South Dakota Sales Tax Calculator

South Dakota’s 4.2% state rate and the layers on top

South Dakota’s state sales and use tax is 4.2%, and most cities add a municipal sales tax of 1% to 2%. The average combined rate is 6.11%. The municipal tax applies only when you receive the product or service inside a city that imposes it, so a purchase delivered to a farm outside town carries only the state rate. The 4.2% rate itself is temporary: lawmakers cut it from 4.5% in 2023, and the Wyoming Legislature’s 2024 comparison notes the reduced rate runs from July 1, 2023 to June 30, 2027.

Two more taxes apply to some purchases, which is how the top rate reaches 8.7%. The Municipal Gross Receipts Tax (MGRT) is up to 1% and is charged on alcohol, restaurant meals, lodging and admissions, on top of the municipal sales tax. The state tourism tax is 1.5% on lodging, campgrounds, car rentals, recreational services and visitor attractions.

Groceries are taxed in full; services usually are too

South Dakota is one of the few states that taxes groceries at the full rate. A Wyoming Legislature comparison of neighbouring states puts it alongside Idaho as states that include food in the sales tax base at the full rate. The Department of Revenue’s guide exempts food bought with SNAP benefits.

In a city with the 2% maximum municipal tax, a $200 grocery trip carries $12.40 of tax. A Wyoming shopper pays nothing on the same basket, because Wyoming exempts groceries.

South Dakota also starts from the position that services are taxable. The Department of Revenue’s guide says sales tax applies to all retail sales “and the sale of services” unless a specific exemption applies. The exempt services it lists include health, educational, social, agricultural and forestry services, financial services of banks, trucking, travel agents and construction (which pays a separate 2% contractor’s excise tax instead). Personal care services such as haircuts and massages are taxable, and are taxed where the service is performed.

Worked example: a night in a Black Hills hotel

Hotel stays carry the most layers of tax in South Dakota. In a city with the full 2% municipal tax, a room is taxed at the 4.2% state rate, 2% municipal tax, 1% MGRT and 1.5% tourism tax, for 8.7% in total.

On a $150 room, that is $13.05 a night, or $52.20 over four nights. Tourism tax on some visitor-intensive businesses only applies from June to September. Tourism tax on lodging and campgrounds applies all year.

Vehicles pay a 4% excise tax instead

Cars, trucks and vans are not charged sales tax in South Dakota. Instead, you pay a 4% motor vehicle excise tax on the purchase price when you title the vehicle. Interest and penalties run from the purchase date, not from the day you apply for the title, so delaying the paperwork costs money.

For a $35,000 pickup, the excise tax is $1,400. At the average sales tax rate it would have been $2,138.50. Rentals of cars for less than 28 days are different. They pay a 4.2% motor vehicle gross receipts tax plus the tourism tax.

South Dakota compared with its neighbours

South Dakota’s 4.2% state rate is low, but its tax base is broad. Groceries and most services are taxed. A Wyoming Legislature comparison of the region lists North Dakota, Nebraska and Wyoming as exempting food, while South Dakota and Idaho tax it at the full rate. Montana has no general sales tax at all.

For people living near a border, this means a lower state rate does not always mean a smaller bill. The difference shows up most on groceries and services, where South Dakota taxes what its neighbours often don’t.

Use tax and the rate lookup

You owe use tax if you bring a product or service into South Dakota without paying South Dakota tax on it. You also owe the difference if another state’s tax was lower than South Dakota’s. Use tax is charged at the same state and municipal rates. It applies to the full price, including delivery charges, and the municipal rate is the one where you receive the item. You get credit for tax paid to another state if you keep the receipt.

Example: a $1,500 piece of farm equipment bought out of state with no tax, and delivered to a city charging 2% municipal tax, owes $93.00 of use tax. The Department of Revenue’s online Sales Tax Rate Lookup gives the municipal rate for any address, and its Municipal Tax Guide lists every city’s sales, use and gross receipts taxes. City rate changes take effect on January 1 or July 1.