The South Dakota state sales tax rate is 4.2% in 2026. When county and city taxes are added, the combined rate ranges from 4.2% in areas with no local additions up to 6.5% in the highest-taxed jurisdictions. The most populated areas of South Dakota — including Minnehaha County — have a combined rate of 6.2%.
South Dakota has no state income tax. The state taxes groceries at the full rate. South Dakota was the winning state in the landmark 2018 Supreme Court case South Dakota v. Wayfair which established economic nexus rules for online sellers nationwide.
💡 Quick Reference: $100 purchase in South Dakota at the average combined rate costs approximately $105.35 after tax. Use the calculator above to find the exact amount for any county or city in South Dakota.
Groceries in South Dakota are taxable at full rate in South Dakota. Clothing purchases are taxable at full rate. Prescription drugs and medical devices are generally exempt from sales tax in South Dakota, as they are in most US states.
Common South Dakota Sales Tax Exemptions
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Prescription Medicine
Prescription drugs are fully exempt from South Dakota sales tax.
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Grocery Food
Unprepared groceries are taxable at full rate in South Dakota in South Dakota.
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Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
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Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in South Dakota.
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Clothing
Clothing is taxable at full rate in South Dakota.
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Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does South Dakota Sales Tax Work?
Sales tax in South Dakota is collected at the point of purchase by retailers and remitted to the South Dakota Department of Revenue. The total rate you pay is the sum of the South Dakota state rate (4.2%) plus any applicable county and city rates in your location.
Businesses with a physical presence in South Dakota — including offices, warehouses, or employees — have sales tax nexus and must collect and remit South Dakota sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in South Dakota annual sales or 200+ South Dakota transactions must also register and collect South Dakota sales tax even without a physical presence.
📅 South Dakota Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the South Dakota Department of Revenue based on your sales volume. File and pay online through the South Dakota state tax portal.
The South Dakota state sales tax rate is 4.2% in 2026. With county and city additions, combined rates range from 4.2% to 6.5% depending on your location. The most common combined rate in populated South Dakota counties is around 5.35%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in South Dakota are taxable at full rate in South Dakota. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate South Dakota sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Minnehaha County at 6.2%: $200 × 0.62 = $12.40 in sales tax, making the total $212.40. Or simply use the free South Dakota sales tax calculator at the top of this page.
Yes, if you meet South Dakota’s economic nexus threshold. Remote sellers must collect and remit South Dakota sales tax if they have $100,000 or more in South Dakota sales or 200+ separate South Dakota transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in South Dakota.
Most services are not subject to South Dakota sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in South Dakota — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the South Dakota Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in South Dakota is 6.5%, which occurs in areas with the maximum local tax additions on top of the 4.2% state base rate. The lowest rate is the state base rate of 4.2% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of South Dakota.