North Dakota City and County Sales Tax, Lodging and Restaurant Tax Rates by City (Effective Oct 1, 2026): Fargo 7.75%, Bismarck 8%, Minot 8%
North Dakota City and County Sales Tax, Lodging and Restaurant Tax Rates by City (Effective Oct 1, 2026): Fargo 7.75%, Bismarck 8%, Minot 8%
If you sell taxable goods in North Dakota, the rate you charge depends on the city and county where the sale happens. Effective October 1, 2026, the statewide sales tax rate is 5%, and most cities add their own local rate on top of it. Some counties add another rate. This guide lists the city and county rates that apply for October 1, 2026, the per-sale caps on city tax, and the lodging and restaurant tax rules that affect hotels, restaurants and other hospitality businesses. It is the north dakota sales tax rate by city reference you can check before you set up your point of sale.
This article is informational content, not legal or tax advice. Rates change, and your filing duties depend on what you sell and where you sell it. Confirm every rate in the ND TAP rate lookup before you charge tax, and talk with a qualified CPA or attorney if your situation is complex.
How North Dakota sales tax is built
North Dakota's statewide sales tax rate is 5%. City and county taxes are not separate filings. They ride on the same state sales tax return you file with the Office of State Tax Commissioner. Your combined rate is the 5% state rate, plus the city rate for the place of sale, plus the county rate if that county levies one.
Three details matter when you set up your sales tax account:
- North Dakota has 53 counties, but only eight levy a county sales tax: Burleigh, Cass, Hettinger, Morton, Steele, Walsh, Ward and Williams.
- Counties do not license businesses. Cities license specific activities only, and North Dakota has no general statewide business license.
- Any business making taxable sales must hold a sales and use tax permit from the Office of State Tax Commissioner. You apply through ND TAP, ideally about 30 days before you open.
Because the county piece only applies in eight counties, two cities with similar city rates can end up with different combined rates. That is why a city name alone does not tell you the full rate.
Combined city and county rates effective October 1, 2026
The table below shows the city rate, the county rate and the combined rate for the cities where the combined figure is published. Every rate in this table is effective October 1, 2026. "None" means the city's county does not levy a county sales tax on this schedule.
| City | City rate | County rate | Combined rate (with 5% state rate) |
|---|---|---|---|
| Grafton | 2.75% | 1% (Walsh) | 8.75% |
| Mandan | 2.25% | 1% (Morton) | 8.25% |
| Fargo | 2.25% | 0.5% (Cass) | 7.75% |
| West Fargo | 2.5% | 0.5% (Cass) | 8% |
| Bismarck | 2% | 1% (Burleigh) | 8% |
| Minot | 2.5% | 0.5% (Ward) | 8% |
| Williston | 2% | 1% (Williams) | 8% |
| Grand Forks | 2.25% | None | 7.25% |
| Dickinson | 1.5% | None | 6.5% |
Read the table as a simple sum. A $100 taxable sale in Bismarck carries 8%, or $8.00 in total tax, for a $108.00 receipt. The same sale in Fargo carries 7.75%, or $7.75, and in Dickinson it carries 6.5%, or $6.50. Those differences come from the local layers, not from the state rate, which is the same everywhere.
Minot is the one city in this group where a component changes on the effective date. Its city rate is 2.5% effective October 1, 2026, the final 0.5 percentage point of that rate starts on the same date, and its per-sale cap rises to $150 from October 1, 2026.
Other cities with published city rates
The following cities have published city rates effective October 1, 2026. The combined rate for each depends on whether the county where the city sits levies a county tax, so confirm the full figure in ND TAP before you charge tax.
- Wahpeton: 3%
- Jamestown: 2.5%
- Devils Lake: 2.5%
- Valley City: 2.5%
- Horace: 2%
- Watford City: 1.5%
Per-sale caps on city tax
Several cities cap the city tax on a single sale. A cap means that once a sale reaches a set amount, the city percentage stops adding tax to that sale. The caps effective October 1, 2026 are:
| City | Per-sale cap effective October 1, 2026 |
|---|---|
| Minot | $150.00 |
| Fargo | $56.25 |
| Grand Forks | $56.25 |
| Williston | $50.00 |
| Bismarck | $37.50 |
In practice, a cap changes the math on large sales. At Fargo's 2.25% city rate, the $56.25 cap is reached on a sale of $2,500. Above that amount, the city portion of the tax does not rise further. Confirm with the Tax Commissioner how the cap applies to your product mix before you build it into your point of sale.
Lodging and restaurant taxes
Hotels, motels, short term rentals and restaurants face a separate layer of local tax on top of the state and local sales tax. Two rules frame it, both effective October 1, 2026:
- A local lodging tax may not exceed 2%.
- The lodging and restaurant tax is 1% on sales.
The administration differs by city, so you cannot apply one rule across the state:
- Bismarck lodging and restaurant taxes are administered by the state.
- Fargo, Grand Forks, Minot, Valley City and West Fargo run their own lodging taxes. Confirm the current city rate directly with each city before you charge a guest.
If your business both sells lodging and serves food, track those two revenue streams separately from the start. Mixed invoices are the most common source of errors when a business moves from one tax to another.
Refunds and record keeping
If you or a customer overpaid local tax, refund claims can be made within 3 years, and the claim requires the original receipt. Keep every receipt and every point of sale report for at least that long. Many of the errors that turn into refund requests are not rate mistakes but missing records that make the original sale impossible to reconstruct.
When rates change
City and county rates change only on the first day of a calendar quarter: January 1, April 1, July 1 or October 1. The Office of State Tax Commissioner posts each change at least 60 days ahead, so a change for January 1, 2027 would appear in the rate lookup well before it takes effect. Check ND TAP at the start of each quarter, and again whenever you receive a notice, and update your point of sale settings to match.
Forming the business and registering to collect tax
Sales tax registration is separate from forming your legal entity. If you are still choosing a structure, the North Dakota Secretary of State charges a $135 filing fee for articles of organization for an LLC and a $100 filing fee for articles of incorporation for a corporation, both filed through FirstStop. An LLC also owes a $50 annual report, due November 15 each year for business LLCs.
North Dakota has no general statewide business license. Forming an entity or registering a trade name is a filing with the Secretary of State, not a license. The sales and use tax permit is the license-like document that most retailers and service sellers need, and it comes from the Office of State Tax Commissioner.
Next steps
- Apply for your sales and use tax permit through ND TAP about 30 days before you open.
- Look up the combined rate for each location where you sell, using the ND TAP rate lookup rather than this table alone.
- Configure your point of sale with the city rate, the county rate where one applies, and any per-sale cap that applies to your city.
- If you provide lodging or serve food, confirm the city lodging and restaurant tax rules and track those sales separately.
- Keep receipts and reports so you can support a refund claim within 3 years if one is needed.
Official sources
- North Dakota Office of State Tax Commissioner: https://www.tax.nd.gov/
- ND TAP (sales tax permit and rate lookup): https://tap.tax.nd.gov/
- North Dakota Secretary of State: https://www.sos.nd.gov/
Disclaimer: This guide is informational content, not legal or tax advice. The rates shown are effective October 1, 2026 and may change. Before you file, collect tax, or make decisions about a lodging or restaurant operation, confirm current rates with the Office of State Tax Commissioner and the relevant city, and consult a qualified CPA or attorney for your specific situation.