Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

South Dakota

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The Bottom Line
Map of South Dakota

Most Tax-Friendly

Sure, it’s cold in the winter. But low taxes will offset some of the cost of staying warm. South Dakota has no income tax, and combined state and local sales taxes are below average for the U.S. The Mount Rushmore State is one of Kiplinger's top ten most tax-friendly states

Sales Tax

4% state levy. Localities can add as much as 2.75%, and the average combined rate is 5.84%, according to the Tax Foundation. Many services are taxed, as is food.

Income Tax Range

There's no state income tax.

See Kiplinger.com’s Retiree Tax Map to learn how South Dakota taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.30 per gallon.
Diesel: $0.30 per gallon.

Property Taxes

Median property tax on South Dakota's median home value of $138,400 is $1,828.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in South Dakota.

Vehicle Taxes

4% excise tax is due when vehicle is titled.

Sin Taxes

Cigarettes: $1.53 per pack
Other tobacco products: 35% of the wholesale price

Beer and other malt beverages: $0.27 per gallon
Wine: $1.21 per gallonrice
Liquor: $4.66 per gallon

Travel Taxes

Hotel: A 1.5% tourism tax is levied on lodging. Cities can apply an additional 1% tax on lodging, drinks, meals, and entertainment. Sales tax is also due. But that's still only 6.5% in Sioux Falls.

Rental cars: 4.5% motor vehicle excise tax is due as well as the 1.5% tourism tax.

Taxes On Wireless Service

13.1%

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

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