State of North Dakota Sales Tax The 2014 North Dakota State Sales Tax

1.1 -
What is the 2014 North Dakota Sales Tax Rate?

North Dakota Sales Tax Rate

5.00%

2014 North Dakota state sales tax
Exact tax amount may vary for different items

The North Dakota sales tax rate is 5%, and the maximum ND sales tax after local surtaxes is 6.55%.

  • Groceries are exempt from the North Dakota sales tax
  • Counties and cities are not allowed to collect local sales taxes
  • North Dakota has 126 special sales tax jurisdictions with local sales taxes in addition to the state sales tax
  • North Dakota has a higher state sales tax than 57.7% of states

Counties and cities in North Dakota are allowed to charge an additional local sales tax on top of the North Dakota state sales tax. The local sales tax in the state capitol Bismarck, for example, is 1% for a total sales tax of 6%.

1.2 -
North Dakota Sales Tax Exemptions

North Dakota doesn't collect sales tax on purchases of most groceries. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Other items including gasoline, alcohol, and cigarettes are subject to various North Dakota excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The ND sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. North Dakota's sales tax rates for commonly exempted items are as follows:

Groceries: EXEMPT Clothing: 5% Prepared Food: 5% Prescription Drugs: 5% Non-Prescription Drugs: 5%
North Dakota sales tax for a restaurant meal
$100 Restaurant Dinner
North Dakota sales tax for groceries
$100 of groceries
North Dakota sales tax for clothing
$100 in clothes
North Dakota sales tax for general consumer products
$100 of consumer products
$5.00 sales tax
$105.00 total
$0.00 sales tax
$100.00 total
$5.00 sales tax
$105.00 total
$5.00 sales tax
$105.00 total

1.3 -
North Dakota Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the North Dakota sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a North Dakota Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a North Dakota state sales tax exemption certificate, which can be obtained from the North Dakota Office of State Tax Commissioner . On making an exempt purchase, Exemption Certificate holders may submit a completed North Dakota Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full North Dakota sales tax code) can be downloaded from the North Dakota Office of State Tax Commissioner 's website.

1.4 -
North Dakota Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed North Dakota retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our North Dakota sales tax calculator.

1.5 -
North Dakota Use Tax [View Main Article]

If you buy goods and are not charged the North Dakota Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 5% sales tax (less any foreign sales tax paid) for these items yourself as the North Dakota Use Tax.

Your are expected to voluntarily list your liable purchases on a North Dakota Use Tax Return, which should be attached with payment to your North Dakota Income Tax Return. Historically, compliance rates with with the North Dakota Use Tax have been low.

1.6 -
North Dakota Local Sales Taxes

North Dakota does not allow local jurisdictions like cities or counties to collect a local sales tax. The North Dakota state sales tax of 5% is applicable statewide. You can view the sales tax rates for various cities in North Dakota here.


Did you find what you were looking for?