Sales Tax for South Dakota (2026)
South Dakota (SD) Key Facts
State Sales Tax Rate
4.5%
Has State Sales Tax
Yes
Local Taxes May Apply
Yes
Tax Type
Sales and use tax
How This Calculator Works in South Dakota
This calculator estimates the South Dakota sales tax on your purchase amount using the state rate of 4.5%. Enter your purchase price to see the tax amount and total cost.
South Dakota Overview
South Dakota imposes a 4.5% state sales tax with municipal additions up to 2%. With no state income tax, sales tax is a critical revenue source. South Dakota is notable for taxing groceries at the full rate with no exemption, and for its landmark Wayfair Supreme Court case that reshaped online sales tax collection nationwide.
How South Dakota Compares
South Dakota's sales tax rate of 4.5% compares to North Dakota at 5% and Minnesota at 6.875%. Combined with local rates, the effective sales tax burden varies by location.
| State | Top Rate | Notes |
|---|---|---|
| North Dakota | 5% | North Dakota has a sales tax rate of 5%. |
| Minnesota | 6.875% | Minnesota has a sales tax rate of 6.875%. |
| Nebraska | 5.5% | Nebraska has a sales tax rate of 5.5%. |
South Dakota's sales tax rate of 4.5% compares to a national average of approximately 5.10%. This is below the national average.
Tips for South Dakota Residents
- 1South Dakota's 4.5% state rate combines with local municipal taxes up to 2%, bringing combined rates to 6.5% in Sioux Falls.
- 2South Dakota taxes groceries at the full combined rate — it's one of the few states with no food exemption.
- 3South Dakota has no state income tax, making sales tax one of the primary revenue sources.
- 4South Dakota does not hold sales tax holidays.
- 5South Dakota was the plaintiff in the landmark Wayfair Supreme Court case that allowed states to require remote sellers to collect sales tax.