How South Dakota Sales Tax Works
South Dakota's state government imposes a 4.20% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 6.11% statewide.
South Dakota cut its state sales tax rate from 4.5% to 4.2% in 2023 — but only through 2027, after which it returns to 4.5% unless extended.
Groceries in South Dakota
South Dakota taxes groceries at the full state rate; the state has not adopted a grocery exemption.
How South Dakota Compares to Neighboring States
Sales tax on a $1,000.00 purchase in South Dakota versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. South Dakota |
|---|---|---|---|---|
| South Dakota (here) | 4.20% | 6.11% | $61.10 | — |
| North Dakota | 5.00% | 7.04% | $70.40 | +$9.30 |
| Minnesota | 6.88% | 8.05% | $80.50 | +$19.40 |
| Iowa | 6.00% | 6.94% | $69.40 | +$8.30 |
| Nebraska | 5.50% | 6.99% | $69.90 | +$8.80 |
| Wyoming | 4.00% | 5.44% | $54.40 | -$6.70 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the South Dakota sales tax rate for 2026?
South Dakota's state sales tax rate is 4.20% for 2026. When combined with the average local sales tax of 1.91%, most South Dakota residents pay a typical combined rate of 6.11%.
How much sales tax will I pay on a $100 purchase in South Dakota?
On a $100 purchase, expect approximately $4.20 in state sales tax, or about $6.11 including average local sales tax (combined 6.11%). Total cost: roughly $106.11.
Are groceries taxed in South Dakota?
South Dakota taxes groceries at the full state rate; the state has not adopted a grocery exemption.
Is sales tax calculated before or after discounts in South Dakota?
South Dakota follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this South Dakota sales tax estimate calculated?
The calculator applies South Dakota's 4.20% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with South Dakota's Department of Revenue tool.