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Individuals

Sales & Use Tax

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Information for Individuals

Sales tax applies to the gross sales or transactions including selling, renting, or leasing products or services (including products delivered electronically) into South Dakota. Use tax applies when sales tax has not been paid on products and services (including products delivered electronically) that are used or consumed in South Dakota.

See Sales Tax Guide


Quick Navigation

What is South Dakota's Sales Tax Rate?
What Rates may Municipalities Impose?
Remote Sellers and Marketplace Providers
Are Your Online Purchases Subject to Use Tax?

 


What is South Dakota's Sales Tax Rate?

The South Dakota sales tax and use tax rates are 4.2%.

 

What Rates may Municipalities Impose?

South Dakota municipalities may impose a municipal sales tax, use tax, and gross receipts tax. The South Dakota Department of Revenue administers these taxes. Municipalities may impose a general municipal sales tax rate of up to 2%. They may also impose a 1% municipal gross receipts tax (MGRT) that is in addition to the municipal sales tax. The municipal gross receipts tax can be imposed on alcoholic beverages, eating establishments, lodging accommodations, admissions to places of amusement, athletic, and cultural events. The Department of Revenue administers both of these taxes. Find more information regarding the tax rates for municipalities in South Dakota by following the link below.

SEE Municipal Tax GUIDE

 

Remote Sellers and Marketplace Providers

Remote sellers and marketplace providers who meet certain revenue thresholds must obtain a South Dakota sales tax license and pay applicable sales tax. To see how this impacts a business, visit the business section Sales & Use Tax page.

 

How Does This Impact Me as a Consumer?

Gross sales are transactions including selling, renting or leasing products or services (including products delivered electronically) into South Dakota. Learn more about how tax applies to remote sellers and marketplace providers in our Remote Seller Bulletin (PDF) or Marketplace Tax Fact (PDF).

 

Remote Sellers

A remote seller is a business without a physical presence in South Dakota that meets one or both of the following criteria in the previous or current calendar year:

  • Gross sales into South Dakota exceeding $100,000

 

Marketplace Providers

Marketplace provider must collect and pay sales tax on all sales it facilitates into South Dakota if the marketplace provider:

  • Is a remote seller that exceeds $100,000 in gross sales or 200 or more separate transactions into South Dakota in the previous or current calendar year; or
  • Facilitates the sales of at least one marketplace seller that exceeds $100,000 in gross sales or 200 or more separate transactions into South Dakota in the previous or current calendar year; or
  • Facilitates the sales of two or more marketplace sellers that, when the sales are combined, exceeds
  • $100,000 in gross sales or 200 or more separate transactions into South Dakota in the previous or current calendar year.

See LAWS & REGULATIONS

 

Are Your Online Purchases Subject to Use Tax?

State and municipal taxes may be due on purchases made online. Check your order information when purchasing items online. If the sales tax is not listed, you owe use tax. Get more information on our Tax Fact on Use Tax (PDF). Use Tax is due if:

Use Tax Example

  • Sales tax was not paid when purchasing the items.
  • Sales tax paid to another state was lower than what would have been paid in South Dakota, use tax is owed on the difference.

Individual Use Tax REturn

 

Sales & Use Tax Frequently Asked Questions

See what others are asking regarding taxation on sales and use tax in South Dakota for individuals.

No, sales tax is collected by the seller, however there are some out-of-state retailers who are not licensed to collect South Dakota state and local taxes. In those instances, the consumer is responsible for remitting use tax.

All business with a physical presence in South Dakota are required to collect and remit state and local taxes.

Contractors are responsible for paying contractor’s excise tax on the entire value of the materials, including the value of the materials purchased by the project owner. If a contractor is unable to obtain the amount paid for the materials, they will calculate the fair-market value.

Contractors pay sales tax at the time of purchase on the materials they will use in a construction project. Some contractors will combine these expenses into one line on an invoice and others will break them out. Either way is allowed.

In addition, contractor’s owe a 2% excise tax on the payments they receive for reality improvement projects. In order to recover the tax they are allowed to pass this expense on to the customer and mark up the bill by 2.041%.

If you are not charged sales tax on your purchases, use tax is due. You can calculate the amount owed and pay online by using our online use tax payment feature.

Some businesses may not be required to collect South Dakota sales tax if they do not meet the minimum sales or transaction thresholds.

South Dakota law also requires any business without a physical presence in South Dakota to obtain a South Dakota sales tax license and pay applicable sales tax if the business meets one or both of the following criteria in the previous or current calendar year:

  • The business has gross sales into South Dakota exceeding $100,000; or
  • The business has 200 or more separate transactions into South Dakota.
  • Gross sales or transactions include the sale of tangible personal property, any products

Please note: these minimum thresholds do not apply to any business with a physical presence in South Dakota.

If you suspect that a remote seller is currently not licensed and should be, you can anonymously report tax fraud to the South Dakota Department of Revenue.

You can verify your applicable sales tax rates using the Sales Tax Rate Lookup by entering your address.

If you suspect that a business is not licensed and should be or that you were not charged the correct sales tax rate, please contact us toll free at 1(800) 829-9188. You may also contact us by email, through our live chat feature, or report it anonymously online.

Sales & Use Tax Laws & Regulations

Laws, regulations and information for Sales & Use tax, as administered by the South Dakota Department of Revenue.

Sales & Use Tax For Businesses

Find laws, regulations and general information on South Dakota sales and use tax as it relates to businesses.