South Dakota Income Tax
South Dakota has no state income tax. This makes it one of the most attractive states for high earners and retirees. You will still owe federal income tax.
South Dakota Sales Tax
The state sales tax rate in South Dakota is 4.5%. With an average local sales tax of 1.9%, the combined average sales tax rate is 6.4%.
South Dakota Property Tax
The effective property tax rate in South Dakota is 1.08%. With a median home value of $248,700, the median annual property tax bill is $2,658 ($222/month).
Corporate & Business Taxes
The corporate tax rate in South Dakota is 0%. South Dakota does not impose a traditional corporate income tax, making it attractive for businesses.
Other Taxes in South Dakota
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.30/gallon |
| Cigarette Tax | $1.53/pack |
| Estate Tax | No |
| Inheritance Tax | No |
Key Facts
No income tax (personal or corporate). Popular for trusts due to favorable trust laws.
Compare to Other States
See how salaries compare on our average salary in South Dakota page. Thinking about starting a business? Check our LLC guide for South Dakota. See the current minimum wage in South Dakota.
Financial Calculators
Plan your finances in South Dakota with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford