South Dakota Sales Tax

The current state sales tax rate in South Dakota (SD) is 4.5 percent. The total tax rate might be as high as 6.5 percent depending on local municipalities. Other, local-level tax rates in South Dakota are relatively complex when compared to other states’ local-level tax rates. In addition to the sales tax, cities can levy a 2% municipal sales and use tax and a 1% municipal gross receipts tax (on certain goods and services). Tribal governments may also levy a sales tax. Compliance is complicated and time-consuming in South Dakota because of the multiple local taxing levels that must be monitored and maintained on a regular basis. All retail sales in South Dakota are subject to sales tax, including the sale, lease, or rental of tangible personal property, as well as any commodity transferred electronically. Sales tax applies to a wide range of services. South Dakota, as a Streamlined Sales Tax state, invites out-of-state businesses who aren’t compelled to file sales tax reports to voluntarily register and collect.

Sales Tax Rates in South Dakota by County

In South Dakota, when do you have to charge sales tax?

If your business has a sales tax nexus in South Dakota, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the South Dakota government’s sales tax website to see if you should be charging sales tax in your state.

In South Dakota, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in South Dakota. There are also South Dakota sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the South Dakota government’s tax website for a complete list of exemptions.

What is South Dakota known for?

South Dakota is known for:

• Mount Rushmore
• Agriculture
• Native American culture

South Dakota Fun Facts

• Dakota is the Sioux word for “friend” or “ally.” The Dakota Territory was divided into South Dakota and North Dakota on November 2, 1889.
• The most famous point of interest in South Dakota is the Mount Rushmore National Memorial, located in Pennington County. It opened on October 31, 1941.
• South Dakota is the only state whose name does not share a single letter with that of its capital (Pierre).
• Jewel Cave in Custer County, South Dakota, is the second largest cave system in the United States, and third largest in the world. This cave system contains 181.89 miles of mapped passageways.
• The largest and best-preserved Tyrannosaurus Rex fossil in the world was discovered by Sue Hendrickson near Faith, South Dakota, in 1990. The fossil was named Sue in Sue Hendrickson’s honor.
• The geographical center of the United States is approximately 20 miles north of Belle Fourche, South Dakota.
• Mitchell, South Dakota, is the home of the world’s only Corn Palace.
• South Dakota is the only state with an official State Jewelry: Black Hills gold.
• Lemmon, South Dakota, has the world’s largest Petrified Wood Park.

Tourist Attractions in South Dakota

• Badlands National Park: National park located in southwestern South Dakota.
• Bear Country USA: Drive-through wildlife park in Rapid City, South Dakota.
• Black Hills National Forest: National forest on the border of South Dakota and Wyoming.
• Bullock Hotel: Historic hotel in Deadwood, South Dakota.
• Crazy Horse Memorial: Monument in Crazy Horse, South Dakota.
• Corn Palace: Multi-purpose arena in Mitchell, South Dakota.
• Custer State Park: State park in Custer, South Dakota.
• Falls Park: Public park in Sioux Falls, South Dakota.
• Great Plains Zoo: Zoo in Sioux Falls, South Dakota.
• Harney Peak: The highest natural point in South Dakota, located in the Black Hills National Forest in southern Pennington County.
• Mount Rushmore: Massive mountainside sculpture depicting four former United States presidents, located in Keystone, South Dakota.
• Reptile Gardens: Wild animal park in Rapid City, South Dakota.
• Spearfish Canyon: Gorge in Spearfish, South Dakota.
• Sylvan Lake: Lake in East Custer, South Dakota.
• Terry Peak: Ski area in Lead, South Dakota.
• Washington Pavilion: Art gallery and science museum in Sioux Falls, South Dakota.
• Wind Cave National Park: National park located in southwestern South Dakota.