The South Dakota (SD) state sales tax rate is currently 4.0%. Depending on local municipalities, the total tax rate can be as high as 6%.
Other, local-level tax rates in the state of South Dakota are quite complex compared against local-level tax rates in other states. Cities may impose municipal sales and use tax of up to 2% and a 1% municipal gross receipts tax in addition to sales tax (on certain goods and services). South Dakota sales tax may also be levied at the school/transportation and SPD (special purpose district) levels.
Since South Dakota sales tax has numerous local taxing levels that must be monitored and maintained on a regular basis, compliance is complex and time consuming.
South Dakota sales tax applies to the gross receipts of all retail sales, including the sale, lease or rental of tangible personal property or any product transferred electronically. Many services are also subject to sales tax.
As a Streamlined Sales Tax state, South Dakota encourages out-of-state businesses not required to remit sales tax returns to voluntarily register with the state and collect.
How to Register
Businesses making sales into multiple states may register with the Streamlined Sales Tax Project.
How to File and Pay
Electronic filing through E-Path is preferred but paper sales and use tax forms are available through the Department of Revenue. Tax returns for each reporting period are mailed to businesses filing paper returns; businesses that don’t receive those forms are responsible for contacting the Department of Revenue. Electronic filers do not receive paper returns.
Paper returns must be filed monthly. Other returns may be filed quarterly or semi-annually, depending on the Department of Revenue. Zero returns (no sales tax due) must be filed.
Different filing methods have different due dates:
- Paper sales tax returns and payments are due by the 20th of the month following the reporting period.
- Electronic returns are due the 23rd of the month and electronic payment for the current return is due the 2nd to last working day of the month.
- Returns and payments for all other filers are due by the last day of the month following the reporting period.