North Dakota Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your North Dakota vacation rental property.

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Tax Types

What Taxes Apply to North Dakota Short-Term Rentals?

North Dakota STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

North Dakota applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 8%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

North Dakota's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 8% in Fargo and 8% in Bismarck. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While North Dakota doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and North Dakota's state income tax at 1.95%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

North Dakota's average effective property tax rate is 0.98%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in North Dakota?

Airbnb has agreements to collect and remit taxes in North Dakota — but coverage is not always complete.

Airbnb collects North Dakota's state-level lodging tax in most jurisdictions.
In Fargo and Bismarck: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your North Dakota tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in North Dakota?

In most North Dakota jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in North Dakota

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in North Dakota

Key tax facts every vacation rental host in North Dakota should know.

State lodging tax: 5%

Local taxes: 2–3% in major cities

State income tax: 1.95% (among lowest in US)

Property tax rate: ~0.98%

City Breakdown

Lodging Tax Rates by City in North Dakota

Combined lodging/occupancy tax rates for major vacation rental markets in North Dakota.

CityCombined Rate

Fargo

5% state + 2% city + 1% county

Bismarck

5% state + 3% local

Medora

5% state + 2% local

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About North Dakota Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in North Dakota.

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