South Dakota state income tax rates
Updated Mar. 28, 2025
South Dakota is one of only nine states that doesn’t tax individual wage income. It also doesn’t have a corporate income tax.
South Dakota sales tax rate
South Dakota’s sales tax rate is 4.2 percent, and municipalities in the state may also charge their own general sales tax of up to 2 percent. Municipalities may also charge a municipal gross receipts tax of 1 percent on specific items, including alcohol sales, restaurant and bar sales, and lodging, as well as admission to amusement parks, sporting events and cultural events.
The state’s average combined sales tax rate, counting both local and state rates, is 6.11 percent, according to the Tax Foundation.
Other things to know about South Dakota taxes
- Property taxes are levied at the local level by cities, counties, towns, school districts, etc. The effective (average) property tax rate across the state is 1.01 percent, according to the Tax Foundation.
- The state has no inheritance tax or estate tax.
- The gasoline tax is 28 cents per gallon.
- The cigarette tax is $1.53 per pack.