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?


Related Articles

State and Local Sales Tax Rates, 2021

January 6, 2021

Congress Passes $900 Billion Coronavirus Relief Package

December 21, 2020

Details and Analysis of State and Local Aid Under the Bipartisan State and Local Support and Small Business Protection Act of 2020

December 14, 2020

Wireless Tax Burden Remains High Due to Federal Surcharge Increase

November 17, 2020

Election Analysis: Recreational Marijuana Now Legal in Four More States

November 4, 2020

2021 State Business Tax Climate Index

October 21, 2020

Top Rates in Each State Under Joe Biden’s Tax Plan

October 20, 2020

State and Local Tax Ballot Measures to Watch on Election Day 2020

October 5, 2020

Voters in Four States to Vote on Recreational Marijuana

September 29, 2020

New Census Data Shows States Beat Revenue Expectations in FY 2020

September 18, 2020

April 2nd Evening State Tax Update

April 2, 2020

A Visual Guide to Unemployment Benefit Claims

April 2, 2020

Facts and Figures 2020: How Does Your State Compare?

February 13, 2020

Tax Trends at the Dawn of 2020

January 6, 2020

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

Results of 2018 State and Local Tax Ballot Initiatives

November 6, 2018

South Dakota Voters Will Decide Initiated Measure 25 on November 6th

October 29, 2018

Top State Tax Ballot Initiatives to Watch in 2018

October 22, 2018

2019 State Business Tax Climate Index

September 26, 2018

A Crossroads on Online Sales Taxes: South Dakota v. Wayfair

November 2, 2017