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South Dakota Sales Tax Rate

Written by:

Edited by:

Reviewed by: Daniel Javor

Published on April 7, 2022

Updated on September 13, 2022

South Dakota Sales Tax Rate

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South Dakota Sales Tax Rate

If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In South Dakota, the first step is visiting the department of revenue website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

What Products and Services Are Subject to Sales Tax in South Dakota?

tax concept with office supplies

Tangible property for sale, lease, or rent is subject to sales tax in South Dakota. Most services are also subject to sales tax. Sales of prescription medicines and gasoline are exempt from sales tax. 

South Dakota Sales Tax Rate

The sales tax rate in South Dakota is 4.5%.

Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.

How to Register for South Dakota Sales Tax

In South Dakota, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

  1. Fill out the state sales tax account application
  2. There is no fee to apply for a sales tax account in South Dakota.

Use our Sales Tax Calculator to calculate taxes and total purchase amount. 

Conclusion 

In South Dakota, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.