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 and marketplace payouts usually show only the tax-included total, so separating revenue from tax collected — for bookkeeping, expense reports, or checking what an item costs before North Dakota's tax is applied — means working backward from that total. Dividing by (1 + rate) isn't the same as subtracting the rate, which is why the calculator above handles it exactly.
North Dakota Taxability at a Glance
🛒 Groceries
Exempt
👕 Clothing
Taxable
💊 Prescription drugs
Exempt
How North Dakota Fits Into the US Sales Tax System
The United States has no federal sales tax — unlike VAT/GST countries where a national rate applies everywhere, US sales tax is set entirely at the state level, and each of the 50 states (plus DC) independently decides whether to levy one, what the rate is, and what's exempt. North Dakota is one of the 45 states (plus DC) that levies a general sales tax. States can also authorize cities, counties, and special districts to add their own local rate on top of the state rate — which is why the "combined rate" shown on this page is a blend, not a single fixed number, and why it can differ from the state rate alone by several percentage points depending on the exact delivery address.
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.
Key terms: combined rate — state rate plus applicable local add-ons; reverse sales tax — working backward from a tax-included total via total ÷ (1 + rate); economic nexus — a sales threshold that obligates an out-of-state seller to collect tax without a physical presence; marketplace facilitator — a platform that remits tax on behalf of third-party sellers.
Real-World Example: Adding Tax to a Price
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
Real-World Example: Extracting Tax From a Receipt Total
A receipt shows a $749.99 tax-included total in North Dakota at the average combined rate of 7.09%:
- Pre-tax price: $749.99 ÷ (1 + 7.09%) = $700.34
- Tax amount: $749.99 − $700.34 = $49.65
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
Methodology: the combined rate shown is the state rate plus the population-weighted average of local (city/county/district) rates reported by the Tax Foundation for 2026; it is an average, not the exact rate for any single address — use the county table above where available, or confirm the exact local add-on with the North Dakota Department of Revenue, for a specific delivery address. Economic nexus thresholds are sourced from the Sales Tax Institute's Economic Nexus State Guide.
Rates last verified January 2026. North Dakota sales tax rates and thresholds change over time — 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 AuthorPersonal Finance Content Strategist
Jordan is a personal finance content strategist with 9+ years writing about mortgages, retirement, tax strategy, and budgeting. Every guide is cross-referenced with IRS publications, Federal Reserve data, and CFPB guidance to make complex calculations accessible. Editor at CalculatorApp.me.
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Tax-rate data, review & limitations
Jurisdiction: North Dakota, United States. Effective date: January 1, 2026. Reviewed by CalculatorApp.me editorial staff on July 26, 2026; next scheduled review: October 26, 2026.
Rates are reference estimates, not tax advice. Local rules, exemptions, filing status, and effective dates can change the amount due.
Primary sources
- Tax Foundation, 2026 State and Local Sales Tax Rates
- Relevant state department of revenue guidance