Free South Dakota Sales Tax Calculator

South Dakota Sales Tax Calculator

Select or Search a Zip Code:

Select or Search a Tax Region:

Enter Sale Amount (USD):

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South Dakota Tax Rates

Tax Type	Description	Rate
State Sales Tax and Use Tax	Applies to all sales or purchases of taxable products and services.	4.2%
Municipal Sales and Use Tax	Applies to sales of products and services in municipalities that impose a sales tax.	1-2%
Municipal Gross Receipts Tax (MGRT)	Imposed on alcoholic beverages, eating establishments, lodging, and amusement admissions.	1%
Contractor’s Excise Tax	Applied to gross receipts of contractors engaged in construction or realty improvement projects.	2%
Motor Vehicle Excise Tax	Applies to the purchase of most motor vehicles.	4%
Motor Vehicle Gross Receipts Tax	Applies to short-term rentals of motorcycles, cars, and certain trailers.	4.2%
Tourism Tax	Applies to lodging and amusement services to promote tourism in South Dakota.	1.5%
Ag Excise Tax	Applies to farm machinery and equipment used exclusively for agriculture.	4.2%
Prepaid Wireless 911 Emergency Surcharge	Applied to gross receipts from sales of prepaid wireless services.	2%
911 Emergency Surcharge	Applied per user line per month by telecom and wireless providers.	$2.00
Wireless Gross Receipts Tax	Applies to gross receipts on retail sales of wireless communication services.	4%
Amusement Excise Tax	Applies to gross receipts from mechanical or electronic amusement devices.	4.2%
Sioux Falls Lodging Tax	Applies to receipts from lodging establishments in Sioux Falls.	1%

Data Retrieved From: https://dor.sd.gov/

How to Use the South Dakota Sales Tax Calculator

Using the South Dakota Sales Tax Calculator is simple and intuitive. Follow these step-by-step instructions to calculate sales tax for any transaction quickly:

Step 1: Choose a Calculation Method

Select how you want to calculate sales tax:

By ZIP Code: Ideal if you know the ZIP code of the location.
By Tax Region: Use this if you’re more familiar with the region name (e.g., Sioux Falls, Rapid City).

Step 2: Enter the Transaction Amount

Input the total amount of your transaction before tax in the designated field.
Ensure the value is accurate to calculate the correct tax.

Step 3: Select the ZIP Code or Tax Region

Searchable Dropdown:
- Start typing the ZIP code or region name in the dropdown.
- Select the correct option from the list.
The calculator will automatically apply the appropriate combined tax rate, which includes:
- State Tax Rate
- County Tax Rate
- City Tax Rate
- Special Jurisdiction Tax Rate (if applicable).

Step 4: View the Calculated Results

The calculator will display:

Total sales tax amount for the entered transaction.
The detailed breakdown of the tax rate (state, county, city, special jurisdiction).

Step 5: Use the Results

Review the results to:
- Add the sales tax to your transaction total.
- Verify the accuracy of sales tax charges for compliance.
If needed, adjust the transaction amount or region and recalculate.

Overview of South Dakota Sales Tax

South Dakota’s sales tax system is straightforward but includes layers of taxation depending on the location and nature of the transaction. Here’s a comprehensive breakdown:

Statewide Sales Tax Rate

The state sales tax rate in South Dakota is 4.2%, applied uniformly across all taxable goods and services.
This state tax provides a foundation for public services such as infrastructure, education, and public safety.

Additional Taxes by City, County, and Special Jurisdictions

City and County Taxes: Many municipalities and counties add their own local sales tax rates, which vary depending on the region. For instance, major cities like Sioux Falls or Rapid City often have combined rates that exceed the state base rate.
Special Jurisdiction Taxes: Certain areas may impose unique taxes, such as for tourism districts or tribal lands. These are tailored to meet the funding needs of specific communities or projects.
Combined tax rates can reach up to 6.2% or higher in some regions, accounting for these additional layers.

Sales Tax Application

Taxable Items:
- Most goods and services are subject to South Dakota sales tax, including retail items, restaurant meals, and certain service-based transactions.
Exemptions:
- Exemptions may apply to certain categories such as prescription medications, some agricultural products, and goods purchased by non-profits or government entities.
Remote Sales: South Dakota applies sales tax to online and remote sales, as per the landmark Wayfair v. South Dakota ruling, ensuring tax compliance for businesses without a physical presence in the state.

Use of Exemption Certificates

An exemption certificate allows purchasers to avoid paying sales tax when:

The product or service is intended for resale.
The product or service is used for an exempt purpose.
The purchaser is an exempt entity.

Types of Certificates

Single Purchase Certificate: Applies to a single transaction.
Blanket Certificate: Applies to all qualifying future purchases.

Key Details:

Certificates do not expire but should be updated every 3-4 years.
Businesses with “UT” or “ET” permit numbers cannot purchase items for resale.

Penalties for Misuse:

Providing an invalid exemption certificate to evade taxes is a Class I misdemeanor with fines up to 50% of the tax owed, plus the tax itself.

To obtain exemption certificates, visit the South Dakota Department of Revenue or call 1-800-829-9188.

Exempt Entities

Certain entities are exempt from paying sales or use tax on purchases:

Government Entities:
- U.S. federal agencies.
- South Dakota state, county, and municipal governments.
- Municipal or volunteer fire and ambulance departments.
Educational Institutions:
- Public K-12 schools, universities, and technical institutes.
- South Dakota private and religious schools (RS exemption numbers required).
Non-Profit Organizations:
- Relief agencies (RA exemption numbers required).
- Non-profit hospitals.
Indian Tribes.

Note: Employee purchases for personal use, even if reimbursed by an exempt entity, are subject to sales tax unless paid directly by the exempt entity using its funds.

Exempt Products and Services

Certain products and services are not subject to sales or use tax:

Products:
- Food purchased with SNAP benefits.
- Gasoline and dyed diesel fuel for agricultural purposes.
- Bulk water for domestic use.
Services:
- Health and educational services.
- Social services and financial services provided by registered institutions.
- Repairs on inventory items to be resold.

Other Exempt Transactions

Sales for Resale: Businesses purchasing items to sell, rent, or lease to others in the course of business can claim exemptions.
Direct Payment Permits: Qualified businesses can purchase products or services without sales tax and directly remit use tax to the state.

States with Reciprocal Exemptions

South Dakota exempts purchases by government entities from states that provide similar exemptions for South Dakota governments. These states include:

Alaska, Colorado, Delaware, Indiana, Montana, New Hampshire, North Dakota, Ohio, Oregon, West Virginia, Iowa (excluding motels/hotels), and Minnesota (excluding meals and beverages).

How to Claim Exemptions

Provide a completed exemption certificate to the seller at the time of purchase.
For more details, refer to the Exemption Certificate Tax Fact or contact 1-800-829-9188.

How to Calculate South Dakota Sales Tax

Calculating South Dakota sales tax manually requires a clear understanding of the combined tax rate in your location. Follow this step-by-step guide to ensure accuracy:

Step-by-Step Manual Calculation

Determine the Combined Tax Rate
- Identify the state tax rate (4.2%).
- Add any applicable local taxes:
  - City tax rate: Varies by location.
  - County tax rate: May apply in addition to city taxes.
  - Special jurisdiction tax rate: Specific to certain districts.
For example, if you are in Sioux Falls, the combined rate is 6.2% (4.2% state + 2% city).
Calculate the Tax Amount
- Multiply the transaction amount by the combined tax rate.
  - Formula:
    Tax Amount = Transaction Amount × Combined Tax Rate
- Example:
  For a $100 purchase in Sioux Falls:
  $100 × 6.2% = $6.20
Add the Tax to the Transaction Amount
- Add the calculated tax amount to the original transaction amount to get the total cost.
  - Example:
    $100 + $6.20 = $106.20

Benefits of Using the South Dakota Sales Tax Calculator

Manual calculations can be time-consuming and error-prone. The South Dakota Sales Tax Calculator eliminates these challenges by providing:

Accuracy
- The calculator automatically applies the correct combined tax rate for the selected ZIP code or tax region, reducing the risk of miscalculations.
Speed
- Instantly calculate the sales tax amount without needing to look up rates or perform manual computations.
Convenience
- Avoid searching for complex tax tables or memorizing local rates. The searchable dropdown feature ensures you can quickly find the information you need.
Compliance
- Ensure your tax calculations are accurate and compliant with South Dakota’s tax laws, especially for business transactions.

Use Tax for Individuals in South Dakota

This section provides an overview of use tax obligations for individuals in South Dakota. It outlines when use tax applies, how to remit it, and examples of taxable products and services. For specific questions, always consult the South Dakota Department of Revenue or contact their toll-free hotline at 1-800-829-9188.

What is Use Tax?

Use tax is a complementary tax to sales tax and is applied when:

Sales tax was not paid at the time of purchase.
Sales tax paid in another state was lower than South Dakota’s sales tax rate. In such cases, the difference is owed when the product enters or is used in South Dakota.

Key Points:

A credit is provided for taxes already paid to another state, but you must keep receipts or invoices as documentation.
Use tax is calculated on the full purchase price, including delivery fees and other charges.
The applicable municipal sales and use tax rates are based on the location where the product or service is received or consumed.
The purchaser is responsible for reporting and paying the use tax.

How to Pay Use Tax

Submit use tax payments online through the South Dakota Department of Revenue.
To determine the correct rate for a given location, use the sales and use tax rate lookup tool.

Examples of Use Taxable Products and Services

Products:

Books, jewelry, clothing, tools, antiques, and sporting goods.
Digital goods like eBooks, music, and software.
Farm equipment, household goods, and machinery.

Services:

Online subscriptions (games, news, sports).
Computer services such as diagnostics and consulting.
Legal services, tax preparation, and ancestry searches.

When is Use Tax Owed?

Use tax applies when:

Taxable products and services are used or consumed in South Dakota without sales tax being paid.
Products and services, including those transferred electronically, are received in South Dakota.

Applicable Tax Rates:

State Sales and Use Tax: 4.2%.
Municipal Sales and Use Tax: Varies between 1-2% based on the location.
Contractor’s Excise Tax: A 2% tax on the gross receipts of contractors for construction or realty improvement projects.

Contact the South Dakota Department of Revenue

For further assistance, reach out to the Business Tax Division:

Phone: 1-800-829-9188
Email: bustax@state.sd.us
Website: http://dor.sd.gov
Mailing Address: South Dakota Department of Revenue
445 East Capitol Ave
Pierre, SD 57501

South Dakota ZIP Code and Tax Region Data

Understanding the varying sales tax rates across South Dakota’s ZIP codes and tax regions is crucial for accurate tax calculations. Each area’s combined tax rate includes the state sales tax of 4.2%, plus applicable city, county, and special jurisdiction taxes. Below is an overview of key ZIP codes and regions, highlighting examples from major cities and unique tax zones.

Key ZIP Codes and Tax Regions

South Dakota’s tax rates differ by location due to additional municipal and jurisdictional taxes. Here are some notable examples:

Sioux Falls (ZIP Codes: 57101, 57103, 57106, 57110)
- Combined Tax Rate: 6.2%
- Breakdown:
  - State Tax: 4.2%
  - City Tax: 2.0%
- Sioux Falls is South Dakota’s largest city and has one of the highest combined tax rates, making accurate calculations essential for businesses and consumers.
Rapid City (ZIP Codes: 57701, 57702, 57709)
- Combined Tax Rate: 6.2%
- Breakdown:
  - State Tax: 4.2%
  - City Tax: 2.0%
- As a major tourist destination, Rapid City’s sales tax applies to a wide range of goods and services, including hospitality and dining.
Brookings (ZIP Codes: 57006, 57007)
- Combined Tax Rate: 6.2%
- Breakdown:
  - State Tax: 4.2%
  - City Tax: 2.0%
- Brookings, home to South Dakota State University, has a significant consumer base that benefits from precise sales tax information.
Deadwood (ZIP Code: 57732)
- Combined Tax Rate: 6.2%
- Breakdown:
  - State Tax: 4.2%
  - City Tax: 2.0%
- As part of the Deadwood Business Improvement District, the city imposes additional taxes, often affecting tourism-related purchases.

Special Jurisdiction Tax Examples

Some areas in South Dakota include special jurisdiction taxes in addition to state and local rates:

Rosebud Sales Special Jurisdiction (ZIP Codes: 57563, 57566, 57572)
- Combined Tax Rate: 4.2% (with 0.042 special jurisdiction tax replacing city tax).
- Applies to certain tribal lands, ensuring compliance with tribal tax laws.
Standing Rock Special Jurisdiction (ZIP Codes: 57621, 57634, 57639)
- Combined Tax Rate: 4.2% (special jurisdiction replaces city tax).
- Covers purchases made within tribal areas.

Frequently Asked Questions: South Dakota Sales and Use Tax

What is South Dakota's State Sales Tax Rate?

The state sales tax rate in South Dakota is 4.2%. This rate applies to all taxable goods and services sold within the state.

What is the Difference Between Sales Tax and Use Tax?

Sales Tax: Charged at the point of sale when taxable goods or services are purchased in South Dakota.
Use Tax: Applies to items or services purchased without paying South Dakota sales tax, often from out-of-state sellers. If the sales tax paid elsewhere is less than South Dakota’s rate, the difference is owed as use tax.

Are There Additional Municipal Taxes?

Yes, municipalities may impose additional taxes:

Municipal Sales and Use Tax: Ranges from 1-2%.
Municipal Gross Receipts Tax (MGRT): An additional 1% for specific services like lodging, alcoholic beverages, and admissions to cultural events.

What Products and Services are Exempt from Tax?

Exemptions include:

Certain government, tribal, and non-profit entity purchases.
Food purchased with SNAP benefits.
Farm machinery and irrigation equipment used exclusively for agriculture.
Specific medical devices and drugs.

For a complete list, refer to the Exemption Certificate Tax Fact.

What is Required to Claim an Exemption?

A completed exemption certificate must be provided to the seller. Certificates can be for single purchases or blanket applications. Misusing exemption certificates is a Class I misdemeanor with penalties up to 50% of the tax due.

What Are the Tourism and Lodging Taxes?

Tourism Tax: 1.5% on certain lodging, amusement services, and vehicle rentals to promote tourism.
Sioux Falls Lodging Tax: 1% on lodging receipts in Sioux Falls.

What Taxes Apply to Contractors?

Contractor’s Excise Tax: 2% on gross receipts from construction services or realty improvement projects.
Prime contractors must collect and remit this tax.

Are Remote Sellers and Marketplace Providers Required to Collect Tax?

Yes, if they meet the following thresholds:

Over $100,000 in gross sales into South Dakota.
More than 200 separate transactions in the state in a calendar year.

Marketplace providers are responsible for collecting and remitting taxes on behalf of their sellers.

What Records Must Businesses Keep?

Businesses must retain:

Sales and purchase invoices.
Exemption certificates.
Tax returns and supporting documents.
Records of gross receipts and deductions.

Records should be kept for at least three years.

What Are the Penalties for Late Filing or Non-Payment?

Penalty: 10% of the tax due or a minimum of $10.
Interest: 1% per month on unpaid tax.
Severe cases may lead to liens, property seizure, license revocation, or criminal charges.

How Do I File and Pay Taxes in South Dakota?

Use the EPath system for electronic filing and payment.
Paper returns must be filed by the 20th of the month following the reporting period.

How Do Tax Collection Agreements Work in Indian Country?

Tribal tax collection agreements ensure consistency in tax rates across state and tribal jurisdictions. Businesses operating on tribal land must report taxes using the assigned jurisdiction code.

How Can I Verify Sales Tax Rates?

Use the Sales Tax Rate Lookup Tool to find state, municipal, and special jurisdiction rates for specific locations.

What Support is Available for Businesses?

The South Dakota Department of Revenue provides:

Tax seminars and publications.
Online filing assistance via EPath.
Direct support at 1-800-829-9188 or by visiting local offices in cities like Sioux Falls and Rapid City.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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