ND North Dakota State sales tax rates

STATEWIDE SALES TAX RATE

ECONOMIC SALES THRESHOLD

$100,000

TRANSACTIONS THRESHOLD

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Do you need to collect sales tax in North Dakota?

You’ll need to collect sales tax in North Dakota if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.

Do you have physical nexus in North Dakota?

North Dakota considers a seller to have physical nexus if you have any of the following in the state:

A temporary or permanent office or place of business
An employee or agent
Leasing or renting tangible personal property

Do you have economic nexus in North Dakota?

Effective October 1, 2018, North Dakota considers vendors who make more than $100,000 in sales in the state in the previous or current calendar year to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.

Is what you’re selling taxable?

Tangible products are taxable in North Dakota, with a few exceptions. These exceptions include certain groceries, prescription medicine and medical devices, and machinery and chemicals used in agriculture. Excise tax may also applicable to the sale of motor vehicles and aircraft. More information on the excise tax and use taxes, consult the North Dakota state site.

Many services are also taxable with some exceptions. Check out this document for information about which services are taxable and tax exempt in North Dakota.

Is SaaS taxable in North Dakota?

SaaS is non-taxable in North Dakota.

Collecting Sales Tax

North Dakota is a destination-based sales tax state. So no matter if you live and run your business in North Dakota or live outside North Dakota but have nexus there, you would charge sales tax at the rate of your buyer’s ship-to location. The North Dakota sales tax rate is 5%.

Should you collect sales tax on shipping charges in North Dakota?

Shipping charges are generally taxable in North Dakota.

When are Returns Due?

When you file and pay North Dakota sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in North Dakota?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In North Dakota, you will be required to file and remit sales tax either monthly, quarterly, semiannually or annually.

North Dakota sales tax returns are always due the last day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.