How Much are Used Car Sales Taxes in North Dakota?

When buying a used car in North Dakota, don’t get caught off guard by the state’s vehicle sales tax. There is a 2% statewide sales tax on vehicle purchases in North Dakota.

Unlike many other states, North Dakota doesn’t have local sales tax; 2% is the most car sales tax you’ll pay in North Dakota.

Keep reading to get the full scoop on North Dakota sales tax liabilities for your used vehicle purchase.

When buying a vehicle in North Dakota, you’ll pay 2% of the vehicle’s purchase price, whether you purchase from a private seller or a car dealer. North Dakota's sales tax law does not discriminate between the two.

Unless you qualify for a tax exemption (discussed below), you are required to pay tax on your vehicle purchase.

Motor vehicle sales tax is a percentage of a car's purchase price owed to the state of North Dakota when you buy a car and register it with the North Dakota Department of Transportation.

The North Dakota Department of Transportation (NDDOT) establishes what the car is worth on the open market (it’s fair market value, or FMV) by referring to Kelley Blue Book, NADA, or other reliable sources on used car prices.

If NDDOT concludes that the car's FMV is significantly greater than its purchase price, they can opt to base tax on the Kelley Blue Book or NADA assessed value.

Note that underreporting the purchase price of a vehicle in order to avoid paying sales tax is illegal.

North Dakota's sales tax and use tax are both 2%. Each is a percentage of a car's purchase price owed to the state of North Dakota when you buy a car and register it in North Dakota.


If you paid sales tax on the purchase of a vehicle in another state, North Dakota deducts that tax so that you are not taxed twice. There are three potential scenarios.

1. You paid exactly 2% sales tax in Alabama; North Dakota will give you a pass.
2. You paid no sales tax in another state, in which case you owe the full 2% North Dakota tax rate. Let's say you bought a used car in Montana and didn’t pay any sales tax, given Montana’s 0% tax rate. You’ll pay North Dakota’s full 2% use tax.
3. You paid more than 2% in the other state (for example, South Dakota levies a 4% tax on every used vehicle purchase). We wish we could tell you that North Dakota will give you a refund, but no. At least they won’t charge you any more tax.

Here's how to pay the sales tax owed after buying a vehicle from a private seller in North Dakota:

1. To transfer ownership of the vehicle, you and the seller must complete the necessary paperwork, including the bill of sale (when you buy a used car on PrivateAuto, we provide an official North Dakota bill of sale and prompt both of you to sign it in our app at the appropriate stage of the transaction process). You'll need the following documents to transfer car ownership in a private transaction:
2. The original car title.
3. Proof of North Dakota insurance.
4. Valid driver’s licenses or IDs
5. Calculate the amount of sales tax due. Multiply the vehicle's purchase price by 2%.
6. Submit payment for all taxes and fees.
7. Get your registration, title, and new license plates. Once you've paid the sales tax and turned in the necessary documentation, you'll get your new registration and title for the car. The title and registration will show that you bought the car and that the sales tax has been paid. You will get your new license plates by mail.

If you buy a used car from a private seller,it is recommended that both you and the seller go to a North Dakota Motor Vehicle Division branch to finish the transaction, which protects both of you.

Motor vehicle taxes are something you just can't avoid—they are a part of our lives. You are required by law to pay sales tax on private party used vehicle purchases in North Dakota or any other state that charges sales tax—unless you meet an exemption.

You can be exempt in North Dakota if you are a:

A lot of people mistakenly believe that buying a car from a North Dakota dealer saves money. The opposite is true: going to a North Dakota dealer costs you more money, and it's a pain—unless spending 3 hours in a North Dakota dealership is your idea of a good time.

We do admit that dealers bring a certain amount of convenience that you don’t traditionally get in private sales. In fact, that’s why we exist. PrivateAuto gives you dealer-like convenience in the palm of your hand while allowing you to transact peer-to-peer with regular folks like yourself.

By shopping for used vehicles from private sellers on PrivateAuto, you avoid doc fees and get lower prices.

If you're in the market for a used vehicle, you'll want to calculate the applicable sales tax. With our used car sales tax calculator, calculating sales tax has never been easier. This free online car sales tax calculator calculates the amount of tax you must pay on a used car purchase based on your sales tax rate (2%) and the vehicle's price.

PrivateAuto is the only transactional marketplace where you can sell and buy vehicles conveniently.

Our innovative platform connects buyers and sellers and gives them all the tools to complete the deal, from in-app financing to secure messaging to integrated payments. You can also schedule a test drive and negotiate the price without ever disclosing your personal information.

Here’s how you can sell your car in North Dakota with a few simple steps:

1. Gather the required paperwork for selling a car in North Dakota
2. Register on PrivateAuto and get verified
3. List your vehicle
4. Set your terms
5. Vet incoming offers
6. Choose a buyer
7. Schedule a meeting
8. E-sign documents
9. Get paid instantaneously with PrivateAuto Pay
10. Transfer title