North Dakota car sales tax: 5% and what it applies to

• North Dakota charges 5%, and that rate is the same everywhere in the state — no county or city adds to it on a vehicle purchase.

• Taxed on top of the vehicle price: dealer-installed accessories.
• Not part of the taxable amount: the dealer doc fee and extended warranties and service contracts.
• Your trade-in comes off before tax is calculated.

• North Dakota has no sales tax on a car. It charges a 5% motor vehicle excise tax on the purchase price, the same rate everywhere in the state. No city or county adds to it. You pay it to the Motor Vehicle Division when the car is titled. Most dealers collect it for you and send it in as a service, but the law does not require them to.
• The tax is figured after your trade-in and after a manufacturer rebate applied at the sale, with no dollar limit on either and on new and used cars alike. Freight, dealer preparation and accessories are part of the price and are taxed.
• The dealer's doc fee is not taxed. The Tax Commissioner's guideline says document fees are not part of the taxable purchase price. North Dakota does not cap the fee, so it is negotiable.
• Extended warranties, maintenance plans and service contracts are not taxed. The guideline does not name GAP; the calculator treats it the same way.
• If you buy from a dealer outside North Dakota and register here, you still pay North Dakota's 5%, with a credit for sales or excise tax paid to the other state if that state gives a similar credit. Enrolled tribal members living on a North Dakota reservation, and veterans with a 100% service-connected disability, are exempt. The calculator does not apply those exemptions.

Source: North Dakota Century Code Chapter 57-40.3 — Motor Vehicle Excise Tax, § 57-40.3-02 · rules last verified Oct 11, 2026. Methodology.