South Dakota state tax: Overview
South Dakota has no income tax. The combined state and local sales tax rate is fairly low when compared to other states. But, sales tax in South Dakota applies to both groceries and clothing.
South Dakota's median property tax rate, is fairly high when compared to other states.
[Data for this state tax guide was gathered from a number of sources including the Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
South Dakota income tax
South Dakota has no income tax.
South Dakota sales tax
The sales tax in South Dakota is 4.20%. The average local sales tax is 1.91%, resulting in a combined sales tax rate of 6.11%, according to the Tax Foundation.
Source: Tax Foundation
- Groceries: Taxable
- Clothing: Taxable
- Motor Vehicles: Exempt from ordinary sales tax, but taxable under a special 4% excise tax
- Prescription Drugs: Taxable
How much is South Dakota property tax?
In South Dakota, the median property tax rate is 1.01% of assessed home value, according to the Tax Handbook.
South Dakota Property Tax Breaks for Retirees
South Dakota offers a property tax homestead exemption for homeowners 70 or older (or surviving spouses), which delays payment of property taxes until the property is sold. Taxes are a lien on the property.
A property tax "freeze" is also available for seniors 65 and older. To qualify for the assessment freeze, you must meet income requirements and have resided in a single-family dwelling for at least 200 days of the previous calendar year.
South Dakota gas tax
| Product | Tax Amount |
|---|---|
| Gasoline | $0.28 per gallon |
| Diesel | $0.28 per gallon |
Source: Sales Tax Handbook
South Dakota taxes on tobacco and alcohol
| Product | Tax Amount |
|---|---|
| Cigarettes | $1.53 per pack |
| Other Tobacco Products | 35% of the wholesale price |
| Medical Marijuana | 0.00% |
| Recreational Marijuana | 19.50% (4.50% cannabis sales tax + 15% state excise tax) |
Source: Sales Tax Handbook
| Product | Tax Amount |
|---|---|
| Beer | $0.27 per gallon |
| Wine | $0.93 per gallon |
| Liquor | $3.93 per gallon |
There is also a 2% wholesale tax on wine and liquor.
Source: Sales Tax Handbook
South Dakota estate and inheritance taxes
South Dakota has no estate or inheritance tax.
Related Content
-
Do You Really Need That Wine Cellar?Home Features Wine cellars are a popular feature in high-end houses. Will installing one in your home increase its value, or would you be better off with a cheaper solution?
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
Ten Cheapest Places To Live in New YorkProperty Tax If you’re planning a move in New York, here are the counties with the lowest property tax bills in the Empire State.
-
‘My Etsy Shop is Dead’: Vendors Cry for Help Amid Trump’s TariffsTariffs Small businesses are struggling to thrive as they absorb the Trump administration’s new wave of tariffs.
-
Three Things Star Wars Fans Taught Me About TaxTax Tips May the force be with you and your taxes this Star Wars Day 2025.
-
Retirees: Don’t Miss These Valuable State Tax Breaks in 2025Retirement Planning Selecting the right state for retirement can significantly impact your financial well-being.
-
10 Cheapest Places To Live in FloridaProperty Tax Make your Florida vacation spot a place for daily living — these counties have the lowest property tax bills in the state.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax RefundsTax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
-
Which Generation Pays the Most Tax in the US?Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
-
Tax Day 2025: Don’t Miss These Freebies, Food Deals and DiscountsTax Day You can score some sweet deals on April 15 in some select restaurants like Burger King, Shake Shack, and more.
