What is the sales tax rate in South Dakota?

The South Dakota statewide sales tax rate is 4.200%. This is a temporary rate effective from July 1, 2023 through June 30, 2027. It will return to 4.5% on July 1, 2027. Local municipalities can add up to 2%, making combined rates range from 4.2% to 6.2%.

Why is South Dakota's sales tax rate 4.2%?

In 2023, the South Dakota Legislature temporarily reduced the statewide sales tax from 4.5% to 4.200% for a four-year period. This temporary reduction is in effect until June 30, 2027, after which the rate will return to 4.5%.

Does South Dakota have local sales tax?

Yes, South Dakota municipalities can impose local sales taxes of up to 2% on top of the 4.200% state rate. Most major cities, including Sioux Falls and Rapid City, impose a 2% local tax for a combined rate of 6.2%.

Are groceries taxed in South Dakota?

Yes, groceries and food products are subject to the full sales tax in South Dakota. South Dakota is one of only two states that apply the full state sales tax rate to groceries, though food purchased with SNAP benefits is exempt.

Is clothing taxed in South Dakota?

Yes, all clothing and footwear purchases in South Dakota are subject to the full sales tax. Unlike some states that exempt clothing or have special thresholds, South Dakota taxes all apparel at the standard rate.

Do I pay sales tax on used cars in South Dakota?

Yes, South Dakota charges 4.200% state sales tax (plus any local tax) on motor vehicle purchases, whether new or used. The tax is calculated on the purchase price and must be paid when you register the vehicle.

When did South Dakota last change its sales tax rate?

South Dakota most recently changed its rate on July 1, 2023, when it was temporarily reduced from 4.5% to 4.200%. Before that, the rate was increased from 4% to 4.5% on June 1, 2016. Prior to 2016, the 4% rate had been in place since the mid-1900s.

Do I pay SD sales tax on online purchases?

Yes, South Dakota requires sales tax on online purchases delivered to South Dakota addresses. South Dakota v. Wayfair (2018) established that out-of-state sellers with over $100,000 in sales to South Dakota must collect the 4.200% state tax plus applicable local taxes.

Sales Tax Calculator

South Dakota Sales Tax
Calculator

Calculate South Dakota sales tax instantly for any city. Enter any amount to see the exact tax and total.

State Rate (Temporary)

4.200%

Select City

Amount before tax

About South Dakota Sales Tax

State rate: 4.200%

Local rate in Minnehaha County: 2.000%

Combined rate in Sioux Falls: 6.200%

State Rate

4.200%

Local Tax

Up to 2%

Max Combined

6.200%

Lawrence County

6.200%

Standard Rate

13,803

City	County	Standard Rate	Special District	Population
Sioux Falls	Minnehaha	6.200%	Standard Rate	209,289
Rapid City	Pennington	6.200%	Standard Rate	79,894
Aberdeen	Brown	6.200%	Standard Rate	27,919
Brookings	Brookings	6.200%	Standard Rate	24,555
Watertown	Codington	6.200%	Standard Rate	23,492
Yankton	Yankton	6.200%	Standard Rate	15,670
Mitchell	Davison	6.200%	Standard Rate	15,621
Huron	Beadle	6.200%	Standard Rate	14,515
Box Elder	Pennington	6.200%	Standard Rate	13,887
Spearfish	Lawrence	6.200%	Standard Rate	13,803
Pierre	Hughes	6.200%	Standard Rate	13,788
Vermillion	Clay	6.200%	Standard Rate	11,877
Brandon	Minnehaha	6.200%	Standard Rate	10,837
Harrisburg	Lincoln	6.200%	Standard Rate	10,203
Tea	Lincoln	6.200%	Standard Rate	7,699
Sturgis	Meade	6.200%	Standard Rate	7,014
Madison	Lake	6.200%	Standard Rate	6,086
Belle Fourche	Butte	6.200%	Standard Rate	5,855
Dell Rapids	Minnehaha	6.200%	Standard Rate	3,825
Hot Springs	Fall River	6.200%	Standard Rate	3,608
Hartford	Minnehaha	6.200%	Standard Rate	3,600
Milbank	Grant	6.200%	Standard Rate	3,545
Mobridge	Walworth	6.200%	Standard Rate	3,219
North Sioux City	Union	6.200%	Standard Rate	3,059
Lead	Lawrence	6.200%	Standard Rate	3,038
Summerset	Meade	6.200%	Standard Rate	3,013
Canton	Lincoln	6.200%	Standard Rate	2,974
Winner	Tripp	6.200%	Standard Rate	2,962
Lennox	Lincoln	6.200%	Standard Rate	2,539
Chamberlain	Brule	6.200%	Standard Rate	2,453

Note: Most South Dakota cities, including Sioux Falls and Rapid City, charge a combined rate of 6.2% (4.2% state + 2% local). The state rate will increase to 4.5% on July 1, 2027.

How to Calculate Sales Tax in South Dakota

Sales Tax Calculation

South Dakota

Example: Television Purchase in Sioux Falls

Determine the purchase price

Purchase price (before tax) $500.00

Multiply by the tax rate

$500.00 × 6.20% (0.062)

Sales tax $31.00

Add to the original price

$500.00 + $31.00

TOTAL AMOUNT DUE $531.00

Thank you for your purchase

Reverse Calculation

Know the total? Divide by 1.062 to find the pre-tax price in Sioux Falls. Example: $106.20 ÷ 1.062 = $100.00

What's Taxed?

Taxable: Almost everything, including groceries and clothing

Limited Exemptions: Prescription drugs, farm equipment

Special South Dakota Sales Tax Rules

Temporary Rate Reduction

South Dakota's current 4.2% state rate is temporary. The rate was reduced from 4.5% on July 1, 2023, and will remain at 4.2% through June 30, 2027, after which it returns to 4.5%.

Important: If you're making long-term tax planning decisions, remember that the state rate will increase by 0.3% (from 4.2% to 4.5%) on July 1, 2027.

Timeline

Before June 1, 2016: 4.0%
June 1, 2016: Increased to 4.5%
July 1, 2023: Reduced to 4.2% (temporary)
July 1, 2027: Returns to 4.5%

Broad Tax Base

South Dakota has one of the broadest sales tax bases in the nation

✕
Groceries ARE Taxed: South Dakota is one of only 2 states that tax groceries at the full rate (SNAP purchases exempt)
✕
Clothing IS Taxed: All clothing and footwear subject to full tax
•
Prescription Drugs: Exempt from sales tax
•
Farm Equipment: Agricultural machinery exempt
•
Government Purchases: Sales to state agencies and schools exempt

How South Dakota Compares to Neighboring States

Here's how South Dakota's sales tax stacks up against nearby states

4.200%

North Dakota

5.00%

+ up to 3.5%
local tax

Nebraska

5.50%

+ up to 2%
local tax

South Dakota

4.200%

+ up to 2% local tax
Temporary until 2027

#46 of 50 states

Minnesota

6.875%

+ up to 2%
local tax

Iowa

6.00%

+ up to 1%
local tax

South Dakota has the lowest base rate among its neighbors, but remember the 4.2% rate is temporary and will increase to 4.5% in 2027.

Got Questions?

Frequently Asked Questions

South Dakota Sales Tax Rate History

South Dakota's sales tax rate was remarkably stable for decades, then saw changes in recent years:

Effective Date	Rate	Change	Notes
July 1, 2027	4.500%	▲ +0.300%	Scheduled return to 4.5% (future)
July 1, 2023	4.200%	▼ -0.300%	Temporary reduction (4-year period)
June 1, 2016	4.500%	▲ +0.500%	House Bill 1182 - first increase since mid-1900s
Mid-1900s to 2015	4.000%	—	Stable for over 50 years
1933	N/A	—	Sales tax first introduced in South Dakota

Note: South Dakota's 4% rate remained unchanged for over 50 years (from the mid-1900s until 2016), making it one of the longest-stable sales tax rates in US history. The current 4.2% rate is temporary and will revert to 4.5% on July 1, 2027.

Related Calculators & Resources

Calculator

Reverse Sales Tax

Find original price from total

State Calculator

North Dakota

Calculate ND sales tax

State Calculator

Nebraska

Calculate NE sales tax

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Resources

Official SD Tax Info

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Disclaimer: This calculator provides estimates based on current South Dakota sales tax rates as of January 2025. Tax rates are subject to change by state legislation. For official tax rates and specific guidance on your situation, please consult the South Dakota Department of Revenue or a qualified tax professional.

Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.

Sources: South Dakota Department of Revenue, South Dakota Codified Laws (SDCL) Chapter 10-45 (Sales and Use Tax)

Last updated: October 10, 2025