South Dakota does not have an individual income tax. South Dakota does not have a corporate income tax but has a 4.20 percent state sales tax rate and an average combined state and local sales tax rate of 6.11 percent. South Dakota has a 1.00 percent effective property tax rate on owner-occupied housing value. South Dakota does not have an estate tax or inheritance tax. South Dakota’s gas tax is 30 cents per gallon, and its cigarette excise tax is $1.53 per pack of 20 cigarettes.
South Dakota raises tax revenue primarily through general sales taxes (44.8 percent of total state and local tax revenue), property taxes (32.6 percent), and other taxes (21.6 percent). South Dakota collects $5,298 in state and local tax collections per capita, carries $7,978 in state and local debt per capita, and has a 100 percent funded ratio of public pension plans. South Dakota’s tax system ranks 2nd overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and South Dakota is no exception. Use the tabs below to compare South Dakota taxes with other states and to see how South Dakota raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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With many state legislative sessions wrapping up for this year, and a new fiscal year about to begin, it’s a good time to examine some of the 2021 legislative trends—and sports betting taxes are among the more prominent.
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Krispy Kreme may have started the vaccine incentive ball rolling, but many states are putting big money into the effort with vaccine lotteries. Unlike a normal lottery, no one is paying for tickets—but the tax collector still gets paid when someone wins.
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A landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.
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