What is the sales tax in Fargo, ND?

Fargo's combined rate is 7.75%: the 5% state rate, a 2.25% city tax and a 0.5% Cass County tax. Fargo also caps the local tax on a single purchase, so a buyer who pays more local tax than the cap on a big-ticket item can ask the Tax Commissioner for a refund of the excess within three years. West Fargo's combined rate is 8%.

Is food taxed in North Dakota?

Groceries are exempt. The exemption leaves out alcoholic beverages, candy and chewing gum, dietary supplements, prepared food, soft drinks with 50% or less fruit juice, and tobacco, so those are taxed. Restaurant meals are taxable, and some cities add a 1% lodging and restaurant tax. Children's diapers are also exempt.

Does North Dakota charge for a sales tax permit?

No fee is charged for a new permit; the law only sets fees to reissue a revoked permit: $50, or $5 if it was revoked for four straight quarters of zero returns. Apply on ND TAP at least 30 days before you open. You need a permit for each place of business, it must be displayed, and it can't be transferred to a new owner.

When are North Dakota sales tax returns due?

Returns are due on the last day of the month after the reporting period, for monthly, quarterly, semi-annual and annual filers alike. The Tax Commissioner sets your frequency when you apply. If you file and pay on time, you keep 1.5% of the tax due, up to $110 per return. You must file even if no tax is due.

Do remote sellers have to collect North Dakota sales tax?

Yes, once their sales of taxable items delivered into North Dakota exceed $100,000 in the current or previous calendar year. There's no transaction-count test. A seller that crosses the line must get a permit and start collecting on the earlier of January 1 of the next year or 60 days after crossing it. Marketplace facilitators follow the same threshold.

Are services taxable in North Dakota?

Most aren't. Repair labor that is listed separately on the invoice isn't taxed, though the parts are. Taxable services include hotel and other lodging stays under 30 days, and admissions to recreational activities. Hotel valet, laundry and childcare services aren't taxable.

Sales tax

North Dakota Sales Tax in 2026: 5% State Rate, Local Rates, Permits and Filing

North Dakota sales tax 2026: the 5% state rate, city totals up to 8.25%, the local tax refund cap, grocery and lodging rules, the free permit and examples.

Edited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources

Updated October 2026 Verified against official sources 12 October 2026 17 min read

North Dakota sales tax — MSMETOOLS guide cover

Contents (11)

1. How North Dakota's sales tax works
2. Local rates in the main cities
3. Food, restaurants and what's exempt
4. Services, repairs and delivery charges
5. Hotels, vacation rentals and lodging taxes
6. Worked examples in dollars
7. Getting a sales and use tax permit
8. Filing returns, compensation and penalties
9. Remote sellers and marketplaces
10. Common mistakes and how to fix them
11. What to do next

North Dakota's sales tax starts with a flat 5% state rate and then layers on city and county taxes that change almost every quarter somewhere in the state. Minot raised its city rate on October 1, 2026, and Fargo, Mandan and Bismarck-area rates have all moved since 2024. North Dakota also has a feature few states share: many cities and counties cap the local tax on a single purchase, and buyers can claim back anything paid above the cap. This guide is for retailers, restaurants, hotels, farm equipment dealers and online sellers who need the 2026 rules with dollar examples. We checked each figure against the Office of State Tax Commissioner in October 2026.

Quick answer

North Dakota's state sales tax rate is 5%. Local city and county taxes bring combined rates in the larger cities to 7.25%–8.25%: Fargo is 7.75%, Bismarck, West Fargo and Minot are 8%. Alcohol is taxed at 7%, and new farm machinery and new mobile homes at 3%.

Groceries and children's diapers are exempt; candy, soda and prepared food are taxed
Delivery charges on taxable goods are always taxable
The permit is free; apply on ND TAP 30 days before opening
Returns are due the last day of the following month; timely filers keep 1.5%, up to $110
Remote sellers register after $100,000 of sales into the state

How North Dakota's sales tax works

North Dakota's tax has two parts, as the Tax Commissioner describes it. The state part is a 5% sales tax on most retail sales of tangible personal property and a short list of services, including hotel stays under 30 days and admissions to recreational activities. Alongside it sits a gross receipts tax on three categories: alcoholic beverages at 7%, and new farm machinery and irrigation equipment used only for agriculture at 3%. New manufactured homes carry a 3% sales tax rate; used ones are exempt.

The local part comes from cities and counties. They may levy sales, use and gross receipts taxes, and also special taxes on lodging, on lodging and restaurant sales, and on car rentals at airports. The Tax Commissioner administers almost all of them for the local governments, so a retailer reports state and local taxes on one return. New local taxes and changes take effect only on the first day of a calendar quarter, and the office posts them at least 60 days ahead.

The rate follows the buyer. Local tax is based on where the customer takes possession of the item, so a Bismarck store charging its own rate on a counter sale charges the Mandan rate when it delivers to a customer there.

Use tax completes the system. A business that buys equipment, office supplies or shop materials without paying North Dakota tax owes use tax at the combined state and local rate for the place of use. Goods first bought for use elsewhere and later brought into North Dakota owe use tax on their fair market value when they arrive, less any tax paid to the other state at a lower rate.

North Dakota sales tax at a glance (2026)

State rate

7.75%

Fargo combined rate

Bismarck, West Fargo, Minot

Alcoholic beverages

$100,000

Remote seller threshold

Local rates in the main cities

The Tax Commissioner's Local Taxes by Location Guideline lists every city and county tax in force. The table below adds the state rate to the city and county taxes in effect on October 1, 2026, for the state's largest cities. Smaller cities range from no local tax to 3% or more, so always use the rate lookup on ND TAP for an exact address.

City	City tax	County tax	Combined rate
Fargo	2.25%	Cass 0.5%	7.75%
West Fargo	2.5%	Cass 0.5%	8%
Bismarck	2%	Burleigh 1%	8%
Grand Forks	2.25%	None	7.25%
Minot (from Oct 1, 2026)	2.5%	Ward 0.5%	8%
Mandan	2.25%	Morton 1%	8.25%

Recent changes show how often rates move. Minot added a half-cent on October 1, 2026, taking its city tax to 2.5% and its combined rate to 8%. Fargo added a quarter-cent on April 1, 2025, Mandan a half-cent on January 1, 2025, and Morton County a half-cent on April 1, 2025. Burleigh County's tax rose to 1% on October 1, 2024. Subscribe to the Tax Commissioner's email updates under "Sales & Special Taxes" and update your systems before each quarter.

The local tax refund cap

Many North Dakota cities and counties set a maximum local tax on a single purchase, which the guideline calls a refund cap. The retailer still charges the full local rate at the register. The buyer can then ask the Tax Commissioner to refund the local tax paid above the cap, as long as the sale was taxed correctly, the request is made within three years of the receipt date, and a copy of the receipt is attached. Requests are filed on ND TAP. The cap applies only to local tax; the 5% state tax is never capped.

Fargo's cap is $56.25 a sale for its 2.25% tax, which matches the tax on $2,500, and Cass County's is $12.50 for its 0.5% tax. Minot raised its cap to $150 a sale on October 1, 2026. Caps differ by city, and some cities have none, so check the guideline for the exact amount.

Brick commercial buildings and water towers on North Broadway in downtown Fargo — Fargo's combined rate is 7.75%, but its local tax on a single purchase is capped, so big-ticket buyers can claim part of it back.· Image: Bjoertvedt (CC BY-SA 3.0)

Food, restaurants and what's exempt

Groceries are exempt in North Dakota. The exemption covers food and food ingredients but leaves out alcoholic beverages, candy and chewing gum, dietary supplements, prepared food, soft drinks containing 50% or less fruit juice, and tobacco. Those excluded items are taxed at the full combined rate, or 7% plus local tax for alcohol. A grocery cart of meat, produce, bread and milk carries no tax, but the candy bar and the bottle of soda at the checkout do.

Restaurant meals are prepared food and taxable. Many cities add a 1% lodging and restaurant tax on restaurant meals, on-sale drinks and hotel rooms; Bismarck's dates from 1987. These local lodging and restaurant taxes have no special exemptions and no compensation allowance, and they're reported on a separate return from sales tax.

Other common exemptions on the Tax Commissioner's list include children's diapers, prescription drugs, oxygen and insulin, mobility-enhancing equipment, electricity, natural gas and other fuels used for heating, electronically delivered movies, books and music, coin-operated amusement machines, lottery tickets, and textbooks for students. Sales to the federal and state governments, local governments and tribal government agencies are exempt.

North Dakota is stricter than many states on nonprofits. The law doesn't exempt religious, charitable or nonprofit organizations in general, so a church pays tax on most purchases, though Bibles, hymnals and prayer books it buys are exempt. Exempt buyers are limited to listed groups, such as public and private nonprofit schools, licensed hospitals and nursing homes, and qualifying voluntary health and senior citizen organizations.

Shoppers from Montana, which has no general sales tax, get a special exemption. A Montana resident or Montana-owned business making a purchase of $50 or more that it takes out of North Dakota for use elsewhere can buy tax-free by completing the state's Montana exemption certificate.

Is it taxable in North Dakota?

Sale	Rate	Why
Clothing, furniture, electronics	5% + local	Tangible goods
Groceries	Exempt	Food and food ingredients
Candy, soda, supplements	5% + local	Excluded from the food exemption
Restaurant meal	5% + local + any 1% L&R tax	Prepared food
Beer, wine, liquor	7% + local	Gross receipts tax
New combine or tractor for farming	3%	Farm machinery gross receipts tax
Itemized repair labor	Not taxed	Repair service
Hotel room, under 30 days	5% + local + any lodging taxes	Lodging
Delivery charge on a taxable sale	Taxed	Part of the selling price

Clothing, furniture, electronics

Rate: 5% + local
Why: Tangible goods

Groceries

Rate: Exempt
Why: Food and food ingredients

Candy, soda, supplements

Rate: 5% + local
Why: Excluded from the food exemption

Restaurant meal

Rate: 5% + local + any 1% L&R tax
Why: Prepared food

Beer, wine, liquor

Rate: 7% + local
Why: Gross receipts tax

New combine or tractor for farming

Rate: 3%
Why: Farm machinery gross receipts tax

Itemized repair labor

Rate: Not taxed
Why: Repair service

Hotel room, under 30 days

Rate: 5% + local + any lodging taxes
Why: Lodging

Delivery charge on a taxable sale

Rate: Taxed
Why: Part of the selling price

Services, repairs and delivery charges

North Dakota taxes few services. The Repair Services Guideline is clear that repairing, altering or restoring someone else's property is a service and isn't taxable, but the parts and materials used are. Billing method matters. If the invoice itemizes parts and labor, the repairer charges sales tax on the parts only. If the invoice is a lump sum, the repairer pays tax on the cost of the parts itself and charges no tax to the customer. A repair business must use the same method consistently. Work that becomes part of real property, such as plumbing in a building, follows the contractor rules: the contractor is the end user of the materials and pays tax when buying them.

Delivery charges work the opposite way from Wyoming. Since October 1, 2005, freight, delivery, shipping and handling, and setup charges have always been part of the selling price in North Dakota. If the item is taxable, so is the delivery charge, whether or not it's listed separately; if the item is exempt, so is its delivery. Only a delivery company hired and billed directly by the customer, which isn't selling the goods, charges no tax. Goods a North Dakota retailer delivers to a customer in another state aren't subject to North Dakota tax, but keep proof of delivery.

Farm equipment has its own rules. New farm machinery and irrigation equipment used only for agriculture pay the 3% gross receipts tax instead of sales tax, and the value of used farm machinery traded in isn't included. Farm machinery repair parts are on the Tax Commissioner's exemption list, while tires, fluids, lubricants and shop tools are not farm machinery and are taxed normally.

A combine unloading harvested wheat into a grain truck in a ripe wheat field — New farm machinery used only for agriculture pays a 3% gross receipts tax in North Dakota instead of the 5% sales tax.· Image: NRCS Montana (Public Domain Mark 1.0)

Hotels, vacation rentals and lodging taxes

Rentals of accommodations for fewer than 30 consecutive days are subject to state and local sales tax. The Hotels, Motels and Lodging Facilities Guideline lists hotels, motels, resorts, campgrounds renting cabins or campers, hunting cabins, man camps, rooming houses, and residential short-term and vacation home rentals as lodging facilities. Banquet, meeting and conference rooms and swimming facilities are accommodations too.

Fees tied to the stay are taxed as part of the rent: extra person, crib and roll-away, early or late departure, no-show, pet, reservation, room damage, smoking, transfer, in-room safe and audio-visual fees. Valet, laundry and childcare services aren't taxable. A guest who stays 30 or more consecutive days is exempt from sales and lodging taxes, but any break in the stay resets the count, and the hotel must keep records to prove it.

On top of sales tax, cities and counties may levy a lodging tax of up to 2% and a lodging and restaurant tax of 1%. Bismarck has both. Fargo, Grand Forks, Minot, Valley City and West Fargo have lodging taxes that they administer themselves, so hotels in those cities file with the city as well as the state.

Worked examples in dollars

A Fargo electronics store. A customer buys a $500 television. At 7.75%, tax is $38.75, for $538.75.

A big-ticket purchase and the refund cap. A Fargo buyer pays $5,000 for a home theater system. The store charges 7.75%: $250.00 state tax, $112.50 city tax and $25.00 county tax, $387.50 in all. Fargo's cap is $56.25 and Cass County's is $12.50, so the buyer can claim back $56.25 of city tax and $12.50 of county tax, $68.75, through ND TAP with the receipt.

A Bismarck hotel stay. Two nights at $130 come to $260. Sales tax at 8% is $20.80, plus Bismarck's 2% lodging tax and 1% lodging and restaurant tax, another $7.80. Total tax is $28.60.

A grocery run in Grand Forks. A shopper buys $120 of groceries, a $3 candy bar and a $4 bottle of soda. The groceries are exempt. The candy and soda, $7, are taxed at 7.25%: $0.51.

An auto repair in Minot. The invoice itemizes $280 of parts and $200 of labor. Tax applies to the parts only: at 8%, $22.40. A lump-sum invoice would carry no tax for the customer; the shop pays tax on its parts cost instead.

A furniture delivery. A West Fargo store sells a $1,200 couch and charges $80 to deliver it in town. Both are taxed at 8%: $102.40.

Try it — Fargo sales tax on $500

Purchase AmountState

Local / County Rate

Purchase Amount$500.00

State Tax (6.25%)$31.25

Local Tax (2%)$10.00

Combined Rate8.25%

Total Amount (Including Tax)$541.25

Open the full Sales Tax Calculator (PDF, save, compare)

Getting a sales and use tax permit

Anyone selling taxable goods, admissions to recreational activities or lodging in North Dakota needs a sales and use tax permit, and the Tax Commissioner asks you to apply at least 30 days before you open. The application is on ND TAP, the state's online portal. A new permit is free: the law sets a fee only to reissue a permit that was revoked, $50, or $5 if the revocation was for filing four straight quarters of zero returns.

You need a permit for each place of business, and it must be displayed there. A permit can't be transferred, so if you buy an existing business you apply for a new one. Transient merchants who sell from vehicles or temporary sites must show their permit to customers before soliciting a sale.

To buy inventory tax-free for resale, give your supplier the Streamlined Sales Tax Certificate of Exemption, the Multistate Tax Commission uniform certificate or North Dakota's own resale certificate. Manufacturers use a Certificate of Processing and contractors a Contractor's Certificate where they qualify. Sellers should refresh certificates at least every two years and keep them on file; they aren't sent to the state. Keep all records for three years and three months. Our resale certificate guide covers good-faith acceptance.

Getting set up in North Dakota

1
Apply on ND TAP
Apply for a free sales and use tax permit at least 30 days before your first sale.
Open ND TAP
2
Look up your local rates
Use the ND TAP rate lookup for each delivery address and recheck every quarter.
3
Register for local lodging taxes if needed
Hotels in Fargo, Grand Forks, Minot, Valley City and West Fargo also file with the city.
4
File by month-end
Pay on time to keep 1.5% of the tax, up to $110 a return.

Filing returns, compensation and penalties

The Tax Commissioner assigns a monthly, quarterly, semi-annual or annual filing frequency when you apply, based on how often you make sales, and you can ask to change it. Every return is due on the last day of the month after the period ends; a deadline on a weekend moves to the next business day. In 2026, for example, quarterly returns for the third quarter are due November 2 because October 31 falls on a Saturday. Since January 1, 2023, the state no longer mails paper returns, so file and pay on ND TAP. Permit holders must file every period, even with no tax due.

North Dakota pays retailers to collect. Under N.D.C.C. § 57-39.2-12.1, a retailer that files and pays on time deducts 1.5% of the tax due, up to $110 per return. A retailer owing $5,000 for a quarter keeps $75; one owing $10,000 hits the cap. Some cities pay their own compensation on local tax, which the guideline lists city by city.

Late returns cost 5% or $5, whichever is greater, plus 5% a month up to 25% of the tax due. Late payment carries a penalty of 5% or $5, whichever is greater. Interest runs at 12% a year from the deadline, though it isn't charged for the first month a return is late. Continued failure to file can lead to an estimated assessment, a lien on your property or revocation of your permit.

North Dakota sales tax dates (2026)

Last day of each month

Monthly return and payment due for the prior month

April 30, July 31, Nov 2

Quarterly returns due for Q1, Q2 and Q3

July 31

Semi-annual return due for the first half

October 1, 2026

Minot city tax rises; combined rate 8%

60 days before each quarter

New local rates posted

Remote sellers and marketplaces

Under N.D.C.C. § 57-39.2-02.2, a seller with no physical presence must get a permit and collect once its gross sales of taxable items delivered into North Dakota exceed $100,000 in the previous or current calendar year. North Dakota has no transaction-count test. The start date is set by law: the seller begins collecting on sales delivered from January 1 of the next year or 60 days after crossing the threshold, whichever comes first. A seller that crosses $100,000 on August 1 must collect from September 30.

Marketplace facilitators are subject to the same threshold and timing and collect on sales they facilitate. Remote sellers charge the state rate plus the local rate for the delivery address, and the local refund caps work the same way for their customers. Compare thresholds in our economic nexus guide.

Common mistakes and how to fix them

Using last quarter's rates. Local rates change on quarter starts. Minot's rose on October 1, 2026. Recheck the guideline every quarter.

Leaving delivery charges untaxed. On taxable goods, shipping and delivery are always taxable in North Dakota, even when itemized.

Charging tax on itemized repair labor. Labor is exempt when listed separately; only the parts are taxed.

Treating nonprofits as exempt. Most nonprofits and churches pay tax unless they're on the state's list of exempt organizations.

Missing city lodging taxes. Hotels in five cities also file with the city. Check before you open.

Paying late and losing compensation. The 1.5% allowance applies only when the tax is paid on time.

Official links

What to do next

Apply for a free permit on ND TAP, look up the local rates for every place you deliver, and add a reminder for each quarter's rate changes. Set your invoices to tax delivery charges and to itemize repair labor. File and pay by the last day of the month to keep up to $110 per return. Use the sales tax calculator to check receipts, our guide to calculating sales tax for tax-included prices, and our use tax guide for untaxed purchases. Selling across the region? Compare our South Dakota, Minnesota and Wyoming guides.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

The state rate is 5%. Many cities and a few counties add local sales taxes, so the combined rate depends on where the buyer receives the item. As of October 1, 2026, Fargo is 7.75%, Bismarck, West Fargo and Minot are 8%, Grand Forks is 7.25% and Mandan is 8.25%. Alcohol is taxed at 7% instead of 5%.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1.Sales and Use Tax — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
2.Local Taxes by Location Guideline (rates effective October 1, 2026) — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
3.Local Taxes - City and County Taxes — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
4.Sales Tax Exemptions & Incentives — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
5.Sales, Use, and Gross Receipts Tax Requirements Guideline — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
6.Repair Services Guideline — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
7.Hotels, Motels, and Lodging Facilities Guideline — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
8.Sales and Use Tax Deadlines — North Dakota Office of State Tax Commissioner · accessed 12 October 2026
9.N.D.C.C. chapter 57-39.2 (§§ 57-39.2-02.2, 57-39.2-12.1, 57-39.2-14) — North Dakota Legislative Branch · accessed 12 October 2026

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