2026 tax year · North Dakota
Marketplace seller taxes in North Dakota
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is your costs, in North Dakota that gap is worth $5,937 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what North Dakota and the IRS charge against.
What that leaves you owing in North Dakota
North Dakota uses graduated 2026 income tax brackets topping out at 2%, across 3 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| North Dakota income tax | $0 |
| Total tax | $2,642 |
| Effective rate on gross | 5.9% |
Earning more in North Dakota
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | North Dakota tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $0 | $2,119 | 14.1% |
| Steady side income | $45,000 | $0 | $45,000 | $0 | $8,579 | 19.1% |
| Full-time | $72,000 | $0 | $72,000 | $410 | $15,214 | 21.1% |
Selling into and out of North Dakota
Income tax follows you: North Dakota taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around North Dakota would charge:
| State | Its tax | vs North Dakota |
|---|---|---|
| South Dakota | No income tax | same |
| Montana | $199 | +$199 |
| Minnesota | $975 | +$975 |
- South Dakota works out the same as North Dakota on this income.
- Montana would take $199 more, $199 against North Dakota's $0.
- Minnesota would take $975 more, $975 against North Dakota's $0.
Marketplace seller tax questions in North Dakota
How much should a North Dakota seller set aside?
About 5.9% of gross on the $45,000 example, $2,642 across self-employment tax, federal income tax and $0 to North Dakota. In practice that means moving about $59 of every $1,000 payout into a separate account the day it lands, and sending roughly $661 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what North Dakota taxes?
No. North Dakota taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the North Dakota bill is $0 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 60% of the gross never becomes taxable income, but only for the seller who kept the records to prove it.