South Dakota state seal

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.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your South Dakota sales tax rate:

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

Business activities that establish a tax presence in South Dakota include:

  • Having sales or service representatives in the state
  • Delivering goods in the state in business owned vehicles
  • Contracting for realty improvements in South Dakota

Economic nexus in South Dakota:

  • According to state law, out-of-state sellers whose sales into South Dakota exceed $100,000 gross revenue or 200 separate transactions in the previous or current calendar year must register with the state, collect sales tax on sales to South Dakota, and remit that sales tax to the state.
  • Effective date: The South Dakota Department of Revenue is waiting for an injunction to be lifted before this policy can be enforced.

Want more information on nexus in South Dakota? Read this guide or this page for remote sellers.

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.

We try our best to keep these guides up-to-date. If any of this information is no longer accurate, or if you'd like us to add something new, please email corrections and suggestions to support@lumatax.com. We love hearing feedback!