Williston ND Sales Tax Rate: 8% Breakdown, Cap, and Use Tax

The sales tax rate in Williston, ND is 8% on most retail purchases. That total is made up of 5% for the state of North Dakota, 1% for Williams County, and 2% for the City of Williston.¹ The city portion is capped on expensive single items, and several categories of goods, including unprepared groceries and prescription medications, are not taxed at all.

How the 8% Breaks Down

North Dakota’s statewide sales tax is 5%, which covers most retail sales of goods and taxable services.² Williams County adds a 1% home rule sales tax, in effect since April 2015.¹ On top of that, the City of Williston levies a 2% municipal sales tax, structured in the city code as two separate 1% taxes.³ All three are collected together at the register, so you’ll see a single 8% line on your receipt.

The $2,500 Cap on Williston’s City Tax

Williston’s 2% city sales tax applies only to the first $2,500 of any single purchase. Once a single item crosses that threshold, the city’s portion stops accumulating.³ The maximum city tax on one item is $50, whether the item costs $5,000 or $50,000. That matters if you’re buying a vehicle, heavy equipment, or any other high-dollar single purchase inside city limits.

The 5% state tax has no cap, and Williams County removed its own per-sale cap in April 2015, so the county’s 1% also applies to the full price.¹ On a $10,000 piece of equipment, you’d owe $500 in state tax, $100 in county tax, and the capped $50 in city tax. That’s $650 total, instead of the $800 a flat 8% would produce.

What’s Exempt or Taxed Differently

Several categories of goods are not subject to North Dakota sales tax at all. Unprepared food and food ingredients are tax-free at checkout, though the exemption does not reach prepared food, candy, soft drinks with 50% or less fruit juice, or dietary supplements.⁴ Prescription medications, insulin supplies, prosthetic devices, and mobility-enhancing equipment are also exempt.

Agricultural inputs get their own treatment. Seeds, commercial fertilizers, herbicides, insecticides, and related crop chemicals are fully exempt.⁴ New farm machinery and irrigation equipment used exclusively for farming aren’t exempt but are taxed at a reduced 3% gross receipts rate instead of the standard 5%. Used farm machinery and repair parts meeting the same agricultural-use standard are fully exempt from both state and local taxes.⁵ Local gross receipts taxes may still apply to new farm machinery, so the total at the register can vary by location.

Extra Taxes on Hotels and Restaurants

If you’re staying at a hotel or eating out in Williston, the rate on your bill is higher than 8%. Hotels, motels, and tourist courts renting rooms for fewer than 30 consecutive days must collect a 2% city lodging tax on gross receipts, which stacks on top of the standard 8% sales tax.⁶

A separate 1% lodging and restaurant tax applies to both short-term lodging and restaurant sales of prepared food and beverages. “Prepared” is defined broadly in the city code, so heating prepackaged food counts; a gas station selling a hot sandwich is covered along with any sit-down restaurant.⁶ Alcoholic beverages served for on-premises consumption are subject to that 1%, but off-premises alcohol sales are not. A hotel room in Williston therefore carries both the 2% lodging tax and the 1% lodging and restaurant tax on top of the 8% general rate.

Use Tax on Out-of-State Purchases

Buying something from an out-of-state seller who doesn’t collect North Dakota sales tax doesn’t erase the tax. You owe use tax at the same rate, which for Williston residents means 8% on most goods brought into the city for personal use or business operations.² Items that weren’t originally bought for use in North Dakota are taxed based on fair market value when they enter the state, not the original purchase price.

You do get credit for sales tax already paid to another state. If you paid 4% where you bought the item, you owe North Dakota only the difference. If the other state’s rate equaled or exceeded North Dakota’s rate plus applicable local taxes, you owe nothing more. Individuals without a sales tax permit can submit use tax through the One Time Remittance form on the state’s website; businesses with permits report it on their regular returns through ND TAP.²

1
North Dakota Office of State Tax Commissioner. Local Taxes by Location Guideline – Rates Effective April 1, 2026
2
North Dakota Office of State Tax Commissioner. Sales and Use Tax
3
City of Williston, ND. Code of Ordinances – Chapter 23 Sales Tax
4
North Dakota Office of State Tax Commissioner. Sales Tax Exemptions and Incentives
5
North Dakota Office of State Tax Commissioner. Gross Receipts Tax – Farm Machinery and Farm Irrigation Equipment
6
ECode360. City of Williston, ND Code of Ordinances – Chapter 9 Licenses and Business Regulations – Article X City Lodging and Restaurant Tax