Are digital products taxable in North Dakota in 2026?

For 2026, North Dakota follows its existing "specified digital products" definition. Where the product is taxable, North Dakota applies the 5.00% state rate plus any applicable local rates at the buyer's address; non-taxable categories (often live services or specific exemptions) remain outside collection. Confirm category-by-category status with the North Dakota Department of Revenue before invoicing.

Does North Dakota tax digital downloads (eBooks, music, etc.)?

North Dakota has specific rules for "specified digital products". Some states treat all digital goods as taxable; others exempt specific categories. Check the current North Dakota DOR guidance for your product type.

Are online courses taxable in North Dakota?

Live-instruction courses are usually non-taxable services. Pre-recorded or on-demand courses are often taxable as specified digital products. Check North Dakota's specific definitions.

Do I apply North Dakota's general rate to digital products?

Yes — if the product is taxable, the 5.00% state rate plus applicable local rates apply at the buyer's address.

Are digital software subscriptions taxable in North Dakota in 2026?

Digital software subscriptions usually fall outside the "specified digital products" rules and are taxed instead under North Dakota's prewritten ("canned") software and SaaS rules. If North Dakota taxes electronically delivered software or SaaS, the subscription is taxable at the 5.00% state rate plus local rates; if North Dakota treats SaaS as a non-taxable service, the subscription is not taxed. Check the North Dakota SaaS guide and confirm with the Department of Revenue before invoicing.

North Dakota Digital Products Sales Tax Guide — 2026

Updated 2026-05-08

Guide content last reviewed: 2026-06-04

If your Digital Products business sells $100,000 into North Dakota in a calendar year, you have economic nexus and must register, collect, and remit North Dakota sales tax.

Sales tax on digital products in North Dakota

“Digital products” covers eBooks, audiobooks, video downloads, online courses, streaming subscriptions, digital artwork, stock photos, music, and similar non-physical delivered goods. Whether North Dakota taxes them depends on how the state classifies the product — “specified digital products”, “electronic transfer of canned software”, or a service. Rules vary more than for physical goods.

If taxable in North Dakota, the product is subject to 5.00% state rate plus any applicable local rate based on the buyer's address.

Which digital products does North Dakota tax?

Most states sort digital goods using the Streamlined Sales Tax definition of “specified digital products”, which splits them into three subcategories a state can tax or exempt independently:

Digital audio-visual works — downloaded or streamed movies, shows, and recorded events. Streaming video subscriptions fall here.
Digital audio works — downloaded or streamed music, podcasts, audiobooks, and ringtones. Streaming music subscriptions fall here.
Digital books — eBooks. Newspapers, periodicals, blogs, and databases are excluded from the “book” definition and follow their own rules.

Because a state may tax one subcategory and exempt another, “are digital products taxable” rarely has a single yes/no answer. Where North Dakota taxes a subcategory, the charge is subject to the 5.00% state rate plus any local rate at the buyer’s address. Software subscriptions (SaaS and electronically delivered “canned” software) sit outside this framework and follow North Dakota’s separate software-taxability rule — see the SaaS guide for that determination.

Framework source: Streamlined Sales Tax Governing Board — “Specified Digital Products” definition (SSUTA §332). date_retrieved: 2026-06-04. State-by-state taxability still varies; verify each subcategory with the North Dakota Department of Revenue before invoicing.

Key distinctions

Specified digital products. Many states (adopting Streamlined Sales Tax definitions) tax SDPs — digital audio/video/books.
Online courses and education. Most states treat live-instruction courses as non-taxable services but treat pre-recorded course access as taxable digital products. Watch for this split if you sell both.
Subscriptions. Bundled subscription boxes with mixed digital + physical content are often taxed as a single taxable bundle — you can't allocate across taxable and non-taxable components unless the invoice separately states them.
B2B vs B2C. Some states exempt B2B digital products when bought for resale or when the buyer has a direct-pay permit. Keep certificates on file.

Common digital-product mistakes in North Dakota

Treating all digital products the same across states — eBook tax treatment differs from SaaS, which differs from streaming.
Bundling digital + physical goods without a line-item breakdown. Most states tax the full bundle at the physical rate if not itemized.
Applying origin-based sourcing (your state's rate) when most states source digital products to the buyer's billing or shipping address.

North Dakota nexus note

Economic nexus in North Dakota triggers at $100,000 in gross sales delivered into North Dakota in the current or prior calendar year. No transaction count threshold.

What to do next

Read the full North Dakota overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

Frequently asked questions

Are digital products taxable in North Dakota in 2026?: For 2026, North Dakota follows its existing "specified digital products" definition. Where the product is taxable, North Dakota applies the 5.00% state rate plus any applicable local rates at the buyer's address; non-taxable categories (often live services or specific exemptions) remain outside collection. Confirm category-by-category status with the North Dakota Department of Revenue before invoicing.
Does North Dakota tax digital downloads (eBooks, music, etc.)?: North Dakota has specific rules for "specified digital products". Some states treat all digital goods as taxable; others exempt specific categories. Check the current North Dakota DOR guidance for your product type.
Are online courses taxable in North Dakota?: Live-instruction courses are usually non-taxable services. Pre-recorded or on-demand courses are often taxable as specified digital products. Check North Dakota's specific definitions.
Do I apply North Dakota's general rate to digital products?: Yes — if the product is taxable, the 5.00% state rate plus applicable local rates apply at the buyer's address.
Does North Dakota charge sales tax on digital streaming services in 2026?: Under the "specified digital products" framework most states use, streaming video is a "digital audio-visual work" and streaming music is a "digital audio work." Where North Dakota taxes that subcategory, the streaming charge is subject to the 5.00% state rate plus any local rate at the buyer's address; where North Dakota exempts it, the subscription is not taxed. States can tax one subcategory and exempt another, so confirm North Dakota's current treatment with its Department of Revenue.
Are digital software subscriptions taxable in North Dakota in 2026?: Digital software subscriptions usually fall outside the "specified digital products" rules and are taxed instead under North Dakota's prewritten ("canned") software and SaaS rules. If North Dakota taxes electronically delivered software or SaaS, the subscription is taxable at the 5.00% state rate plus local rates; if North Dakota treats SaaS as a non-taxable service, the subscription is not taxed. Check the North Dakota SaaS guide and confirm with the Department of Revenue before invoicing.

Sources

date_retrieved: 2026-05-08