ND
North Dakota Small Business Tax Guide
Sales and use tax, permits, returns and business income tax in North Dakota, quoted from the Office of State Tax Commissioner. Educational overview only, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in North Dakota before making filing or planning decisions.
Tax landscape for small businesses
The North Dakota rates, thresholds and dates below are quoted from the Office of State Tax Commissioner, as retrieved on October 31, 2026. Where a document carries its own date, that date is given as well.
Sales tax first: the Office of State Tax Commissioner's Sales, Use, and Gross Receipts Tax Requirements Guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "Sales tax is paid by the purchaser and collected by the retailer." It lists the general rate as "Five percent on the total receipts from all other taxable retail sales of tangible personal property and certain services."
Cities and counties can add to that. The commissioner's local taxes page (North Dakota, as retrieved on October 31, 2026) says "Cities and counties may levy sales and use taxes, as well as special taxes such as lodging taxes, lodging and restaurant taxes, and motor vehicle rental taxes." It adds: "New local taxes and changes to existing local taxes become effective on the first day of a calendar quarter."
For business income, the commissioner's new businesses page (North Dakota, as retrieved on October 31, 2026) says "Partnerships, S corporations, and LLCs do not pay income tax at the entity level; instead, the entity’s profit or loss is passed through to the entity's owners." The corporate and individual rate tables are in the overview below; the individual rates are the ones the commissioner lists for the 2025 tax year.
Worked example, with sample figures before any tax: a $1,200.00 sale of taxable goods to a customer in North Dakota. The guideline's five percent rate, in its October 2026 revision as retrieved on October 31, 2026, gives $1,200.00 × 5% = $60.00 in state sales tax, so the invoice total is $1,260.00 before any city or county tax. If the sale is in a city or county with its own sales tax, add that tax as well, and check local rates in the commissioner's Sales Tax Rate Lookup. Use your own figures; these are only an illustration.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Sales tax: general rate | "Five percent" | The Office of State Tax Commissioner's Sales, Use, and Gross Receipts Tax Requirements Guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026): "Five percent on the total receipts from all other taxable retail sales of tangible personal property and certain services." |
| New manufactured homes | "Three percent" | Same guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026): "Three percent on the total receipts from retail sales of new manufactured homes." |
| Gross receipts tax, alcoholic beverages | "Seven percent" | Same guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026): "Seven percent on the gross receipts from retail sales of alcoholic beverages sold for consumption either on or off the premises." |
| Gross receipts tax, new farm machinery and irrigation equipment | "Three percent" | Same guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026): "Three percent on the gross receipts from retail sales of new farm machinery and new irrigation equipment used exclusively for agricultural purposes." |
| Local lodging and restaurant taxes | "May not exceed 2%" (lodging) | Local taxes page (North Dakota, as retrieved on October 31, 2026): "Local Lodging Tax - May not exceed 2%; Lodging & Restaurant Tax – 1% on sales" |
| Corporate income tax | "1.41%" to "4.31%" by bracket | Corporate income tax page (North Dakota, as retrieved on October 31, 2026): taxable income over $0 but not over $25,000, "1.41% of North Dakota Taxable Income"; over $25,000 but not over $50,000, "$352.50 Plus 3.55% of Amount Over $25,000"; over $50,000, "$1,240 Plus 4.31% of Amount Over $50,000". The page adds: "Corporate tax rates have remained unchanged since 2015." |
| Individual income tax, 2025 tax year (single filers) | "0.00%", "1.95%", "2.50%" | Individual income tax page (North Dakota, as retrieved on October 31, 2026): "The tax rates applicable to each filing status for the 2025 tax year are as follows:" For single filers, "0.00%" on taxable income up to $48,475, "1.95%" over $48,475 but not over $244,825, and "2.50%" over $244,825. Married filing jointly, married filing separately and head of household have their own thresholds on the same page. |
| Partnerships, S corporations and LLCs | No entity-level income tax | New businesses page (North Dakota, as retrieved on October 31, 2026): "Partnerships, S corporations, and LLCs do not pay income tax at the entity level; instead, the entity’s profit or loss is passed through to the entity's owners." |
Filing requirements
This list isn't a complete checklist for your business.
Sales tax permit
The Office of State Tax Commissioner's Sales, Use, and Gross Receipts Tax Requirements Guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "Any business or institution with a physical presence in North Dakota making taxable retail sales of tangible personal property or certain services is required to hold a North Dakota sales, use and gross receipts tax permit, and to collect North Dakota and local sales and use taxes." The sales and use tax page (North Dakota, as retrieved on October 31, 2026) says "You should apply for a permit 30 days prior to opening for business."
Remote sellers
The same guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "The small seller exception requires sales tax collection by remote sellers only if their taxable sales into the state within a calendar year exceed $100,000."
Sales tax returns, including periods with no sales
The guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says that once a business has a permit, "a sales, use and gross receipts tax return is sent to the taxpayer each calendar quarter (or each assigned reporting period) to report and remit the sales, use and gross receipts tax." It adds: "These returns must be filed each period whether tax is due or not."
2026 quarterly sales tax due dates
The sales and use tax deadlines page (North Dakota, as retrieved on October 31, 2026) lists, under April 30: "Quarterly sales, use, and gross receipts tax return and payment are due for 1st quarter of 2026." Under July 31: "Quarterly sales, use, and gross receipts tax return and payment are due for 2nd quarter of 2026." Under November 2: "Quarterly sales, use, and gross receipts tax return and payment are due for 3rd quarter of 2026." with the note "Since October 31 falls on a Saturday, any return, tax payment, or other required action is not due until November 2."
Late sales tax returns
The guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "For returns filed late, a minimum penalty of 5% of the tax due or $5.00, whichever is greater, will be added to the tax due for the first month the return is late." It also says "Interest of 1% of the tax due will be assessed for each month or fraction of a month after the first month that a return is late."
Corporate income tax return and estimates
The corporate income tax page (North Dakota, as retrieved on October 31, 2026) says "Every corporation that does business in North Dakota or has sources of income in North Dakota must file a Form 40 – Corporation Income Tax Return." and "The return is due on April 15 of each year." On estimates: "Estimated payments are required if a corporation’s income tax liability is expected to exceed $5,000 for the current taxable year and the previous year’s state income tax liability exceeded $5,000."
Individual returns and estimated tax
The individual income tax deadlines page (North Dakota, as retrieved on October 31, 2026) lists under April 15: "2025 Form ND-1 or ND-EZ Individual Income Tax Return and tax are due." The individual income tax page (North Dakota, as retrieved on October 31, 2026) says "You may be required to pay estimated income tax to North Dakota if you are required to pay federal estimated income tax and you expect your North Dakota net tax liability to be more than $1,000."
Deductions and write-offs
Confirm with your state how it treats each item.
- Purchases for resale: the Office of State Tax Commissioner's Sales, Use, and Gross Receipts Tax Requirements Guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "If a business or institution purchases materials, supplies or equipment for resale, the business or institution should not pay the tax to the supplier."
- Items not taxed: the new businesses page (North Dakota, as retrieved on October 31, 2026) says "natural gas, electricity, most professional services, and groceries are not taxed."
- Business personal property: the same page (North Dakota, as retrieved on October 31, 2026) says "North Dakota exempts personal property from taxation (except certain oil and gas refineries and utilities)."
- Income tax credits: the corporate and individual income tax pages (North Dakota, as retrieved on October 31, 2026) list credits that include the Research expense credit, the Automation equipment purchase credit and the Workforce recruitment credit. Check each credit's own page for who qualifies.
Practical tips
- File a return even in a quarter with no sales. The guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "If no tax is due, the return must be filed indicating that no taxable sales or reportable purchases were made for that period."
- Include shipping in the taxable total. The guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says freight and delivery charges "are always considered to be part of the selling price." and "If the sale is taxable, the freight, delivery, and other transportation charges are taxable."
- Keep resale certificates in your own files. The guideline (North Dakota, content revised October 2026, as retrieved on October 31, 2026) says "These certificates are not to be sent to the Office of State Tax Commissioner, but must be retained in the supplier’s files to substantiate sales claimed as sales for resale."
- Check local rates before each quarter starts. The local taxes page (North Dakota, as retrieved on October 31, 2026) says "Updates are posted 60 days prior to the changes becoming effective."
- Save the state rate in your invoicing tool once. Billed's invoice software page says "Save your tax rates and settings once, and Billed calculates taxes automatically when you create invoices and estimates."
Frequently asked questions
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At a glance
| Topic | What the Office of State Tax Commissioner says |
|---|---|
| State sales tax, general rate | "Five percent" (North Dakota, content revised October 2026, as retrieved on October 31, 2026) |
| Local lodging tax | "May not exceed 2%" (North Dakota, as retrieved on October 31, 2026) |
| Remote seller threshold | "exceed $100,000" in taxable sales in a calendar year (North Dakota, content revised October 2026, as retrieved on October 31, 2026) |
| Late sales tax return | "a minimum penalty of 5% of the tax due or $5.00, whichever is greater" (North Dakota, content revised October 2026, as retrieved on October 31, 2026) |
| Corporate income tax, top bracket | "$1,240 Plus 4.31% of Amount Over $50,000" (North Dakota, as retrieved on October 31, 2026) |
| Individual income tax, 2025 tax year, top rate | "2.50%" (North Dakota, as retrieved on October 31, 2026) |
When this isn't for you
For North Dakota small business owners who want the Office of State Tax Commissioner's own wording on sales and income tax. Payroll withholding, motor vehicle, alcohol wholesale and oil and gas taxes aren't covered; ask the Office of State Tax Commissioner or a tax professional.