Airbnb reaches tax agreement with South Dakota, will begin collecting taxes Sept. 1

Beginning Sept. 1, Airbnb will begin collecting and remitting state and municipal taxes on all eligible bookings in South Dakota. 

The appropriate sales and tourism taxes will be charged when booking through Airbnb. Airbnb will then remit the taxes collected to the State of South Dakota. By collecting and remitting the taxes, Airbnb ensures a streamlined process for its host community.

South Dakota has more than 600 Airbnb hosts, whose typical annual host income is $4,400. To date, there have been more than 160 million guest arrivals at Airbnb listings around the globe, including 26,000 in South Dakota in the last year.

With this new agreement, South Dakota joins a list of more than 310 jurisdictions globally where Airbnb has collected and remitted more than $300 million in hotel and tourist taxes.

Frequently Asked Questions

Which taxes are included in the agreement?

The following taxes will be collected and remitted by Airbnb:

  • State Sales Tax
  • Municipal Sales Tax
  • Municipal Gross Receipts Tax
  • Tourism Tax


Do hosts still need to obtain a South Dakota sales tax license?

Yes, hosts will need to continue to remit taxes to the DOR on all other rentals.



Do I need to remit taxes on rentals through the Airbnb?

Yes, it is the responsibility of the host to remit the taxes on all Airbnb transactions through August 31, 2017.



How do I report Airbnb transactions on my return?

Hosts should report all Airbnb transactions on the Gross Sales line of their Sales and Use Tax returns.

Beginning September 1, hosts should continue to report their Airbnb transactions on the Gross Sales line, but they will also deduct those transactions in the Non-Taxable sales line.



Still have questions?

Contact the Department of Revenue toll free at (800) 829.9188(800) 829.9188 or by email at bustax@state.sd.us



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