Are digital goods taxable in North Dakota?
Mostly no. North Dakota exempts items delivered electronically, so downloaded content is not taxed. Prewritten software is carved out of that exemption and stays taxable.
| Short answer | Content no; software yes |
|---|---|
| Authority | N.D.C.C. 57-39.2-04(54) |
| Last reviewed | 2026-09-30 |
Why
N.D.C.C. 57-39.2-04(54) exempts items delivered electronically. Downloaded e-books, music, video and data fall within it.
Subdivision (54)(d) keeps prewritten software downloads and load-and-leave installations taxable.
Business vs. consumer buyers
AgentTax applies the same answer to business and consumer buyers here. Only a few states change the answer by buyer: Iowa and Washington exempt some business purchases by statute, and Maryland and Ohio split the rate or taxability by use.
Where the line is
- Any download that is software, rather than content, is taxable.
How AgentTax classifies digital goods
Downloads the buyer keeps: e-books, music, video, data files and other digital products transferred electronically. AgentTax routes downloads and data purchases to its digital good category.
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Open the calculatorFrequently asked questions
- Is downloaded software taxable in North Dakota?
- Yes. The electronic delivery exemption in N.D.C.C. 57-39.2-04(54) carves out prewritten software.
Related
- All North Dakota digital tax answers
- Is SaaS taxable in North Dakota?
- Are information services taxable in North Dakota?
- Is data processing taxable in North Dakota?
- Digital goods: every state we cover
- Are digital goods taxable in Arkansas?
- Are digital goods taxable in Georgia?
- Are digital goods taxable in Idaho?
- Are digital goods taxable in Indiana?
- Are digital goods taxable in Iowa?
- Are digital goods taxable in Kansas?
Sources
- N.D.C.C. 57-39.2-04(54)
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.