Key figures
North Dakota receivables
2026, with sources
Software: delivered or accessed
North Dakota’s 5% sales tax applies to commercial off-the-shelf software, which the Tax Commissioner treats as tangible personal property even when it is transferred electronically. Custom programs are exempt, and so are web hosting and separately billed computer time. Most guides read that as leaving pure SaaS untaxed; the line runs through whether the customer receives a copy of the program.
Products that bundle a downloadable client with a hosted service sit closer to the line. Separately stating the parts on the invoice keeps the nontaxable part out of the base. The same guideline treats maintenance on prewritten software as taxable when it is mandatory, and training as nontaxable when billed separately from manuals and materials.
Other digital products — music, video and reading material delivered electronically — are not taxed at all, which makes software the exception rather than the rule.
Nexus and filing
A remote seller must register once its taxable sales into North Dakota exceed $100,000 in the current or previous calendar year; the 200-transaction test was repealed effective July 1, 2019. Collection starts the next calendar year or 60 days after crossing the threshold, whichever comes first. Note that only taxable sales count, so a SaaS company with nontaxable subscriptions may never reach it.
Returns are filed monthly, quarterly or annually as set on the permit. City and county sales taxes are mostly administered by the Tax Commissioner on the same return. Sales made through a marketplace facilitator are the facilitator’s to collect.
Customer credits
Customer overpayments and unapplied credits that go dormant are reported to the Unclaimed Property Division by November 1.
The federal baseline
This page covers what North Dakota adds. The federal rules underneath it apply here too.
Common questions
Is SaaS taxable in North Dakota?
Usually not, but read the guideline. The Tax Commissioner taxes off-the-shelf software however it is delivered, and treats web hosting and separately billed computer time as nontaxable services. A subscription where the customer never receives a copy of the program generally falls on the service side; a download or a “load and leave” install falls on the taxable side.
When does a remote seller register?
Once taxable sales into North Dakota exceed $100,000 in the current or previous calendar year. Collection starts the following calendar year or 60 days after crossing the threshold, whichever is earlier.
Receivables next door
- MTMontana receivablesMontana has no sales tax, so SaaS sold to Montana customers is untaxed at the register; Montana receipts matter through the receipts-only income tax apportionment.
- SDSouth Dakota receivablesSouth Dakota taxes services and products transferred electronically, SaaS included, at 4.2% plus municipal rates through June 30, 2027. Remote sellers register at $100,000.
- MNMinnesota receivablesMinnesota charges 6.875% plus local taxes, still counts 200 sales toward nexus, and taxes prewritten software however it is delivered, which puts many SaaS products in scope.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the North Dakota guide
- AccountingAccounting and state tax in North DakotaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in North DakotaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in North DakotaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in North DakotaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in North DakotaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.