Sales tax in Dickinson, North Dakota runs 6.5% on most retail purchases: 5% from the state and 1.5% from the city.1North Dakota Office of State Tax Commissioner. Sales and Use Tax2North Dakota Office of State Tax Commissioner. Local Taxes by Location Guideline Stark County adds nothing of its own. Restaurant meals and hotel stays carry extra local levies that push the rate higher, and groceries and prescription drugs are fully exempt.
The $100 City Cap on Large Purchases
The city’s 1.5% share stops accumulating once a single sale reaches $6,667. Above that point, the city tax on the transaction is capped at $100, and anything over that amount adds no further city tax.2North Dakota Office of State Tax Commissioner. Local Taxes by Location Guideline If a cashier charges the full 1.5% on a purchase that should have hit the cap, you can apply to the Office of State Tax Commissioner for a refund of the excess.
The state’s 5% has no equivalent ceiling. It applies to the full price no matter how large the sale.
Restaurants: 7.5%
Dickinson layers a 1% lodging and restaurant tax on prepared food and beverage sales, so a restaurant meal is taxed at 7.5% rather than the base 6.5%.2North Dakota Office of State Tax Commissioner. Local Taxes by Location Guideline Dine-in, takeout, delivery, and catering all count. So do snacks, drinks, candy, and other items sold for immediate consumption at a restaurant or café.3North Dakota Office of State Tax Commissioner. Sales Tax – Restaurants Guideline Bulk items a customer isn’t going to eat on the spot (whole cakes, large bakery orders, bulk ice cream) are the exception.
Hotels and Short-Term Rentals: 9.5%
Lodging in Dickinson carries the 6.5% general sales tax plus two local add-ons: a 2% local lodging tax and the 1% lodging and restaurant tax. The total on a hotel room comes to 9.5%.2North Dakota Office of State Tax Commissioner. Local Taxes by Location Guideline The state administers these local levies on behalf of the city.4North Dakota Office of State Tax Commissioner. Local Taxes – City and County Taxes Short-term rental accommodations are taxed the same way.
What’s Exempt
Several categories are fully exempt from both the state and city tax.
- Groceries. Food and food ingredients for home preparation are exempt. Candy, chewing gum, dietary supplements, soft drinks with 50% or less fruit juice, and prepared food do not qualify.5North Dakota Office of State Tax Commissioner. Sales Tax Exemptions and Incentives
- Prescription drugs and medical equipment. Doctor-prescribed medications, insulin and testing supplies, prosthetic devices, mobility-enhancing equipment, oxygen, and durable medical equipment for ostomy care or bladder dysfunction.5North Dakota Office of State Tax Commissioner. Sales Tax Exemptions and Incentives
- Agricultural supplies. Commercial fertilizers, herbicides, insecticides, fungicides, seed treatments, and seeds or plants for commercial agricultural use. Farm machinery and repair parts used exclusively for agriculture also qualify.6North Dakota Legislative Branch. North Dakota Century Code 57-39.2 – Sales Tax
- Government purchases. Sales to the federal government, the state of North Dakota, local political subdivisions, and tribal government agencies. The buyer must hold a certificate of exemption from the Tax Commissioner and present it at the time of purchase.6North Dakota Legislative Branch. North Dakota Century Code 57-39.2 – Sales Tax
- A narrow set of nonprofits. Sales to nonprofit health associations and nonprofit medical research institutes exempt under Section 501(c)(3) of the Internal Revenue Code. The exemption is narrower than many people expect; most 501(c)(3) organizations do not qualify.5North Dakota Office of State Tax Commissioner. Sales Tax Exemptions and Incentives
Digital Products Are Mostly Untaxed
North Dakota doesn’t tax most digital goods. Streaming music, downloaded e-books, digital magazines, and video content are exempt whether you buy permanent access or subscribe. Software-as-a-service (cloud subscriptions like project management tools or accounting platforms) is also untaxed, because the state treats it as a service rather than tangible property.
Prewritten software delivered electronically or on physical media is the exception and is taxable at the full 6.5%. Bundling a cloud service with a physical product, like a storage device, can also make the whole sale taxable.
What Else the Rate Covers
The 6.5% applies to most tangible personal property you can touch and carry away: electronics, clothing, furniture, appliances, building materials. Leasing or renting equipment and vehicles triggers the same rate. Admissions to recreational activities, including tickets for movies and concerts, are also taxable.1North Dakota Office of State Tax Commissioner. Sales and Use Tax
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state seller who didn’t charge North Dakota tax and bring it into the state to use, store, or consume, you owe use tax at the same 6.5%.1North Dakota Office of State Tax Commissioner. Sales and Use Tax This covers individuals and businesses, and it reaches everything from clothing and home goods to shop equipment and building materials.
If you already paid sales tax to another state on the item, you get credit for that amount. You owe North Dakota only the difference, and only if the other state’s rate was lower than 6.5%.1North Dakota Office of State Tax Commissioner. Sales and Use Tax Residents without a sales tax permit can report what they owe using the One Time Remittance form on the Tax Commissioner’s website.
Larger online retailers already collect North Dakota tax, including the Dickinson city portion, when they ship to an address in the city. That’s because any out-of-state seller moving more than $100,000 in goods to North Dakota customers in the current or prior calendar year is required to register and collect. Marketplaces like Amazon, Etsy, and Walmart.com handle collection on behalf of their third-party sellers.7North Dakota Legislative Branch. North Dakota Century Code 57-40.2 – Use Tax Use tax most often comes up on purchases from smaller sellers who aren’t registered to collect.