South Dakota

 
 

The facts on South Dakota’s Tax Climate

South Dakota's Individual Income Tax System
South Dakota levies no individual income tax, joining seven other states with the same policy: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

South Dakota's Corporate Income Tax System
South Dakota levies no corporate income tax, joining three other states with the same policy: Nevada, South Dakota, and Wyoming.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita

South Dakota Sales and Excise Taxes
South Dakota levies a 4% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 1.83%. South Dakota's state and local governments collect $1338 per person in general sales taxes and $450 per person in excise taxes, for a combined figure of $1789, which ranks 11th lowest nationally. South Dakota's gasoline tax stands at 22¢ (18th lowest nationally), while its cigarette tax stands at $1.53 (23rd highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

South Dakota Property Tax Collections Average
South Dakota's state and local governments collected approximately $1196 per person in property taxes, which ranks 23rd lowest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 4th in South Dakota

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, South Dakota taxpayers worked until April 4th (3rd earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: North Dakota, April 25th (ranked 9th latest nationally); Minnesota, April 29th (ranked 5th latest nationally); Iowa, April 13th (ranked 19th earliest nationally); Nebraska, April 14th (ranked 23rd earliest nationally); Wyoming, April 17th (ranked 21st latest nationally); and Montana, April 14th (ranked 23rd earliest nationally).

South Dakota's State and Local Tax Burden Below National Average

South Dakota's 2011 tax burden of 7.06% ranks 3rd lowest out of 50 states, and is below the national average of 9.8%. South Dakota's taxpayers pay $3052 per capita in state and local taxes.
South Dakota's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

South Dakota's 2014 Business Tax Climate Index Ranks 2

South Dakota ranks 2nd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: North Dakota, 28th, Minnesota, 47th, Iowa, 40th, Nebraska, 34th, Wyoming, 1st, and Montana, 7th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)

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