Car Sales Tax in North Dakota
The sales tax on car purchases in North Dakota is 5%.
Written by Amber Reed
Reviewed by Jessica Barrett
North Dakota collects a 5% state sales tax when you purchase a new or used car.
If you’re about to buy a car, you’re probably focused on your vehicle’s list price. But in order to make a realistic budget, you’ll need to think about additional costs as well. It’s important to factor sales tax into your budget, but precisely how much sales tax you’ll pay depends on where you buy your car.
If you buy a car in North Dakota, you’ll pay a 5% sales tax on any car purchase, whether the vehicle is new or used. Dealing with numbers can sometimes get confusing, that’s why
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How much is the car sales tax rate in North Dakota?
The statewide sales tax in North Dakota is 5%, and that rate applies to any vehicle purchased anywhere in the state. Although North Dakota’s regular sales tax can range from 4.75% up to 8.5%, if you’re buying a car a flat 5% sales tax is always applied.
How are car trade-ins taxed in North Dakota?
When you buy a car in North Dakota, most dealerships will allow you to trade in your old vehicle and apply that amount to the total cost of your new car. The money you get from your trade-in is not subject to sales tax in North Dakota, making trade-ins a great way to save money on a new car.
To break it down, let’s say you’re buying a new
Subaru Impreza
for $23,000 in North Dakota. You decide to trade in your old Toyota Corolla
for $2,000. Since the value of your trade vehicle is exempt, you’ll only pay the 5% sales tax on $21,000 of your purchase.Dealer rebates and incentives, on the other hand, are not exempt from sales tax. This means that in North Dakota, a vehicle purchase is taxed before rebates or incentives are applied, so you’ll pay taxes on the full price of your vehicle, whether or not you are getting a rebate.
MORE: Trade-in vs private sale: What’s the best way to sell your car?
How to calculate sales tax on a car in North Dakota
If you live in North Dakota, you will always pay a flat 5% sales tax. The statewide and county sales tax are not applied to vehicle purchases.
Key Takeaway If you’re buying a new or used car in North Dakota, you will be charged a 5% sales tax.
Exemptions from North Dakota car sales tax
Sales tax applies to almost all car purchases in North Dakota, but there are a few scenarios where you might be exempt from sales tax. North Dakota is a member of the
Streamlined Sales Tax and Use Agreement
, so you can fill out the Uniform Sales and Use Tax Resale Certificate
if you believe you qualify for an exemption. You might qualify for a car sales tax exemption if you are purchasing a vehicle for:- A government entity
- A federally chartered corporation
- A public or private non-profit school
- A hospital, nursing home, care facility, assisted living facility, or end-of-life facility licensed by the North Dakota Department of Health and Human Services
- A qualifying voluntary health organization
- A qualifying senior citizen organization
If you’re not sure if you qualify for an exemption, you can read over the detailed guidelines on
North Dakota’s State Government website
.MORE: North Dakota car inspection
How to estimate North Dakota tax, title, and registration fees
When you buy a new car in North Dakota, sales tax isn’t the only extra cost you’ll be responsible for. You will also need to pay a title fee, a
vehicle registration
fee, and the costs associated with transferring your license plates. Additionally, most dealerships in North Dakota will charge a documentation fee with the purchase of a new vehicle.Here’s a breakdown of the extra costs you might need to pay when you buy a car in North Dakota:
Cost type | Average cost |
|---|---|
Sales tax | 5.959% |
Registration fee | $49 to $274 |
Title fee | $5 |
Plate transfer | $5 |
Documentation fee | $175 |
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In North Dakota, registration fees are determined based on the age and weight of your car. To find out the exact fee you’ll need to pay, check the North Dakota Department of Transportation’s
online calculator
. MORE: Is car insurance tax deductible?
How to find affordable car insurance in North Dakota
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How much is sales tax on a used car in North Dakota?
In North Dakota, the sales tax for a used car is the same as it is for a new one—5%.
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