Sales Tax and Reverse Sales Tax Calculator North Dakota

NORTH DAKOTA [Multidirectional Calculator]
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North Dakota – ND Sales Tax Calculator: User Guide

North Dakota is a US state, also known by the name of "The Legendary State." It is located in northern and the midwestern region of the United States. This state is the nineteenth largest in the area and fourth most sparsely populated with the fourth smallest by population among the 50 states.

The Great Plains dominates the Legendary State. It has many other awe-inspiring natural spots, delicious food, starry nights, amazing peoples, low taxes, abundant jobs, and stellar quality of life. All these aforementioned perks attract thousands of people to settle in the state every year to start their new life, career, or business.

If you are mulling over to start, expand, or relocate your business in North Dakota than you must be aware of ND Sales Tax.

Our experts have joined hands to bring you a comprehensive North Dakota Sales Tax Guide supported with a handy ND Sales Tax Calculator, which will make your business a lot easier to handle.

So let''s Explore!


North Dakota Sales Tax Facts:

  • The general sales tax rate levied on the state level in North Dakota is 5%. On top of it, several counties levy local sales tax rates ranging between 0% and 1%. Moreover, numerous cities and municipalities also levy an additional local sales tax rate ranging from 0% to 3%. All these tax combined raises the sales tax rate by up to 8.5%.
  • Parshall, North Dakota, is among cities that collect the lowest possible combined sales tax rate of 5%.
  • Tioga, North Dakota, is among cities that collect the highest possible combined sales tax rate of 8.5%.
  • The average combined sales tax rate in North Dakota is 5.7%.
  • 7% of states in the US chargest lower sales tax than North Dakota.
  • 7% of the sales tax is charged on alcoholic beverages sold for consumption either on or off the premises.
  • New mobile homes and new farm machinery and new irrigation equipment (used exclusively for agricultural purposes) are subjected to specially reduced sales tax rate of 3%.
  • Groceries (not prepared food), medical devices, bibles, newspapers, diabetic equipment, prescription drugs, electricity, water, and textbooks are among products that are exempted from North Dakota Sales Tax.
  • Motor vehicles are only subjected to North Dakota State-wide sales tax of 5% and no local sales tax.
  • Almost all tangible personal property includes most consumer products and household goods, as well as specific services, including communications services, deliveries, and construction or assembly of a taxable item, are subject to North Dakota Sales Tax.
  • Items purchased for resale, improvement, or as raw materials by individuals and companies can be exempted from ND sales tax using North Dakota Sales Tax Exemption Form.
  • Product purchased for use in North Dakota from online or out-of-state sellers without paying ND Sales tax is supposed to be subjected to North Dakota Use Tax of the equivalent rate of 5% plus local sales tax, depending on the location of the product being used within North Dakota.

How to calculate Sales Tax in North Dakota?

Businesses and Sellers who have Nexus with ND are required to pay Sales tax to North Dakota (state and local) on the gross receipts from retail sales of almost all tangible personal property includes most consumer products and household goods as well as certain services including communications services, deliveries, and construction or assembly of a taxable item of taxable items.

They are required to collect, manage, and transfers it to the Office of State Tax Commissioner, North Dakota, while staying in compliance with state laws and avoid penalties and interest.

The sales tax determined on four factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with nexus.
  2. Seller's Eligibility: Seller is only required to register, collect, and remit the sales tax to the authorities in the state if it falls under the criteria provided by the state.
  3. Location and Products or Services: The sales tax rate varies from product to product and location to location. You must check the sales tax rate applicable to your product according to the product category, county, and city in North Dakota.
  4. Exemptions: Almost all goods are eligible for sales tax regulation. However, products, including Groceries (not prepared food), medical devices, bibles, newspapers, diabetic equipment, prescription drugs, electricity, water and textbooks, and few more, are exempted under North Dakota Law. So you should check with the North Dakota state government as to which goods and services sold in North Dakota are subject to sales tax.

To calculate Sales Tax in North Dakota, follow the steps below:

Step 1 – Determine your Nexus:

As a business owner, you are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the North Dakota State. And to determine your Nexus in North Dakota, you must have any of the following:

  • A temporary or permanent physical location like office, warehouse, retail store, or other business places.
  • An employee or agent working for you in North Dakota.
  • Economic nexus of the out-of-state seller where you make sales or transactions into the state.
  • Renting or leasing of tangible personal property.

Step 2 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with North Dakota, next is to deduce the Sales Tax rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:

North Dakota Sales Tax Rates by Location:

The state-wide Sales Tax rate in North Dakota is 5%. Besides, many cities and counties levy additional local sales tax on tangible personal property and certain services. Following are the Sales Tax rate on State, County, and city level in North Dakota:


North Dakota Sales Tax Rates By County
County State Rate County Rate Total Sales Tax
Adams 5.00% 0.00% 5.00%
Barnes 5.00% 0.00% 5.00%
Benson 5.00% 0.00% 5.00%
Billings 5.00% 0.00% 5.00%
Bottineau 5.00% 0.00% 5.00%
Bowman 5.00% 0.00% 5.00%
Burke 5.00% 0.00% 5.00%
Burleigh 5.00% 0.50% 5.50%
Cass 5.00% 0.50% 5.50%
Cavalier 5.00% 0.00% 5.00%
Dickey 5.00% 0.00% 5.00%
Divide 5.00% 0.00% 5.00%
Dunn 5.00% 0.00% 5.00%
Eddy 5.00% 0.00% 5.00%
Emmons 5.00% 0.00% 5.00%
Foster 5.00% 0.00% 5.00%
Golden Valley 5.00% 0.00% 5.00%
Grand Forks 5.00% 0.00% 5.00%
Grant 5.00% 0.00% 5.00%
Griggs 5.00% 0.00% 5.00%
Hettinger 5.00% 0.50% 5.50%
Kidder 5.00% 0.00% 5.00%
LaMoure 5.00% 0.00% 5.00%
Logan 5.00% 0.00% 5.00%
McHenry 5.00% 0.00% 5.00%
McIntosh 5.00% 0.00% 5.00%
McKenzie 5.00% 0.00% 5.00%
McLean 5.00% 0.00% 5.00%
Mercer 5.00% 0.00% 5.00%
Morton 5.00% 0.50% 5.50%
Mountrail 5.00% 0.00% 5.00%
Nelson 5.00% 0.00% 5.00%
Oliver 5.00% 0.00% 5.00%
Pembina 5.00% 0.00% 5.00%
Pierce 5.00% 0.00% 5.00%
Ramsey 5.00% 0.00% 5.00%
Ransom 5.00% 0.00% 5.00%
Renville 5.00% 0.00% 5.00%
Richland 5.00% 0.00% 5.00%
Rolette 5.00% 0.00% 5.00%
Sargent 5.00% 0.00% 5.00%
Sheridan 5.00% 0.00% 5.00%
Sioux 5.00% 0.00% 5.00%
Slope 5.00% 0.00% 5.00%
Stark 5.00% 0.00% 5.00%
Steele 5.00% 1.00% 6.00%
Stutsman 5.00% 0.00% 5.00%
Towner 5.00% 0.00% 5.00%
Traill 5.00% 0.00% 5.00%
Walsh 5.00% 0.25% 5.25%
Ward 5.00% 0.50% 5.50%
Wells 5.00% 0.00% 5.00%
Williams 5.00% 1.00% 6.00%
North Dakota Sales Tax Rates By City
City State Rate County + City Rate Total Sales Tax
Ashley 5.00% 1.00% 6.00%
Beach 5.00% 1.00% 6.00%
Belfield 5.00% 2.00% 7.00%
Berthold 5.00% 1.50% 6.50%
Beulah 5.00% 2.00% 7.00%
Bismarck 5.00% 2.00% 7.00%
Bottineau 5.00% 2.00% 7.00%
Bowman 5.00% 2.00% 7.00%
Burlington 5.00% 2.00% 7.00%
Cando 5.00% 2.00% 7.00%
Carrington 5.00% 2.00% 7.00%
Casselton 5.00% 2.50% 7.50%
Cavalier 5.00% 2.00% 7.00%
Center 5.00% 2.00% 7.00%
Cooperstown 5.00% 1.50% 6.50%
Crosby 5.00% 3.00% 8.00%
Devils Lake 5.00% 2.25% 7.25%
Dickinson 5.00% 1.50% 6.50%
Drayton 5.00% 1.50% 6.50%
Dunseith 5.00% 1.00% 6.00%
Edgeley 5.00% 3.00% 8.00%
Elgin 5.00% 1.00% 6.00%
Ellendale 5.00% 2.00% 7.00%
Enderlin 5.00% 2.50% 7.50%
Fargo 5.00% 2.50% 7.50%
Fessenden 5.00% 2.00% 7.00%
Finley 5.00% 3.00% 8.00%
Forman 5.00% 1.50% 6.50%
Garrison 5.00% 2.00% 7.00%
Glen Ullin 5.00% 1.50% 6.50%
Glenburn 5.00% 2.00% 7.00%
Grafton 5.00% 2.75% 7.75%
Grand Forks 5.00% 2.25% 7.25%
Gwinner 5.00% 2.00% 7.00%
Hankinson 5.00% 2.00% 7.00%
Harvey 5.00% 2.00% 7.00%
Harwood 5.00% 2.50% 7.50%
Hatton 5.00% 2.50% 7.50%
Hazen 5.00% 1.50% 6.50%
Hebron 5.00% 0.50% 5.50%
Hettinger 5.00% 1.50% 6.50%
Hillsboro 5.00% 2.00% 7.00%
Horace 5.00% 2.50% 7.50%
Jamestown 5.00% 2.00% 7.00%
Kenmare 5.00% 2.50% 7.50%
Killdeer 5.00% 2.00% 7.00%
Kindred 5.00% 2.50% 7.50%
Lakota 5.00% 2.00% 7.00%
LaMoure 5.00% 2.00% 7.00%
Langdon 5.00% 2.00% 7.00%
Larimore 5.00% 2.00% 7.00%
Lidgerwood 5.00% 2.00% 7.00%
Lincoln 5.00% 1.50% 6.50%
Linton 5.00% 2.00% 7.00%
Lisbon 5.00% 2.50% 7.50%
Mandan 5.00% 2.25% 7.25%
Mapleton 5.00% 2.00% 7.00%
Mayville 5.00% 2.00% 7.00%
Milnor 5.00% 2.50% 7.50%
Minot 5.00% 2.50% 7.50%
Minto 5.00% 1.25% 6.25%
Mohall 5.00% 2.00% 7.00%
Mott 5.00% 2.50% 7.50%
Napoleon 5.00% 2.00% 7.00%
New England 5.00% 2.50% 7.50%
New Rockford 5.00% 2.50% 7.50%
New Salem 5.00% 2.50% 7.50%
New Town 5.00% 1.00% 6.00%
Northwood 5.00% 1.50% 6.50%
Oakes 5.00% 2.00% 7.00%
Park River 5.00% 2.25% 7.25%
Parshall 5.00% 0.00% 5.00%
Pembina 5.00% 2.50% 7.50%
Portland 5.00% 2.00% 7.00%
Ray 5.00% 3.00% 8.00%
Reiles Acres 5.00% 0.50% 5.50%
Richardton 5.00% 2.00% 7.00%
Rolette 5.00% 2.00% 7.00%
Rolla 5.00% 2.00% 7.00%
Rugby 5.00% 2.00% 7.00%
Stanley 5.00% 1.50% 6.50%
Steele 5.00% 2.00% 7.00%
Strasburg 5.00% 2.00% 7.00%
Surrey 5.00% 2.50% 7.50%
Thompson 5.00% 0.00% 5.00%
Tioga 5.00% 3.50% 8.50%
Towner 5.00% 2.00% 7.00%
Underwood 5.00% 2.00% 7.00%
Valley City 5.00% 2.50% 7.50%
Velva 5.00% 2.00% 7.00%
Wahpeton 5.00% 2.00% 7.00%
Walhalla 5.00% 2.00% 7.00%
Washburn 5.00% 2.00% 7.00%
Watford City 5.00% 1.50% 6.50%
West Fargo 5.00% 2.50% 7.50%
Westhope 5.00% 2.00% 7.00%
Williston 5.00% 3.00% 8.00%
Wilton 5.00% 2.00% 7.00%
Wishek 5.00% 1.50% 6.50%
Wyndmere 5.00% 2.00% 7.00%

Step 3 – Calculate Sales Tax:

After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and the gross price (amount after tax) of a product.


Example # 1:

For instance, you are selling a Wedding Dress on your store in Casselton, North Dakota, having a net price tag of $1040. The amount that a buyer has to pay (including sales tax) on a check out would be:


Manual Method:

Net Price (amount before Tax) of a Wedding Dress: $1040

Total Sales Tax rate: 2.00% (Casselton) + 0.50% (Cass County) + 5.00% (North Dakota State) = 7.50%


Total Sales Tax amount = $1040 x 7.50% = $78

Gross Price (Amount after Tax) = 1040 + 78 = $1118


It means the amount the buyer has to pay for a Wedding Dress on a cash counter would be $1118.


Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

  1. Input the $1040 Net Price of a Wedding Dress as Amount Before Tax
  2. Input or select 50% of the combined Sales Tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

north-dakota-sales-tax-calculator

Reverse Sales Tax Calculation

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our North Dakota Sales Tax Calculator can perform this calculation like a Pro.

Example:

Your buyer has paid $125 for a Walking Shoe at your store in Crosby, North Dakota. Now the buyer is inquiring how much the Walking Shoe actually cost before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a Walking Shoe:

Gross Price (Amount after Tax) of Walking Shoe: $125

Total Sales Tax rate: 3.00% (Crosby) + 0.00% (Divide County) + 5.00% (North Dakota State) = 8.00%


Manual Method:

Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]

125 = [Net Price x ((8/100) + 1)]

125 = Net Price x 1.08

$115.7 = Net Price


So the original Price (net price) of the Walking Shoe was $115.7.


Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the above mentioned manual method. All you need is:

  1. Input the $125 Gross Price of Walking Shoe as Amount after Tax
  2. Input or select 8.00% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

Also Check: North Dakota Paycheck Calculator to Calculate your Paycheck in North Dakota State including all taxes and take home pay.

FAQs

Answer: Cars are subjected to North Dakota Statewide sales tax of 5% but no local sales tax.

Answer: Food like Groceries bought for personal consumption are exempted from sales tax. However, prepared food is taxable.

Answer: Although most services are not taxable. However, certain services, including communications services, deliveries, and construction or assembly of a taxable item of taxable items are subjected to North Dakota Sales Tax.

Answer: No, Labor is exempted from Sales Tax in North Dakota. However, labor charges that are lump sum billed or separately stated related to the sale of a fabricated item are taxable.

Answer: Freight included with the selling price of a taxable item by the seller in the bill are subjected to sales tax in North Dakota.

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