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South DakotaSales Tax

A Complete Guide For Businesses

Automate My South DakotaSales Tax Filings

State Rate
4.50%

Local Tax
yes

State Portal
Department of Revenue

Phone
(800) 829-9188

General requirements

South Dakota is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the gross receipts of all retail sales, including the sale, lease, or rental of tangible personal property (TPP) or any product transferred electronically, and the sale of services
  • For wholesalers, items purchased for resale aren’t taxed

You may file returns and pay taxes online.

Rates

The state sales tax rate is 4.5%. Additional local taxes apply, and total tax rates range from 4.5% to 6.5%.

Look up rates by county.

How food is taxed

Grocery items, as well as prepared food and drinks sold in eating establishments, are subject to the full sales tax rate.

Nexus in South Dakota

The following conditions create nexus in South Dakota:

  • Sales representatives
  • Service representatives
  • Delivery trucks
  • Contracts for realty improvements

Additionally, remote sellers without a traditional tax presence in the state meet the requirements to establish nexus if they meet one of the two following criteria:

  • The remote seller's gross revenue of sale of tangible property, any products transferred electronically, or services delivered into South Dakota exceeds $100,000
  • The remote seller has 200 or more separate transactions of tangible property, any products transferred electronically, or services delivered into South Dakota

Filing schedule

Electronic returns are due on the 20th of the month and the electronic payments for those returns are due the on 25th of the month.

Timely filers receive a discount of 1.5% of the tax due, not to exceed $70, each reporting period.

Registering to collect sales tax in South Dakota

Access the South Dakota Tax Application.

Penalties

Penalties: A penalty of 10% of the tax liability is charged when a return is not received within 30 days following the month the return is due. The minimum penalty is $10 and is assessed even if no tax is due.

Interest: 1% interest is charged each month on any past due tax until the tax is paid in full.

See how easy it is to automate your sales tax filings.

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