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South Dakota Sales Tax

On this page you will find handy sales and use tax information about South Dakota.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to South Dakota that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

4.200% The state has reduced rates for sales of certain types of items. Sales and deliveries to certain Indian reservations are subject to the Tribal sales, use and excise taxes in lieu of the state sales, use and excise tax. City sales tax may still apply.
Range of Local Rates

0% – 10% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
AFFILIATE NEXUS

7/1/2011
REPORTING REQUIREMENTS

7/1/2011
ECONOMIC NEXUS

11/1/2018 – injunction lifted – see state notice and state webpage
MARKETPLACE NEXUS

3/1/2019
Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

258 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period. EFT remitters: 23rd of the month following the reporting period.
Exemption Information
RESALE CERTIFICATE

South Dakota Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: advertising services, state and local fair admission, prescription drugs, medical devices, certain agricultural products

 

Entity types of exemptions: Indian tribes, United States government agencies, South Dakota governments including state, county and municipal, municipal or volunteer fire or ambulance departments, public schools, including K-12, universities and technical institutes, non-profit hospitals, relief agencies, South Dakota religious and private schools

 

South Dakota Exemption Certificate Forms
State Links
State Tax Web Page

South Dakota Department of Revenue
Rate Look-Up Page

South Dakota Sales Tax Rate Look-Up
Registration Link

Register for South Dakota Sales Tax
History & Fun Facts
HISTORY

The South Dakota retail sales tax was enacted in 1935 and extended to services and professions in 1965. The South Dakota use tax was enacted in 1939.

 

South Dakota amended it sales and use tax laws to conform with the Streamlined Sales and Use Tax Agreement in 2003.
FUN FACTS
  • South Dakota, like its northern sister state, has an impressive groundbreaking United States Supreme Court case which changed the entire landscape of sales tax collection in the United States – South Dakota v. Wayfair, Inc. Maybe you’ve heard of it?

South Dakota Adds Products Delivered Electronically to Definition of Seller

South Dakota has additionally clarified some of the language in the state\’s sales tax statutes, including adding \”any product transferred electronically\” to the list of items that a person defined as a seller could be selling, leasing, or renting in the state.

South Dakota Requires Use Tax from Infrastructure Management Company

In a recent ruling by the South Dakota Supreme Court, an infrastructure management company was found liable for over $75,000 in unpaid use taxes and interest.

South Dakota Releases Updated Fact Sheet for Sales Tax at Special Events

South Dakota has released an updated fact sheet with guidance for Special Event taxation through their website.

South Dakota Temporarily Lowers Sales Tax Rate

South Dakota is lowering its sales and use tax rate for four years under a bill signed into law by the governor. This house bill is reducing the rate from 4.5% to 4.2%. The reduced rate will be effective from July 1, 2023 – June 30, 2027.

South Dakota Drops 200 Transaction Count from its Economic Nexus Threshold

On February 13, 2023, South Dakota Governor Kristi Noem signed Senate Bill 30 into law, which eliminates the 200-transaction threshold from South Dakota’s economic nexus threshold, effective July 1, 2023.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Internet Access Service Charges Exempt in South Dakota Beginning July 1, 2020

Effective July 1, 2020, charges for internet access are no longer subject to South Dakota state and municipal sales tax.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

South Dakota Imposes Marketplace Facilitator Provisions

On September 12, 2018, Gov. Daugaard signed Senate Bill 2, which contains nexus provisions for marketplace providers. Effective March 1, 2019, marketplace providers are required to obtain a sales tax license and collect and remit sales tax on all sales…

South Dakota Court Rules that State’s Economic Nexus Legislation is Unconstitutional

On March 6, 2017, the South Dakota Sixth Judicial Court ruled the state’s economic nexus legislation unconstitutional. The legislation was eventually struck down by the South Dakota Supreme Court for conflicting with Quill Corp. v. North Dakota.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Airbnb to Collect Sales Taxes in South Dakota

Beginning September 1, 2017, Airbnb will collect and remit state and municipal taxes on all eligible bookings in South Dakota. The appropriate taxes will be charged when booking through Airbnb.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.