are groceries taxed in North Dakota?
North Dakota exempts unprepared groceries from sales tax.
Is sales tax calculated before or after discounts in North Dakota?
North Dakota follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this North Dakota sales tax estimate calculated?
The calculator applies North Dakota's 5.00% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with North Dakota's Department of Revenue tool.