North Dakota Vehicle Sales Tax & Fees [+ Calculator]
I am a serial entrepreneur and a consumer advocate. When I’m not helping car buyers, I love working on ventures that have a positive impact.
I run a cause marketing agency and serve on the board of Vayu Global Health where we are disrupting the medical industry and preventing the needless deaths of mothers and babies during childbirth.
It’s exciting to buy a new (or new for you) car, but it’s also far from cheap.
Things like sales tax and other fees are often forgotten about in the excitement of making a new car purchase. But in North Dakota, you’ll need to be prepared to spend additional money on these extra costs.
Here’s what to expect when it comes to taxes and fees in the state of North Dakota.
Table of Contents
- How Much Is the Car Sales Tax in North Dakota?
- How to Calculate North Dakota Sales Tax on a Car
- North Dakota Car Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car?
- Which County Has the Highest Tax? Which Has the Lowest?
- Car Sales Tax for Trade-Ins in North Dakota
- Car Sales Tax on Private Sales in North Dakota
- Tax on Rebates & Dealer Incentives
- North Dakota DMV/State Fees
- When Sales Tax Is Exempt in North Dakota
- North Dakota EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in North Dakota?
The state sales tax on a car purchase in North Dakota is 5%.
However, this does not include any potential local or county taxes. The average local tax rate in North Dakota is 0.959%, which brings the total average rate to 5.959%.
As an example, if you were to purchase a new sedan at a purchase price of $20,000, then you will have to pay an additional $1,000 in tax.
How to Calculate North Dakota Sales Tax on a Car
You can calculate the sales tax in North Dakota by multiplying the final purchase price by .05%.
For example, let’s say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax:
$30,000 x.05 = $1,500
This means that your sales tax is $1,500 on a $30,000 purchase price.
Calculate Car Sales Tax in North Dakota Example:
- Initial Car Price: $30,000
- Sales Tax Rate: 5%
- Trade-In Amount: $5,000
- Incentives/Rebates: $2,000
Sales Tax = ($30,000 - $5,000) * .05
Sales Tax = $1,250
Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.
North Dakota Car Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
The sales tax is the same 5% on a used vehicle.
For example, if you were to purchase a used car for $15,000, then you will have to pay an additional $750 in sales tax.
Which County Has the Highest Tax? Which Has the Lowest?
The North Dakota county with the highest tax is Williams at 8.5%.
The North Dakota counties with the lowest tax are Adams, Bowman, and Slope counties with a rate of 5%.
Car Sales Tax for Trade-Ins in North Dakota
You don’t have to pay sales tax on trade-ins in North Dakota. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.
As an example, let’s say you are purchasing a new SUV for $25,000 and your trade-in is worth $5,000. You will subtract the trade-in value by the purchase price and get $20,000. Therefore, your car sales tax will be based on the $20,000 amount.
Car Sales Tax on Private Sales in North Dakota
A sales tax is required on all private vehicle sales in North Dakota.
As an example, if you purchase a truck from a private party for $10,000, then you will pay 5% of that amount to the North Dakota DMV.
Tax on Rebates & Dealer Incentives
You do have to pay tax on dealer rebates and incentives in North Dakota. In other words, do not subtract the incentive/rebate amount from the car price before calculating sales tax.
As an example, if you are purchasing a new car for $30,000 with a $5,000 rebate, you will pay sales tax on the $30,000 final cost of the car.
North Dakota DMV/State Fees
There are some other state and DMV fees associated with the purchase of a vehicle in North Dakota.
A few of these fees include:
- Registration Fee: $49 to $274
- Title Fee: $5
- Plate Transfer Fee: $5
North Dakota Dealership Fees
Dealerships apply extra fees, sometimes referred to as “doc fees,” with the sale of the car.
Though these fees vary based on the dealership, the average fee in North Dakota is $175, with no statewide limit on how much dealerships can charge.
When Sales Tax Is Exempt in North Dakota
The following events are exempt from car sales tax in North Dakota:
- You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.
- The vehicle was received as part of an inheritance.
- You receive the vehicle in a divorce.
- You receive the vehicle from an individual’s revocable trust.
North Dakota EV Rebates & Incentives
North Dakota does not offer a rebate on EVs or hybrid vehicles. However, all North Dakota residents are eligible for a federal EV rebate of up to $7,500.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
