Burleigh County Sales Tax: Rates, Use Tax, and Filing

The Burleigh County sales tax rate depends on where in the county the sale happens: 6% in unincorporated areas, 7% in Lincoln, and 8% inside Bismarck. Every rate stacks the same three layers — 5% North Dakota state tax, 1% county tax, and a city tax that varies by municipality.¹ Hotels, restaurants, and bars in Bismarck carry additional levies that push the effective rate higher still.

Rate by Location

Unincorporated Burleigh County: 6% (5% state + 1% county)
Lincoln: 7% (5% state + 1% county + 1% city)
Bismarck: 8% (5% state + 1% county + 2% city)
Wilton (southern portion inside Burleigh County): 7% (5% state + 1% county + 1% city)¹

The county portion rose to 1% on October 1, 2024, and Bismarck’s city share rose from 1.5% to 2% on April 1, 2025, making the city’s 8% rate the highest general rate in the county.² Sellers charge the rate for the delivery address, not the business address. A Bismarck shop shipping to an unincorporated address collects 6%.

Hotels, Restaurants, and Bars in Bismarck

If you’re staying overnight or going out to eat in Bismarck, the headline 8% understates what you’ll see on the receipt.

A hotel or motel room runs 11% total: 5% state, 2% city, 1% county, a 2% local lodging tax, and a 1% local lodging and restaurant tax.³ Licensed bed and breakfasts pay the same 11%.

Restaurant meals are taxed at 9% — the 8% general rate plus the 1% local lodging, liquor, and restaurant tax.⁴

Alcohol is treated differently. North Dakota replaces the usual 5% state sales tax with a 7% gross receipts tax on retail alcohol sales.⁵ Added to Bismarck’s 2% city tax, 1% county tax, and 1% local restaurant and liquor tax, a bar tab in the city is taxed at 11%.

What’s Taxed and What Isn’t

North Dakota taxes all retail sales of tangible personal property unless a specific exemption applies, along with certain services and intangibles.⁶ Taxable categories include:

Clothing, furniture, electronics, and other everyday retail goods
Admissions to sporting events, concerts, and recreational activities
Short-term lodging (stays under 30 consecutive days)
Phone and telecommunications services, though internet access is excluded
Prewritten software, including downloads with no physical media

Custom software written to a buyer’s specifications is not taxed. Streaming music, ebooks, and video downloads are generally exempt as well, putting North Dakota in the minority of states on digital products.

Groceries

Food and food ingredients for home consumption are exempt from state and local sales tax.⁶ Prepared food stays fully taxable — anything sold heated, combined from multiple ingredients for immediate sale, or served with utensils.⁷ Candy, soft drinks, dietary supplements, and alcoholic beverages are also excluded from the grocery exemption.

Medical Items

Prescription drugs are exempt. So are prosthetic devices sold under a written prescription, durable medical equipment for home use, mobility-enhancing equipment such as wheelchairs, vehicle modifications for disabled individuals, and supplies for ostomy and bladder care.⁶ Sellers don’t need an exemption certificate for durable medical equipment; the exemption applies automatically.

Agriculture

Farm machinery and irrigation equipment used in agricultural production are taxed at a reduced rate rather than 5%. Agricultural chemicals, herbicides, fungicides, commercial-planting seeds, and fertilizers are fully exempt.⁸ Qualifying repair parts for eligible farm machinery are also exempt.⁹

Use Tax on Out-of-State Purchases

When you buy from a seller that doesn’t collect North Dakota sales tax and bring the item into Burleigh County, you owe use tax at the same combined local rate.¹⁰ If you already paid another state’s sales tax at an equal or higher rate, you get credit for that amount and owe only the difference, if any.

The rule covers online orders, items shipped from out of state, and anything you carry in from elsewhere.¹¹ In practice, most consumers never cut a check for use tax, because marketplaces and major online retailers now collect and remit it automatically.

For Businesses: Permits, Filing, and Remote Sellers

Any business selling taxable goods, admissions, or lodging in Burleigh County needs a North Dakota Sales and Use Tax Permit before opening. Apply through ND TAP, the state’s online taxpayer portal, at least 30 days before you start selling. There’s no application fee. Permits aren’t transferable, so a buyer of an existing business needs a new one in their own name.¹⁰

The state assigns a filing frequency — monthly, quarterly, or annually — based on sales volume. Returns are due even in periods with zero sales; skipping a filing because nothing sold is itself a violation. Return due dates fall no earlier than the 20th of the month after each reporting period.¹² Keep ledgers, invoices, and exemption certificates for at least three years and three months, the state’s audit window.¹⁰

Out-of-state sellers aren’t off the hook for local tax. Remote sellers must register and collect once their taxable sales into North Dakota exceed $100,000 in the current or prior calendar year. There’s no separate transaction-count threshold. A seller crossing that line for the first time has to register within 60 days or by January 1 of the following year, whichever comes first.¹³

Marketplace facilitators like Amazon or Etsy collect and remit tax on sales made through their platforms and certify in writing to each third-party seller that they’re handling it. Once a seller has that written certification, the seller isn’t liable for tax on those marketplace sales.¹³

Penalties for Late Filing

A late return triggers a penalty of 5% of the tax due (or $5, whichever is greater) for the first month, then another 5% for each additional month, capped at 25% of the tax owed.¹⁰ Unpaid balances also accrue interest at 1% per month starting the month after the tax was due.¹⁴ A filing six months overdue carries the full 25% penalty plus 6% in accumulated interest on top of the original tax.

1
North Dakota Office of State Tax Commissioner. Notice to Burleigh County Permit Holders
2
North Dakota Office of State Tax Commissioner. Local Tax Changes for April 1, 2025
3
North Dakota Office of State Tax Commissioner. Notice to Bismarck Permit Holders
4
City of Bismarck. Budget Committee Update July 28, 2020
5
North Dakota Legislative Branch. North Dakota Code 57-39.6 – Alcoholic Beverage Gross Receipts Tax
6
North Dakota Legislative Branch. North Dakota Code 57-39.2 – Sales Tax
7
North Dakota Legislative Branch. North Dakota Administrative Code 81-04.1-03 – Miscellaneous Sales – Section: Food and Food Products for Human Consumption
8
Office of State Tax Commissioner. Sales Tax Exemptions and Incentives
9
North Dakota Legislative Branch. North Dakota Administrative Code 81-04.1-04 – Specific Occupations
10
Office of State Tax Commissioner. Sales and Use Tax
11
North Dakota Legislative Branch. North Dakota Administrative Code 81-04.1-01 – General Rules
12
Streamlined Sales Tax Governing Board, Inc. Filing Sales Tax Returns
13
North Dakota Office of State Tax Commissioner. Marketplace Facilitator
14
Legal Information Institute. North Dakota Administrative Code 81-09-02-06.1 – Penalty and Interest