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Taxes In South Dakota

South Dakota Tax Rates, Collections, and Burdens

How does South Dakota’s tax code compare? South Dakota does not have an individual income tax. South Dakota also does not have a corporate income tax. South Dakota has a 4.50 percent state sales tax rate, a max local sales tax rate of 4.50 percent, and an average combined state and local sales tax rate of 6.40 percent. South Dakota’s tax system ranks 2nd overall on our 2023 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and South Dakota is no exception. The first step towards understanding South Dakota’s tax code is knowing the basics. How does South Dakota collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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Tax Data by State

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
Does Not Have an Individual Income TaxSee Full Study
State Local Individual Income Tax Collections per Capita
$0Rank:
State and Local Tax Burden
9.1%Rank: 14See Full Study

Business Taxes

Top Corporate Income Tax Rate
Does Not Have Top Corporate Income Tax RateSee Full Study
State Business Tax Climate Index Ranking
2See Full Study

Sales Taxes

State Sales Tax Rate
4.50%Rank: 36See Full Study
Average Local Sales Tax Rate
1.90%See Full Study
Combined State and Average Local Sales Tax Rate
6.40%Rank: 32See Full Study
State and Local General Sales Tax Collections per Capita
$1788Rank: 5
State Gasoline Tax Rate (cents per gallon)
30¢Rank: 29
State Cigarette Tax Rate (dollars per 20-pack)
$1.53Rank: 29

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.17%Rank: 17
State and Local Property Tax Collections Per Capita
$1606Rank: 26

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