North Dakota Sales Tax Calculator (2026) — Add or Reverse Tax
North Dakota's combined sales tax rate is 7.09% (5.00% state + 2.09% average local). Use the calculator below to add North Dakota sales tax to a price, or reverse a tax-included total to find the pre-tax price and exact tax amount.
How to use this calculator:
- Adding tax — enter a pre-tax price, pick "Add tax to price," and the calculator applies the North Dakota rate to show the tax amount and final total.
- Reversing (extracting) tax — enter a total that already includes tax, pick "Extract tax from total," and the calculator divides by 1 + the rate to isolate the pre-tax price and the exact tax paid.
- Pick the rate that matches your situation: the average combined rate is a good statewide estimate, but the state-only or maximum-local rate is more precise if you know the exact city or county.
Understanding North Dakota Sales Tax
North Dakota's state sales tax rate is 5.00%, and local jurisdictions add an average of 2.09% on top, bringing the typical combined rate to 7.09%. Rates vary by city and county — the highest combined rate in North Dakota can reach 8.75%.
North Dakota also levies a state income tax, which shapes how much the state relies on sales tax revenue relative to other funding sources.
Groceries
Exempt from North Dakota state sales tax.
Largest city
Fargo
State income tax
Yes
Why Reverse Sales Tax Calculation Matters
Receipts, invoices, and marketplace payouts usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping (separating revenue from tax collected), expense reports (reimbursing only the pre-tax cost), and price comparisons (checking what an item actually costs before North Dakota's tax is applied). Because dividing by (1 + rate) is not the same as simply subtracting the rate from the total, doing this by hand is a common source of errors — the calculator above handles it exactly.
North Dakota Taxability at a Glance
🛒 Groceries
Exempt
👕 Clothing
Taxable
💊 Prescription drugs
Exempt
History & Rate Breakdown
North Dakota's sales tax was enacted by voter referendum in 1935, originally at 2% and covering tangible personal property along with gas, electricity, water, and communication services. The rate has since risen to its current 5% state level.
North Dakota's 7.09% average combined rate layers the 5% state rate with municipal local option taxes (up to 3.75% in some cities) and additional special-district taxes, averaging 2.09% in local add-ons statewide.
Where the Money Goes
North Dakota's sales tax revenue supplements the state's substantial oil and gas severance tax collections from Bakken-region production, giving the state a broader revenue base than many comparably sized agricultural states.
Business Use Case: Registering & Collecting North Dakota Sales Tax
A retailer crossing North Dakota's $100,000 economic nexus threshold must register with the state Office of State Tax Commissioner and determine whether the buyer's specific city has adopted a local option tax on top of the 5% state rate, since adoption varies city by city.
Sales Tax Terms Glossary
Combined rate
The state sales tax rate plus any applicable local (city, county, or special district) rates — the actual rate charged at checkout in a given location.
Reverse sales tax
The process of working backward from a tax-included total to find the pre-tax price and the exact tax amount, using total ÷ (1 + rate) = pre-tax price.
Economic nexus
A sales threshold (in dollars, transaction count, or both) that obligates an out-of-state seller to collect and remit sales tax even without a physical presence in the state.
Marketplace facilitator
A platform (e.g. Amazon, Etsy, eBay) that collects and remits sales tax on behalf of third-party sellers under most states’ marketplace facilitator laws.
Real-World Example
A $500.00 purchase in North Dakota at the average combined rate of 7.09%:
- Tax amount: $500.00 × 7.09% = $35.45
- Total price: $500.00 + $35.45 = $535.45
North Dakota Sales Tax Compliance for Sellers
Remote and online sellers establish economic nexus in North Dakota once they exceed $100,000.00 in annual sales (no separate transaction-count test). Once nexus is established, a seller must register with the state, collect North Dakota sales tax at checkout, and file returns on the state's required schedule. Marketplace facilitators (Amazon, Etsy, eBay, Walmart) generally collect and remit on behalf of third-party sellers automatically.
Frequently Asked Questions — North Dakota Sales Tax
What is the sales tax rate in North Dakota?▾
Does North Dakota tax groceries?▾
Does North Dakota have a state income tax?▾
When do online sellers need to collect North Dakota sales tax?▾
How do I calculate North Dakota sales tax on a purchase?▾
How do I reverse North Dakota sales tax to find the price before tax?▾
What is the formula to back out sales tax from a receipt in North Dakota?▾
References & Sources
Rates last verified January 2026. North Dakota sales tax rates and thresholds can change — always confirm current figures with the North Dakota Department of Revenue before filing or invoicing. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorLead Content Editor & Personal Finance Specialist
Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.