Permitted
No state individual income tax — 0% on wages and all personal income.
South Dakota Taxes
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South Dakota statewide rule
South Dakota's state sales and use tax rate is 4.2% on retail sales of tangible personal property (SDCL 10-45-2). The codified law also carries a version of 10-45-2 at four and one-half percent (4.5%) marked "Effective July 1, 2027", so the state rate is scheduled to rise back to 4.5% on that date unless the Legislature changes it. Municipalities may add a general municipal sales and use tax of up to 2%, plus a 1% municipal gross receipts tax (MGRT) on alcoholic beverages, eating establishments, lodging, and admissions to amusement, athletic and cultural events. The Department of Revenue administers the municipal taxes; check its Municipal Tax Guide for a town's rate.
§ sdlegislature.gov
Verified Nov 10, 2026Reviewed
“There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and two-tenths percent upon the gross receipts of all sales of tangible personal property”
Read on Nov 11, 2026 from sdlegislature.gov.
Checked once · Nov 11, 2026
Every Taxes rule LawLert has for South Dakota
Each rule below is the full statewide entry, with the official source it rests on and the date it was last checked.
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South Dakota charges 30 cents per gallon in state tax and fees on gasoline and diesel: a fuel excise tax of $.28 per gallon on motor fuel and special fuel (SDCL 10-47B-4.2, in effect since April 1, 2015), plus a petroleum release compensation and tank inspection fee of $20 per 1,000 gallons — 2 cents per gallon — on the same fuel (34A-13-20). Other fuels carry their own excise rates (10-47B-4): aviation gasoline $.06 per gallon, jet fuel $.04, liquid petroleum gas $.20, compressed natural gas $.10 and liquid natural gas $.14 per gallon. These are state charges only.
“The fuel excise tax rate for motor fuel and special fuel is $.28 per gallon.”
Read on Nov 11, 2026 from sdlegislature.gov.
Checked once · Nov 11, 2026
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No sales-tax holiday.
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South Dakota property tax is set and collected locally. In each county the Director of Equalization is the assessor of all real property and must assess it at market ("full and true") value — what it would probably sell for on the open market. Property is then equalized to 85% for tax purposes: a home with a full and true value of $230,000 has a taxable value of $195,500. Each taxing jurisdiction (county, city, school district and others) sets a levy, expressed in dollars per thousand of taxable value, by dividing the part of its budget not funded from other sources by the taxable value in its boundaries; the state Property Tax Reduction Act limits how much a jurisdiction can ask for. Your tax is your taxable value times the combined levies (e.g., $10 per thousand on $200,000 = $2,000). Owner-occupied homes may qualify for a reduced rate on application, and the County Treasurer handles property tax relief programs; appeal your assessment through the county.
“All property is to be assessed at full and true value. Then the property is equalized to 85% for property tax purposes.”
Read on Nov 11, 2026 from dor.sd.gov.
Checked once · Nov 11, 2026
Restricted
South Dakota taxes groceries at the full state sales tax rate of 4.2%: the tax applies to the gross receipts of all retail sales of goods, wares and merchandise "except as otherwise provided" (SDCL 10-45-2), and chapter 10-45 has no general exemption for food. Municipal sales taxes may be added on top. The only food exemptions are purchases made with federal food stamps (SNAP) (SDCL 10-45-14.7) and authorized WIC purchases under the Child Nutrition Act (SDCL 10-45-14.8). Under current law the state rate rises to 4.5% on July 1, 2027 (the version of SDCL 10-45-2 effective that date).
“a tax of four and two-tenths percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the state to consumers or users”
Read on Nov 13, 2026 from sdlegislature.gov.
Checked once · Nov 13, 2026
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