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 2022 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. 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?

Lunch Links: Justice Department Charges Those Defrauding Americans of $300M in IRS Phone Scams; Christie Criticizes Lt. Governor on Transportation Revenue Stance; More TV Series Move to Hollywood for Tax Benefits

October 28, 2016

2017 State Business Tax Climate Index Released Today!

September 28, 2016

Lunch Links: South Dakota Internet Tax Court Filings; Time for Nebraska Tax Reform; Sales Tax Holidays Coming Up

July 26, 2016

Lunch Links: Puerto Rico Moves Toward Default, South Dakota Internet Sales Tax Lawsuits, Ralph Lauren Outfits Taxable

May 2, 2016

South Dakota Contemplates Annual Gas Tax Increases

January 22, 2015

Taxplainer: The State and Local Tax Impact of the Keystone Pipeline

January 7, 2015

Fiscal Times Features Best and Worst States for Taxes

January 29, 2014

South Dakota’s State and Local Tax Burden

October 23, 2012

States Without Income Taxes Rely on Varying Forms of Revenue

April 26, 2012

Sales Tax Increase to Appear on South Dakota Ballot

November 29, 2011

A Sales Tax Word of Warning in Hawaii, New Mexico, South Dakota, and Wyoming

September 30, 2011

South Dakota Governor Praises Tax Foundation Ranking, Seeks More Control Over Tax Credits

January 31, 2011

Five States Have Already Arrived at Their Tax Freedom Day

March 30, 2010

ALEC Releases 2009 Rich States, Poor States

March 18, 2009

State Budgets: South Dakota Draws Down Reserves, Cuts Spending Increase

December 27, 2008

State Insurance Tax Discrimination Case Won’t Be Reheard

May 15, 2008

Tax Foundation Urges a Stop to South Dakota’s Discriminatory Insurance Taxes

April 16, 2008

Urging a Stop to South Dakota’s Discriminatory Insurance Taxes — Metropolitan Life Ins. Co. v. Kinsman

April 15, 2008