They say seven soldiers and 80 militants were also killed as the army repelled Tuesday's attack in Arbinda, in northern Soum province.
President Roch Marc Christian Kaboré declared two days of national mourning.
Jihadist groups have stepped up attacks in Burkina Faso and other West African countries, in recent years.
The violence has continued despite Western efforts to help regional governments combat the insurgents. In November, 13 French troops died in a helicopter collision during an operation in southern Mali, near the border with Burkina Faso
Last weekend, French President Emmanuel Macron highlighted the fight against militants in the Sahel region during a visit to Niger.
"The coming weeks are absolutely decisive for our fight against terrorism," he said.
Tuesday's attack was carried out by dozens of fighters on motorbikes and lasted several hours. No group has so far said it was behind it, but groups allied to al-Qaeda or Islamic State are active in the region.
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