If you’re buying a car, truck, or RV in North Dakota, there’s a flat 5% Motor Vehicle Excise Tax that applies to most vehicle purchases. While that rate is lower than in many states, buyers of high-dollar or specialty vehicles can still end up paying thousands more than expected. Fortunately, there are legal strategies to reduce or avoid the tax altogether, especially when purchasing out of state.
This article breaks down how North Dakota’s vehicle tax system works, how it compares to other states, what exemptions are available, and how Ride Legal helps vehicle buyers save thousands while staying fully compliant.
North Dakota Vehicle Sales Tax Overview
North Dakota does not charge general sales tax on vehicles. Instead, it levies a 5% Motor Vehicle Excise Tax (MVET) on most vehicle transactions (North Dakota Department of Transportation – Motor Vehicle Tax FAQ).
Key points:
- Applies to dealer and private-party sales
- Calculated on the purchase price (or fair market value, if underreported)
- Collected at time of titling and registration
- Trade-in credit is allowed on dealer purchases
- No local vehicle tax or municipal add-ons
This excise tax is also applied to vehicles brought into the state within 90 days of purchase from out of state, unless tax was already paid elsewhere.
Example: North Dakota Vehicle Tax Costs
Here are examples of MVET applied to typical vehicle price points:
| Vehicle Price | Tax Rate | Estimated Tax Owed | Total with Tax |
|---|---|---|---|
| $30,000 | 5% | $1,500 | $31,500 |
| $50,000 | 5% | $2,500 | $52,500 |
| $75,000 | 5% | $3,750 | $78,750 |
| $100,000 | 5% | $5,000 | $105,000 |
How North Dakota Compares to Other States
North Dakota’s 5% excise tax is simpler than most states since it doesn’t include any local tax. But for high-end vehicles, the cost still adds up—especially when compared to states with caps or no tax at all.
- California (Los Angeles County): 9.5% – $100,000 = $9,500 tax (California Department of Tax and Fee Administration – Rates)
- Florida (Miami-Dade): 7% with a $5,000 cap – max ~$700 tax (Florida Department of Revenue)
- New York (Yonkers): 8.875% – $100,000 = $8,875 tax (New York Department of Taxation – Sales Tax Rates)
- Montana: 0% – No vehicle sales tax (Montana Department of Justice – Vehicle Registration)
Many buyers legally register vehicles in Montana through LLCs to eliminate this tax burden entirely—saving $3,000–$10,000+ in the process.
Vehicle Tax Exemptions in North Dakota
Some buyers may qualify for an MVET exemption:
- Transfers between spouses, parents, or children
- Gifts of vehicles (requires gift affidavit)
- Inheritance
- Court-ordered transfers (divorce, legal separation)
- Military exemptions
- Nonprofit and government agency ownership
All exemptions require appropriate documentation submitted to the North Dakota Department of Transportation (NDDOT – Sales Tax Exemption Chart).
10 Ways to Reallocate Your Tax Savings
Avoiding North Dakota’s 5% excise tax on a $100,000 vehicle means saving $5,000. Here’s how to reallocate that wisely:
- Upgrade to a premium or performance trim
- Apply ceramic coating or PPF for resale protection
- Add aftermarket wheels, tires, or suspension
- Buy an extended vehicle service plan
- Install infotainment or driver-assist systems
- Cover full insurance and registration for a year
- Fund a multi-state road trip or event travel
- Outfit your RV or trailer with comfort upgrades
- Invest in resale prep, detailing, or dyno tuning
- Put the savings toward your next vehicle build
Why Use Ride Legal
At Ride Legal, we help North Dakota buyers register high-value vehicles through a Montana LLC, where the vehicle sales tax rate is 0%. Our process is fully legal, streamlined, and used by thousands of customers across the country.
We specialize in:
- Forming compliant Montana LLCs
- Titling and registering vehicles of all types
- Legal compliance for personal and business buyers
- Support for exotic, luxury, RV, trailer, and utility vehicles
Frequently Asked Questions About North Dakota Vehicle Sales Tax
Q: What is the vehicle tax rate in North Dakota?
A: The state charges a 5% Motor Vehicle Excise Tax, applied at titling and registration (ND DOT – Sales Tax Exemption FAQ).
Q: Does the tax apply to private-party sales?
A: Yes. The same 5% tax applies to both private and dealer sales.
Q: Can I deduct trade-in value?
A: Yes, but only when purchasing through a dealership.
Q: Can I avoid the tax legally?
A: Yes—through exemptions or by registering via a Montana LLC in a tax-free state.
Don’t Overpay on Vehicle Tax in North Dakota
While 5% may not sound extreme, it adds up fast on premium or exotic vehicles. Ride Legal helps you reduce or eliminate your vehicle tax burden through legal Montana registration—saving thousands without any legal risk.
Visit www.ridelegal.com to start saving today.
