The North Dakota gas tax is 23 cents per gallon, applied to gasoline, gasohol, and diesel sold in the state.1North Dakota Office of State Tax Commissioner. Motor Fuel Tax The rate has held steady for years and is among the lowest in the region. It’s collected before the fuel ever reaches a gas station, so by the time you fill up, the tax is already baked into the posted price. The revenue goes into road and bridge work across the state.
Rates by Fuel Type
Most motor fuels carry the same 23-cent rate, but the authority and the measurement differ:
- Gasoline and gasohol: 23 cents per gallon.1North Dakota Office of State Tax Commissioner. Motor Fuel Tax
- Diesel and other special fuels: 23 cents per gallon when sold for use in licensed vehicles.2North Dakota Legislative Branch. North Dakota Code 57-43.2 – Special Fuels and Importer for Use Taxes
- Compressed natural gas: 23 cents per gallon-equivalent, with 120 cubic feet treated as one gallon.2North Dakota Legislative Branch. North Dakota Code 57-43.2 – Special Fuels and Importer for Use Taxes
- Liquefied natural gas: 23 cents per gallon-equivalent, with 1.7 gallons of LNG treated as one gallon of other special fuel.2North Dakota Legislative Branch. North Dakota Code 57-43.2 – Special Fuels and Importer for Use Taxes
- Aviation gasoline and jet fuel: 8 cents per gallon.1North Dakota Office of State Tax Commissioner. Motor Fuel Tax
What You Actually Pay at the Pump
The 23-cent state tax is only part of what you pay per gallon. The federal excise tax adds 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel (both figures include the 0.1-cent Leaking Underground Storage Tank fee). A North Dakota driver pays a combined 41.4 cents per gallon in state and federal tax on regular gasoline, and 47.4 cents per gallon on diesel.
By regional comparison, Montana charges 33 cents per gallon on gasoline, South Dakota charges 30 cents, and Minnesota charges 31.8 cents. North Dakota’s lower rate reflects, in part, the revenue the state draws from oil and gas extraction taxes alongside fuel taxes.
Where the Money Goes
All fuel taxes, license fees, penalties, and interest collected under the motor fuel tax chapter are deposited into the Highway Tax Distribution Fund.3Justia Law. North Dakota Code Title 57 Chapter 57-43.1 – Motor Vehicle Fuels and Importer for Use Taxes From there, the money is split among the state, counties, cities, and townships under a formula in Section 54-27-19 of the Century Code. The state highway department takes the largest share for major routes; the local allocations fund county and city road work and the rural township roads that connect farms and residences to the main network.
Refunds for Non-Highway Fuel Use
If you buy taxed fuel but burn it somewhere other than a public road, the 23-cent tax is refundable. Agricultural use is the common case: fuel for tractors, combines, grain dryers, and irrigation equipment qualifies because those machines don’t use the highway system the tax funds. State and local government agencies can also claim refunds for fuel used in official operations, with exceptions for multipurpose municipal vehicles and non-ambulance hospital and nursing home vehicles.4North Dakota Office of State Tax Commissioner. Aviation Fuel Tax Claim for Refund for Emergency Medical Services
Filing Windows and Minimums
Refund claims for fuel bought during a calendar year must be filed on or after January 1 and before July 1 of the following year. Miss that window and the claim is barred unless the Tax Commissioner grants an extension.5North Dakota Legislative Branch. North Dakota Code 57-43.1 – Motor Vehicle Fuels and Importer for Use Taxes You can file earlier, in the same calendar year as the purchase, in three situations:
- You’re discontinuing the business.
- You know you won’t buy any more refund-eligible fuel for the rest of the year.
- Your claim exceeds $400.
The refund has to total at least $5 or the state will not process it.5North Dakota Legislative Branch. North Dakota Code 57-43.1 – Motor Vehicle Fuels and Importer for Use Taxes
Documentation
You’ll need original invoices and usage logs showing how much fuel went to non-highway purposes. Claim forms come from the North Dakota Office of State Tax Commissioner, and the records have to clearly show the fuel wasn’t used on public roads. Keeping a running log through the year is far easier than reconstructing one in January, and weak recordkeeping is the main reason claims get denied or delayed.
Electric and Plug-In Hybrid Road Use Fees
Drivers who don’t buy gasoline still use the roads, so North Dakota collects an annual road use fee at registration:
- Battery electric vehicles: $120 per year.6North Dakota Legislative Branch. North Dakota Code 39-04 – Registration of Motor Vehicles
- Plug-in hybrid vehicles: $50 per year.7North Dakota Department of Transportation. Passenger Fee Schedule
The fee is charged on top of the standard registration cost. Plug-in hybrids pay less because they still buy some gasoline and contribute some fuel tax that way. A gas car driven 12,000 miles a year at 25 miles per gallon generates about $110 in state fuel tax, which puts the $120 EV fee in the same ballpark.
Rules for Suppliers and Distributors
Refiners, suppliers, and distributors are the ones who actually remit fuel taxes to the state. Each must apply for a license through the Tax Commissioner before handling taxable fuel in North Dakota. Once issued, the license stays valid until suspended, revoked, or canceled, and it can’t be transferred.3Justia Law. North Dakota Code Title 57 Chapter 57-43.1 – Motor Vehicle Fuels and Importer for Use Taxes The Commissioner may deny a license if the applicant doesn’t post the required security, withholds information, or had a prior license revoked.
License holders file a monthly report of fuel purchases and sales. The deadline is the 25th of the month following the reporting period, so January activity is due by February 25.1North Dakota Office of State Tax Commissioner. Motor Fuel Tax Returns are filed electronically and cross-checked against terminal records.
Penalties
A late or missing report draws a penalty of 5 percent of the tax due or $5, whichever is greater, plus interest at 1 percent per month for each month the delinquency continues (not counting the month the return was originally due). A fraudulent report carries a 10 percent penalty on the deficiency, with interest at double the normal rate (2 percent per month).5North Dakota Legislative Branch. North Dakota Code 57-43.1 – Motor Vehicle Fuels and Importer for Use Taxes The Tax Commissioner can waive all or part of the penalty and interest for good cause, so a legitimate explanation is worth providing rather than just paying the surcharge. Repeated compliance failures can also lead to license revocation.
Interstate Carriers and IFTA
Commercial carriers running across state lines don’t file separate fuel tax returns in every state. They register under the International Fuel Tax Agreement and file a single quarterly return through their base jurisdiction. In North Dakota, IFTA registration is handled by the Department of Transportation through its IRP/IFTA online portal, and new accounts have to be set up through the main Bismarck office rather than branch locations.8North Dakota Department of Transportation. International Registration Plans (IFTA, IRP and UCR) Once registered, carriers report miles driven and fuel purchased in each jurisdiction, and IFTA handles the credits and payments between states.