Estimate only — not tax advice. For decisions specific to your situation, consult a qualified professional. See methodology and sources.
South Dakota Sales Tax
State + average local combined rate, category exemptions, and how it compares to neighbors.
State rate
4.20%
Average combined (state + local)
6.41%
Category exemptions
| Category | Rule | Detail |
|---|---|---|
| Groceries | Taxed (full rate) | Reduced from 4.5% to 4.2% in 2023 (applies statewide) |
| Clothing | Taxed (full rate) | Everyday apparel and footwear. |
| Prescription drugs | Exempt | Prescribed medications dispensed by a licensed pharmacist. |
Example: $100 purchase
- State sales tax only: $4.20
- Combined (state + average local): $6.41
- Total with combined tax: $106.41
Major cities in South Dakota
| City | Combined rate | vs state avg |
|---|---|---|
| Sioux Falls | 6.60% | +0.19% |
| Rapid City | 6.40% | -0.01% |
| Aberdeen | 6.60% | +0.19% |
| Brookings | 6.60% | +0.19% |
| Watertown | 6.60% | +0.19% |
Border shopping — vs neighboring states
For larger purchases, driving to a neighbor with lower combined rate can save real money.
| State | State rate | Avg combined | vs SD | Save on $1,000 |
|---|---|---|---|---|
| South Dakota (current) | 4.20% | 6.41% | — | — |
| Montana | 0.00% | 0.00% | -6.41% | $64.10 |
| Wyoming | 4.00% | 5.44% | -0.97% | $9.70 |
| Iowa | 6.00% | 6.94% | +0.53% | — |
| Nebraska | 5.50% | 6.97% | +0.56% | — |
| North Dakota | 5.00% | 7.04% | +0.63% | — |
| Minnesota | 6.88% | 8.05% | +1.64% | — |
Common questions
- What is the sales tax rate in South Dakota?
- South Dakota levies a 4.20% state sales tax. With local taxes added, the statewide average combined rate is 6.41%. Actual rate at the register depends on your city and county.
- Does South Dakota tax groceries?
- Yes — South Dakota taxes groceries at the full combined rate. Reduced from 4.5% to 4.2% in 2023 (applies statewide)
- Does South Dakota have a sales tax holiday?
- South Dakota does not run an annual sales tax holiday. For tax-free shopping, consider neighboring states with holidays, or use online retailers based in no-sales-tax states (OR, MT, NH, DE) — though use tax may still apply on out-of-state purchases.
- Who collects sales tax in South Dakota?
- The South Dakota Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to South Dakota must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local rates vary by city and county — your actual rate at the register may differ from the state average. Category-specific exemptions (groceries, prescription drugs, clothing) and tax holidays change by year; check the South Dakota DOR for current rules. All states →
Last reviewed: · Beforeview Editorial · editorial policy