Disclaimer: All rates and figures on this page are estimates for general informational purposes only and are not financial, tax, or legal advice. Sales tax rates change and vary by city, county, and the type of item purchased. Verify current rates with the South Dakota Department of Revenue before relying on these figures, and consult a qualified tax professional for specific guidance.
Calculate sales tax on any purchase in South Dakota. The state sales tax rate is 4.2%, and when combined with the average local rate of 1.91%, the total average in South Dakota comes to 6.11%. Actual rates vary by city and county.
Sales Tax Is How South Dakota Pays Its Bills
With no state income tax on wages, South Dakota leans on sales tax revenue more than most states — worth remembering when you compare its 6.11% combined rate with states that tax both paychecks and purchases.
At 6.11% combined (state plus average local), South Dakota's sales tax ranks 37th-highest nationally — below the national median of 7%.
The 4.2% state rate does most of the work in South Dakota, with local jurisdictions adding an average of 1.91%.
Combined state-plus-local averages nearby: Iowa (6.94%); Minnesota (8.135%); Montana (no sales tax); Nebraska (6.98%); North Dakota (7.09%). Montana charges no sales tax at all.
South Dakota Sales Tax Rates
- State Rate
- 4.2%
- Avg Local Rate
- 1.91%
- Combined Average
- 6.11%
Quick Reference
South Dakota has no income tax and is popular for trust formation.
State income tax: None
South Dakota Sales Tax Table
Quick reference for common purchase amounts at the 6.11% combined average rate:
| Purchase Price | Sales Tax | Total |
|---|---|---|
| $10 | $0.61 | $10.61 |
| $25 | $1.53 | $26.53 |
| $50 | $3.06 | $53.05 |
| $100 | $6.11 | $106.11 |
| $250 | $15.28 | $265.27 |
| $500 | $30.55 | $530.55 |
| $1,000 | $61.10 | $1061.10 |
| $2,500 | $152.75 | $2652.75 |
| $5,000 | $305.50 | $5305.50 |
Shopping in South Dakota: What Gets Taxed
Sales tax in South Dakota is collected at the point of sale on most tangible goods and some services. The state portion of 4.2% is uniform statewide, while local jurisdictions may add their own rates, averaging 1.91% across the state. Certain items like groceries and prescription medications may be exempt or taxed at reduced rates.
When budgeting in South Dakota, remember that sales tax affects your purchasing power. With a median home value of $257,200 and a property tax rate of 1.08%, understanding all taxes helps you make informed financial decisions.
What Is and Is Not Taxed in South Dakota
Groceries are not exempt in South Dakota: unprepared food is taxed at the full 4.2% state rate — South Dakota taxes groceries at the full state rate.
Prescription medicines are exempt in South Dakota, as they are in every state that levies a sales tax; over-the-counter drugs and most medical supplies are treated separately and are frequently taxable.
Out-of-state sellers must register and collect South Dakota tax once they cross the state's economic nexus threshold, a rule that follows from the 2018 Supreme Court decision in South Dakota v. Wayfair. Below that threshold, the buyer technically owes use tax instead.