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 six other states with the same policy: Alaska, Florida, Nevada, Texas, Washington, and Wyoming.

50-State Table of Individual Income Tax Rates

South Dakota's Corporate Income Tax System
South Dakota levies no corporate income or business gross receipts tax. Wyoming is the only other state with no corporate income or business gross receipts tax.
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 1.8%. South Dakota's state and local governments collect $1,398 per person in general sales taxes and $478 per person in excise taxes, for a combined figure of $1,877, which ranks 8th highest nationally. South Dakota's gasoline tax stands at 30 cents per gallon, 22nd highest nationally, while its cigarette tax stands at $1.53, 25th 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 $1216 per person in property taxes in 2012, which ranks 23rd lowest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 8th in South Dakota

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, South Dakota taxpayers have to work until April 8th (4th earliest nationally) to pay their total tax bill.

South Dakota's State and Local Tax Burden Ranks 49th

South Dakota's 2012 tax burden of 7.1% ranks 49th highest in the nation, and is below the national average of 9.9%. South Dakota's taxpayers pay $3,318 per capita in state and local taxes.
South Dakota's State-Local Tax Burden, 1977-Present

State-Local Burden Rankings (full study)

South Dakota's 2016 Business Tax Climate Index Ranks 2nd

South Dakota ranks 2nd on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (1st), individual income taxes (1st), sales taxes (34th), unemployment insurance taxes (40th), and taxes on property (22nd), including residential and commercial property.
State Business Tax Climate Index (full study)

South Dakota Info

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