North Dakota Sales Tax Guide for SaaS and E-Commerce Businesses 2025
North Dakota imposes a 5% statewide sales tax on tangible personal property, with local jurisdictions adding up to 3%. According to the North Dakota Office of State Tax Commissioner, SaaS (software accessed via remote subscription without tangible transfer) is generally not taxable.
This guide explains how SaaS, software, digital goods, and e-commerce are treated in North Dakota, including nexus thresholds, marketplace facilitator rules, filing schedules, and registration steps.
Last updated: October 2025
Quick Reference: North Dakota Sales & Use Tax 2025
| Topic | Details |
|---|---|
| State rate | 5% (ND Sales & Use Tax) |
| Local rates | 0%–3%, depending on city or county (Local Taxes – City & County) |
| Economic nexus threshold | Remote sellers with over $100,000 in gross sales into North Dakota must register and collect sales tax (Remote Seller Law) |
| Is SaaS taxable? | No. SaaS is exempt when no tangible property is transferred |
| Marketplace facilitators | Must collect if they meet nexus thresholds (Marketplace Facilitator Guidance) |
| Registration portal | ND TAP (Taxpayer Access Point) |
| Tax agency | North Dakota Office of State Tax Commissioner |
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SaaS, Software & Digital Products in North Dakota
North Dakota distinguishes between tangible software, electronically delivered software, and remote-access (SaaS) models.
- SaaS or remote access software: Not taxable when accessed online without transferring a tangible copy
- Prewritten (canned) software: Taxable whether delivered by download or physical media
- Custom software: Exempt when designed or substantially modified for one client
- Digital goods (e-books, streaming, audio/video): Exempt if delivered electronically and not bundled with tangible property
See official guidance: Sales, Use, and Gross Receipts Tax Requirements PDF
E-Commerce & Tangible Goods in North Dakota
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Taxable when delivered to a North Dakota customer |
| SaaS or remote software | No | Exempt when no physical transfer occurs |
| Prewritten software | Yes | Taxable if downloaded or provided on tangible media |
| Custom software | No | Exempt for unique or customized projects |
| Digital goods | No | Exempt if delivered electronically only |
Local city and county rates may apply. See Local Taxes by Location (GL-21825) for details.
Economic Nexus & Remote Seller Rules
Remote sellers and marketplace facilitators must collect North Dakota sales tax when exceeding $100,000 in gross sales into the state within the current or prior calendar year.
The 200-transaction threshold does not apply in North Dakota.
Official guidance:
Marketplace Facilitator Rules
Marketplace facilitators are required to collect and remit sales tax on behalf of sellers once the $100,000 nexus threshold is reached.
This applies to sales of taxable tangible goods. SaaS and digital products generally remain exempt under ND law.
Reference: ND Marketplace Facilitator Guidance
Registration & Filing
- Register online through ND TAP – Taxpayer Access Point
- File sales/use tax returns via ND TAP based on assigned filing frequency (monthly, quarterly, or annual)
- Local taxes may apply; verify city or county rates using Local Taxes by Location (GL-21825)
- Filing deadlines are listed on Sales & Use Tax Deadlines
Even if all sales are exempt SaaS transactions, registration may still be required if other taxable activity or nexus exists.
Penalties & Compliance Notes
- Late filing or payment may result in penalties and interest
- Maintain documentation of how software and digital products are delivered
- Distinguish exempt SaaS charges from taxable software or bundled transactions
- Review official guidance annually as the state updates its sales/use tax interpretations
References:
FAQs: North Dakota Sales Tax for SaaS & E-Commerce
Is SaaS taxable in North Dakota?
No. SaaS and remotely accessed software are not taxable if no tangible property is transferred.
Are software downloads taxable?
Yes. Prewritten software is taxable whether downloaded or on a physical device.
Are digital goods like e-books or streaming taxable?
No. Purely digital goods delivered electronically are generally exempt.
What is the economic nexus threshold?
$100,000 in gross sales into North Dakota. No transaction count threshold applies.
Do marketplace facilitators have to collect?
Yes, for taxable tangible goods when they meet the nexus threshold.
Where do I register and file?
Through ND TAP (Taxpayer Access Point).
Official North Dakota Resources
- North Dakota Sales & Use Tax
- Remote Seller & Economic Nexus Overview
- Marketplace Facilitator Guidance
- Sales, Use, and Gross Receipts Tax Requirements (PDF)
- Local Taxes by Location – GL-21825
- Local Taxes – City and County Taxes
- Sales & Use Tax Filing Deadlines
- ND TAP – Taxpayer Access Point
- North Dakota Office of State Tax Commissioner
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