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Individuals

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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 vendors, though the taxes are reflected in tobacco retail prices.

 

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. 

Certified Tobacco Brands

 

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.

A consumer who purchases cigarettes or tobacco products online, over the phone or by mail, is required to pay the same tax he or she would have paid if he or she had purchased the cigarettes or tobacco products from a South Dakota retailer, plus penalty and interest on unpaid tax liability. Any cigarettes or tobacco products on which the tax has not been paid are contraband and subject to seizure. Learn more about South Dakota RYO Cigarette Manufacturer Requirements (PDF).

 

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 4.5% 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.