State guide · ND
North Dakota sales tax and property tax
A plain 5% state rate with local caps on big purchases, and a property tax credit that every homeowner can claim, whatever their age or income.
Facts read on official North Dakota pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 5%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $2,550
- Effective property rate
- 0.96% · #20 of 51
North Dakota charges a 5% state sales tax on most retail sales, and cities and counties add their own sales and use taxes, which the Office of State Tax Commissioner collects for them. A few goods have their own gross receipts rates: 7% on alcohol and 3% on new farm machinery and new mobile homes. Groceries for home and prescription drugs are exempt; candy, soft drinks, prepared food, over-the-counter medicine and clothing are taxed. Property tax is mid-range: the median owner paid $2,550 in 2024 on a $266,100 home (Census ACS), an effective rate of 0.96%, ranked 20 of 51. Since the 2025 session's HB 1176, the state's Primary Residence Credit pays up to $1,600 a year toward the tax on any owner-occupied home, with no age or income test. Owners apply online between January 1 and April 1, and the credit shows up on the December statement.
Total to pay
$105.00
Sales tax $5.00 · 5% of the price
| Price before tax | $100.00 |
| State tax · 5% | $5.00 |
| Local tax · 0% | $0.00 |
| Total | $105.00 |
Rule applied: general state rate. Exact local rate for an address: North Dakota rate lookup. How this is calculated.
Sales tax in North Dakota
The local layer is administered by the state but chosen locally. Cities and counties levy sales and use taxes and can add lodging, restaurant and car rental taxes, with local lodging tax capped at 2%. The North Dakota quirk is the refund cap: some cities and counties set a maximum local tax per purchase, so a buyer who paid local tax above that ceiling on a large invoice can claim the excess back within three years. Rate changes start only on the first day of a calendar quarter and are posted 60 days ahead, and the Tax Commissioner's rate lookup gives the exact combined rate for an address.
The special rates follow the state's economy. New farm machinery used only for agricultural production pays a 3% gross receipts tax instead of 5%, so a $250,000 combine owes $7,500 rather than $12,500. Alcohol pays 7%. Cars pay a separate 5% motor vehicle excise tax, and rental cars carry 5% plus a 3% surcharge on the fee.
Some exemptions are narrower than visitors expect. Churches, charities and nonprofits pay sales tax on their purchases, except bibles, hymnals and religious textbooks bought by churches. Bottled water is exempt as food, but sweetened water is a taxable soft drink, as are fruit drinks with 50% juice or less. Montana residents can buy tax free in North Dakota on a single purchase of $50 or more taken out of the state for use there. Remote sellers collect once their sales into the state pass $100,000 in a year, and goods brought in untaxed, or taxed at a lower rate elsewhere, owe use tax.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 5% | yes | State sales tax of 5% for most retail sales; gross receipts tax rates of 7% on alcohol and 3% on new farm machinery and new mobile homes. Cities and counties may add local sales and use taxes. |
| Groceries (food for home) | 0% | no | Food and food ingredients for home consumption are exempt; prepared food, candy, chewing gum and soft drinks (including fruit drinks with 50% or less juice) are taxable. |
| Clothing | 5% | yes | Clothing is taxable tangible personal property. |
| Prescription drugs | 0% | no | |
| Alcohol | 7% | Gross receipts tax rate. | |
| New farm machinery used exclusively for agricultural production | 3% | Gross receipts tax rate. | |
| New mobile homes | 3% | Gross receipts tax rate. | |
| Motor vehicles | 5% | Motor vehicle excise tax on the taxable purchase price, separate from the sales tax. | |
| Motor vehicle rentals | 5% | 5% sales tax plus a 3% rental surcharge on the rental fee. |
Local sales taxes
Levied by cities and counties (sales and use taxes, plus special lodging, lodging and restaurant, and motor vehicle rental taxes), administered by the Office of State Tax Commissioner. Certain cities and counties set a maximum local tax per purchase (refund cap): tax paid above it can be refunded within three years. Local lodging tax may not exceed 2%. Find the exact combined rate for an address with the official North Dakota lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
No 2026 sales tax holiday was found on the official North Dakota pages read on October 5, 2026.
Worth knowing about North Dakota sales tax
- Residents of Montana can buy tax-free in North Dakota on a single purchase of $50 or more that is taken out of the state for use exclusively outside it. source
- Over-the-counter drugs bought without a prescription are taxable; prescription drugs and medical oxygen sold on prescription are exempt. source
- North Dakota does not exempt churches, charities or non-profits from sales tax on their purchases; bibles, hymnals and religious textbooks bought by churches are exempt. source
- New local taxes and local rate changes take effect only on the first day of a calendar quarter and are posted 60 days in advance. source
- Bottled water is exempt as food, but water with natural or artificial sweeteners is a taxable soft drink. source
- Remote sellers must collect state and local tax once their taxable sales into North Dakota exceed $100,000 in the current or previous calendar year. source
Property tax in North Dakota
Counties run property tax in North Dakota: they collect it and pass the money to cities, townships, school districts and other districts, while the State Tax Commissioner assesses railroads, pipelines and utilities directly. Assessed value is 50% of market value for all real property, and property is classed as residential, commercial or agricultural, with farmland valued from soil surveys and use. Mills are applied to the resulting taxable value.
At the Census ratio of 0.96%, a $300,000 house would pay about $2,874 a year before credits. The Primary Residence Credit then takes up to $1,600 off, which would leave about $1,274, and paying the bill in full by February 15 earns a further 5% discount. The tax is due January 1 after the year of assessment and can be paid without penalty until March 1. The credit is applied for online at tax.nd.gov/prc between January 1 and April 1 and appears as a deduction on the statement mailed in December. It covers houses, condos, townhomes, duplexes and mobile homes; owners of mobile homes on leased lots, who pay in advance, see a 2026 approval on their 2027 tax.
Older and disabled owners can stack it with the Homestead Property Tax Credit: with income of $40,000 or less, taxable value is cut 100% up to $9,000 (about $200,000 of true and full value), and between $40,001 and $70,000, by half. Veterans with a service-connected disability of 50% or more have a credit in proportion to the rating. Both are filed with the local assessor by April 1, and the Primary Residence Credit then applies to any tax that remains.
Property tax on a home in North Dakota
Typical bill per year
$2,549
| Per month | $212 |
| Median effective rate in North Dakota | 0.96% |
| Median bill paid | $2,550 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | North Dakota |
|---|---|
| Median home value (owner-occupied) | $266,100 |
| Median real estate taxes paid | $2,550 |
| with a mortgage | $2,946 |
| without a mortgage | $2,108 |
| Effective rate (tax ÷ value) | 0.96% |
| Rank by effective rate (1 = highest) | 20 of 51 |
| Rank by median bill | 32 of 51 |
How the taxable value is set
Assessed value of all real property equals 50% of market value; property is classed as residential, commercial or agricultural (agricultural land valued from soil surveys and use). The tax is set by mills (tax rate) applied to taxable value. Who levies the tax: local: counties determine and collect real property taxes and distribute them to the county, cities, townships, school districts and other taxing districts; railroads, pipelines and utilities are centrally assessed by the State Tax Commissioner.
Payment calendar: Real property tax is due January 1 following the year of assessment and payable without penalty until March 1; a 5% discount applies if paid in full by February 15.
Other property tax relief
- Homestead Property Tax Credit. Owners 65+ or permanently and totally disabled with income up to $70,000: taxable value reduced 100% (max $9,000, i.e. $200,000 of true and full value) if income is $40,000 or less, 50% (max $4,500 / $100,000) between $40,001 and $70,000. Apply to the local assessor by April 1. source
- Disabled Veteran's Property Tax Credit. For veterans with a service-connected disability of 50% or more (or paid at the 100% rate); credit proportional to the disability, combined credits of a married couple capped at 100% or $9,000 of taxable value. Apply by April 1. source
Worth knowing about North Dakota property tax
- Paying the full real property tax bill by February 15 earns a 5% discount. source
- A homeowner already receiving the Homestead or Disabled Veteran credit can also get the Primary Residence Credit on any remaining tax. source
- HB 1176 (2025 session) amended the primary residence credit, created a legacy property tax relief fund and a limitation on property tax levies without voter approval. source
- Mobile home owners on leased lots pay property tax in advance, so a Primary Residence Credit approved in the January-April 2026 window applies to their 2027 tax. source
- Approved Primary Residence Credits appear as a deduction on the property tax statement mailed in December. source