South Dakota is the 5th least densely populated, seventeenth largest by area, and fifth smallest by population State of United States of America. It is situated in the Midwestern region of the United States.
Also known as the Mount Rushmore State, the South Dakota State shares its border with
Pierre is the capital of South Dakota, while Sioux Falls, the largest city and Sioux Falls metropolitan area is the largest metropolitan of the state.
From the Black Hills to Mount Rushmore, the state plenty of unspoiled landscapes and natural wonders. Besides, it also offers low-cost living expenses, not-too-crowded cities, inspiring and adventurous lifestyle, spacious surroundings, No income tax, a flourishing economy, numerous Job opportunities, and Booming business.
All these aforementioned perks have forced countless people to settle in this amazing state to start their new life, career, or business. If you are one of them, planning to start, relocate, or expand your business in South Dakota, you should learn to deal with South Dakota Sales Tax.
Businesses and Sellers involved in the gross sales or transactions, including retail sale, lease, or rental of taxable tangible personal property, some services or any product transferred electronically, as well as have Nexus in South Dakota are required to register for Sales tax.
They must collect, manage, and remit it to the South Dakota Department of Revenue while staying in compliance with state laws and avoid penalties and interest.
The sales tax determined on four factors:
So you should check with the South Dakota state government as to which goods and services sold in South Dakota are subject to sales tax.
To calculate Sales Tax in South Dakota, follow the steps below:
As a business owner, you are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the South Dakota State. And to determine your Nexus in South Dakota, you must have any of the following:
Out of State Seller is eligible to register, collect and remit sales tax under South Dakota Law, if:
Once you have determined that your Nexus is with South Dakota, next is to deduce the Sales Tax rate (State+City) applicable to your product, for which you can refer to the table below:
City | State Rate | City Rate | Total Sales Tax |
---|---|---|---|
Aberdeen | 4.50% | 2.00% | 6.50% |
Alcester | 4.50% | 2.00% | 6.50% |
Alexandria | 4.50% | 2.00% | 6.50% |
Arlington | 4.50% | 2.00% | 6.50% |
Armour | 4.50% | 2.00% | 6.50% |
Aurora | 4.50% | 1.00% | 5.50% |
Avon | 4.50% | 2.00% | 6.50% |
Baltic | 4.50% | 2.00% | 6.50% |
Belle Fourche | 4.50% | 2.00% | 6.50% |
Beresford | 4.50% | 2.00% | 6.50% |
Box Elder | 4.50% | 2.00% | 6.50% |
Brandon | 4.50% | 2.00% | 6.50% |
Britton | 4.50% | 2.00% | 6.50% |
Brookings | 4.50% | 2.00% | 6.50% |
Burke | 4.50% | 2.00% | 6.50% |
Canton | 4.50% | 2.00% | 6.50% |
Castlewood | 4.50% | 2.00% | 6.50% |
Centerville | 4.50% | 2.00% | 6.50% |
Chamberlain | 4.50% | 2.00% | 6.50% |
Clark | 4.50% | 2.00% | 6.50% |
Clear Lake | 4.50% | 2.00% | 6.50% |
Colman | 4.50% | 2.00% | 6.50% |
Colton | 4.50% | 2.00% | 6.50% |
Crooks | 4.50% | 2.00% | 6.50% |
Custer | 4.50% | 2.00% | 6.50% |
De Smet | 4.50% | 2.00% | 6.50% |
Deadwood | 4.50% | 2.00% | 6.50% |
Dell Rapids | 4.50% | 2.00% | 6.50% |
Eagle Butte | 4.50% | 2.00% | 6.50% |
Edgemont | 4.50% | 2.00% | 6.50% |
Elk Point | 4.50% | 2.00% | 6.50% |
Elkton | 4.50% | 2.00% | 6.50% |
Estelline | 4.50% | 2.00% | 6.50% |
Eureka | 4.50% | 2.00% | 6.50% |
Faulkton | 4.50% | 2.00% | 6.50% |
Flandreau | 4.50% | 2.00% | 6.50% |
Fort Pierre | 4.50% | 2.00% | 6.50% |
Freeman | 4.50% | 2.00% | 6.50% |
Garretson | 4.50% | 2.00% | 6.50% |
Gettysburg | 4.50% | 2.00% | 6.50% |
Gregory | 4.50% | 2.00% | 6.50% |
Groton | 4.50% | 2.00% | 6.50% |
Harrisburg | 4.50% | 2.00% | 6.50% |
Hartford | 4.50% | 2.00% | 6.50% |
Highmore | 4.50% | 2.00% | 6.50% |
Hill City | 4.50% | 2.00% | 6.50% |
Hot Springs | 4.50% | 2.00% | 6.50% |
Howard | 4.50% | 2.00% | 6.50% |
Huron | 4.50% | 2.00% | 6.50% |
Ipswich | 4.50% | 2.00% | 6.50% |
Kadoka | 4.50% | 2.00% | 6.50% |
Lake Andes | 4.50% | 2.00% | 6.50% |
Lake Norden | 4.50% | 2.00% | 6.50% |
Lead | 4.50% | 2.00% | 6.50% |
Lemmon | 4.50% | 2.00% | 6.50% |
Lennox | 4.50% | 2.00% | 6.50% |
Madison | 4.50% | 2.00% | 6.50% |
Marion | 4.50% | 2.00% | 6.50% |
Martin | 4.50% | 2.00% | 6.50% |
Milbank | 4.50% | 2.00% | 6.50% |
Miller | 4.50% | 2.00% | 6.50% |
Mission | 4.50% | 2.00% | 6.50% |
Mitchell | 4.50% | 2.00% | 6.50% |
Mobridge | 4.50% | 2.00% | 6.50% |
Newell | 4.50% | 2.00% | 6.50% |
North Sioux City | 4.50% | 2.00% | 6.50% |
Onida | 4.50% | 2.00% | 6.50% |
Parker | 4.50% | 2.00% | 6.50% |
Parkston | 4.50% | 2.00% | 6.50% |
Philip | 4.50% | 2.00% | 6.50% |
Piedmont | 4.50% | 2.00% | 6.50% |
Pierre | 4.50% | 2.00% | 6.50% |
Plankinton | 4.50% | 2.00% | 6.50% |
Platte | 4.50% | 2.00% | 6.50% |
Rapid City | 4.50% | 2.00% | 6.50% |
Redfield | 4.50% | 2.00% | 6.50% |
Roslyn | 4.50% | 3.00% | 7.50% |
Saint Francis | 4.50% | 0.00% | 4.50% |
Salem | 4.50% | 2.00% | 6.50% |
Scotland | 4.50% | 2.00% | 6.50% |
Selby | 4.50% | 2.00% | 6.50% |
Sioux Falls | 4.50% | 2.00% | 6.50% |
Sisseton | 4.50% | 2.00% | 6.50% |
Spearfish | 4.50% | 2.00% | 6.50% |
Springfield | 4.50% | 2.00% | 6.50% |
Sturgis | 4.50% | 2.00% | 6.50% |
Summerset | 4.50% | 2.00% | 6.50% |
Tea | 4.50% | 2.00% | 6.50% |
Tyndall | 4.50% | 2.00% | 6.50% |
Vermillion | 4.50% | 2.00% | 6.50% |
Viborg | 4.50% | 2.00% | 6.50% |
Volga | 4.50% | 2.00% | 6.50% |
Wagner | 4.50% | 2.00% | 6.50% |
Wall | 4.50% | 2.00% | 6.50% |
Watertown | 4.50% | 2.00% | 6.50% |
Webster | 4.50% | 2.00% | 6.50% |
Wessington Springs | 4.50% | 2.00% | 6.50% |
Whitewood | 4.50% | 2.00% | 6.50% |
Winner | 4.50% | 2.00% | 6.50% |
Worthing | 4.50% | 2.00% | 6.50% |
Yankton | 4.50% | 2.00% | 6.50% |
As the Sales Tax rate in South Dakota is the same, so it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.
Example # 1:
For instance, you sell a Microwave Oven on your store in Vermillion, South Dakota, having a net cost of $420. The amount of Sales Tax that you have to pay on the Microwave Oven would be:
Manual Method:
Net Price (amount before Tax) of a Microwave Oven: $420
Total Sales Tax rate: 2.00% (Greenwood) + 0.00% (Clay County) + 4.50% (South Dakota State) = 6.50%
Total Sales Tax amount = $420 x 6.50% = $27.3
Gross Price (Amount after Tax) = 420 + 27.3 = $447.3
The sales tax amount charged on the Microwave Oven would be $27.3, raising the gross cost of it to $447.3.
Using our Sales Tax Calculator:
All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:
Our calculator will automatically calculate the result and represents it in 3 different forms, as shown in the image below:
In the example above, we have explained to you to calculate the Sales Tax amount payable in a product and the Gross Price of the Product.
But there are also instances when you are required to deduce how much Sales tax you have actually paid on a product in South Dakota.
This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our South Dakota Sales Tax Calculator can perform this calculation like a Pro.
Example:
The gross cost (amount after tax) of a Coffee Maker is $320, which you sell on your store in Roslyn, South Dakota. Now, if you want to deduce the amount of sales tax you have actually paid on it and the net cost (amount before tax) of a Coffee Maker, you can follow the steps below:
Gross Price (Amount after Tax) of Coffee Maker: $320
Total Sales Tax rate: 3.00% (Roslyn) + 0.00% (Day County) + 4.50% (South Dakota State) = 7.50%
Manual Method:
Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]
320 = [Net Price x ((7.5/100) + 1)]
320 = Net Price x 1.08
$296 = Net Price
So the original Price (net price) of the Coffee Maker would be $296.
Using our Sales Tax Calculator:
You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:
Our calculator will automatically calculate the result and represents it in 3 different forms.
Answer: 4.5% of sales tax is charged on the state level in South Dakota. On the top, many cities in the state levy local sales tax, which ranges from 0 to 3%.
Answer: 6.5% of the combined sales tax rate is charged in Sioux Falls, South Dakota, which comprises 2.00% of Sioux Falls city sales tax and 4.5% of South Dakota State sales tax.
Answer: es, all food sales are taxed in South Dakota at 4.5% of state sales tax plus city sales tax.