Individuals
Cigarette & Tobacco
In addition to sales tax, cigarettes and other tobacco products in South Dakota are subject to excise taxes on both South Dakota and Federal levels. Payment of tobacco excise taxes are made by licensed tobacco distributors or wholesalers, though the taxes are reflected in tobacco retail prices.
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Retailer Information
Tobacco Brand Listings
Internet and Mail Order Cigarette and Tobacco Product Sales
Direct Cigar Shipping
Cigarette & Tobacco Frequently Asked Questions
Retailer Information
For more information on selling tobacco products, visit the Cigarette & Tobacco page under the businesses section of the DOR website.
Tobacco Brand Listings
Only certified tobacco brands may be sold in South Dakota. If the certification is approved by the Department of Revenue, the brand will be listed and approved for sale.
Internet and Mail Order Cigarette and Tobacco Product Sales
The shipment or transport of cigarettes or tobacco products to consumers in South Dakota is illegal under South Dakota law SDCL 10-50-99. Persons engaged in the business of selling or distributing cigarettes or tobacco products who ship or transport cigarettes or tobacco products to consumers in South Dakota are subject to injunctions, substantial monetary penalties and surrender of profits. An exception exists for the shipment of cigars in South Dakota. See more information about direct cigar shipping below.
Consumers purchasing cigarettes or tobacco products illegally online, over the phone, or by mail are subject to substantial taxes, interest, and penalties. Additionally, the product is considered to be contraband and is required to be forfeited to the state and destroyed.
Direct Cigar Shipping
Beginning January 1, 2022, any cigar seller located inside or outside the state may ship cigars to South Dakota consumers if they have met the requirements to obtain a cigar shipper license and a sales tax license.
For more information on direct cigar shipping, visit the Cigarette & Tobacco page under the businesses section of the DOR website.
Cigarette & Tobacco Product Resources
Cigarette & Tobacco Frequently Asked Questions
See what others are asking about the latest information and laws on South Dakota excise tobacco taxes.
Cigarette taxes are paid by the distributors when they purchase the stamps that are found on each pack of cigarettes sold in South Dakota. The stamps are required to be placed on each pack of cigarettes prior to the sale to a retailer.
Rate:
- $1.53 per pack of 20 cigarettes
- $1.92 per pack of 25 cigarettes
The Other Tobacco Product Tax (OTP) is paid by a licensed wholesaler or distributor when they receive the products in South Dakota. This tax applies to cigars, snuff, chewing tobacco, and any other tobacco product except for cigarettes.
Rate:
- 35% of the wholesale purchase price
Both cigarettes and other tobacco products are subject to the 4.2% state sales tax rate plus the general municipal sales tax rates when sold at retail.
Of the taxes collected, the first $30 million is deposited into the State General Fund. The next $5 million goes to the Tobacco Prevention & Reduction Trust Fund. Any additional funds are then deposited into the State General Fund.