Ahead of the Senate hearing on “Offshore Profit Shifting and the U.S. Tax Code,” I released a report reminding us that contrary to the perception created by these types of political spectacles, corporations pay a...
The facts on South Dakota’s Tax Climate
0%Individual Income Tax
0%Corporate Income Tax
$1142Property TaxCollections Per Capita
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 6%. The average local sales tax rate is an additional 1.82%. South Dakota's state and local governments collect $1262 per person in general sales taxes and $445 per person in excise taxes, for a combined figure of $1707, which ranks 7th highest nationally. South Dakota's gasoline tax stands at 24¢ (23rd lowest nationally), while its cigarette tax stands at $1.53 (22nd 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 $1142 per person in property taxes, which ranks 20th 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 2013, South Dakota taxpayers worked until April 4th (6th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: North Dakota, April 18th (ranked 14th latest nationally); Minnesota, April 23rd (ranked 7th latest nationally); Iowa, April 9th (ranked 17th earliest nationally); Nebraska, April 12th (ranked 23rd earliest nationally); Wyoming, April 16th (ranked 17th latest nationally); and Montana, April 10th (ranked 19th earliest nationally).
South Dakota's State and Local Tax Burden Below National Average
South Dakota's 2010 tax burden of 7.58% ranks 2nd lowest out of 50 states, and is below the national average of 9.9%. South Dakota's taxpayers pay $3035 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 2013 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, 45th, Iowa, 42nd, Nebraska, 31st, Wyoming, 1st, and Montana, 8th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
South Dakota Info
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