What is North Dakota's car sales tax rate?

North Dakota does not apply its general sales tax to vehicles. Instead it charges a flat 5% motor-vehicle excise tax on the purchase price, collected when you register the vehicle. There is no additional county or city rate on this excise tax.

Does a trade-in reduce the tax in North Dakota?

Yes. North Dakota lets you deduct the value of a trade-in from the purchase price before applying the 5% excise tax. A higher trade-in directly lowers the taxable amount and the tax you owe.

Do manufacturer rebates reduce the taxable price?

No. In North Dakota the 5% excise tax is generally applied to the price before a manufacturer rebate. The rebate lowers the cash you pay but not the taxable base, so the tool treats it as a cash reduction only.

Are there local or county car taxes in North Dakota?

No. The 5% motor-vehicle excise tax is a flat statewide rate with no county or city surtax, which keeps the math simple compared with states that stack local sales-tax rates on vehicles.

Does this include registration and title fees?

No. This calculates only the excise tax. The registration (plate) fee and the one-time $5 title fee are separate; use the North Dakota Vehicle Registration Fee Calculator for those amounts.

North Dakota Car Sales Tax Calculator

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Buying a car in North Dakota is simpler than in most states for tax purposes: there is no general sales tax on vehicles and no stack of county rates. Instead a single flat 5 percent motor-vehicle excise tax applies, and a trade-in lowers the base. This calculator gives you the exact figure.

How it works

The excise tax applies to the price after a trade-in deduction:

taxable amount = price − trade-in
excise tax     = taxable amount × 5%

There is no local rate to add. A manufacturer rebate reduces the cash you hand over but, under North Dakota rules, not the taxable base, so the tool shows it only as a cash reduction in the out-the-door figure.

Example

On a 30,000 dollar car with a 6,000 dollar trade-in, the taxable amount is 24,000 dollars. At 5 percent the motor-vehicle excise tax is 1,200 dollars, collected when you register. That is the entire vehicle tax — no county or city add-on applies.

Notes

This covers the excise tax only. Add the registration (plate) fee and the one-time 5 dollar title fee for your full cost at the DOT. Out-of-state purchases brought into North Dakota are generally taxed on the same 5 percent basis, with credit for tax already paid elsewhere. Confirm current rules with the North Dakota Department of Transportation.