Tax

South Dakota Tax

South Dakota Tax

South Dakota Tax

Corporate Income Tax Forms

Form 1934 Sales and Use Tax Return 

Form 1933 Contractor Excise Tax Return

Sales Tax Forms

Form Sales and Use Tax Guide

Form E1350V8 Use Tax Form

Form E1934V7 Sales Return

Property Tax Forms

Form PT-38C Application for Property Tax Homestead Exemption

South Dakota’s tax burden, at 7.6% of income is well below the national average of 9.8%.  There is no individual state income tax.  There are however, excise and sales taxes.  There are also property taxes that must be given consideration.  

South Dakota state sales – 4%, prescription drugs exempt, local sales tax can add 2.75%.  This is lower than most other states.  

South Dakota personal income tax

There are no personal income taxes.  

South Dakota excise taxes

Taxes will be assessed on alcohol, tobacco, gasoline and other miscellaneous items, at the discretion of the state.

– $1.53 per package of 20 cigarettes

– $3.93/gallon on spirits

– $.93 per gallon on table wine

– $.27 per gallon of beer

– There is an additional 2% wholesale tax on wines and spirits

– $.24/gallon on gasoline

South Dakota inheritance tax 

The inheritance tax was repealed by voters in 2001.  Estate tax is not collected as the federal government no longer provides a federal estate tax credit.

South Dakota payroll taxes

State Disability Insurance – none

State Unemployment Insurance – 0% to 10.33%, wage base is $11,000.  New employer contribution is 1.75%.  New construction employers use 6.55%.

State minimum wage follows federal standards

South Dakota state property tax

As South Dakota does not have personal income taxes, property taxes fund schools and local governments.  The state does not collect property taxes but will conduct assessments for taxation.

Properties are taxed by two or more of the following governments:

– Cities

– Counties

– Townships

– school districts

– water districts

– fire districts

– sanitary sewer districts

Local tax assessors assess properties for taxation and all but schools are capped in the amount they can tax per property.  Property is assessed for 85% of its market value.  The tax cap increases with changes in the consumer price index, as well as new construction on the house.  A county Board of Equalization will hear all complaints regarding assessed taxation.

South Dakota state corporate tax

There is no corporate tax rate in South Dakota.  Companies will be assessed for property taxes.

Exemptions

Needy residents (yearly income under 9,750 for single or $12,750 for household) that are 65 and older may be eligible for a sales tax refund.

Disabled veterans may receive a property tax exemption of up to $100,000 on the assessed value of their house.  The veteran must be totally disabled to receive this exemption

Single homeowners that are 66 or older can receive a refund of 35% of taxes paid if the combined household income is less than $13,250.

Disabled, social security and veteran’s benefits are generally exempt from taxation.

In an effort to stimulate business growth in South Dakota, South Dakota has the lowest business tax burden in the country. Average South Dakotans only spend 7.9% of their income of taxes. South Dakota ranks 20th in states with the lowest tax burden. 

The state does not levy corporate or personal state income taxes. The state's only form of direct taxation is the property tax; however, the state's property taxes represent the median property tax rates in comparison to the other 49 states. Sales taxes are not levied by the state government. Instead, county governments legislate the sales tax rate. The highest sales tax in South Dakota is 6%. Only tangible property is taxable in South Dakota.

Corporate Taxes

South Dakota does not impose a corporate income tax on businesses headquartered within the state. South Dakota imposes a bank franchise tax and a bank card tax estimated at $87 per capita. Many corporations are choosing to move to Dakota because corporate taxes within the state are lower than most states.  

Personal Income Taxes

South Dakota does not impose state personal income taxes. 

Sales Taxes

South Dakota consumers pay general sales taxes as determined by the county. The State sales tax rate is 4%. Sales taxes also apply to services that are used instead of purchased. Pierre, the state capital, makes about $1,600 per resident in general and selective sales taxes. Gas sales taxes in South Dakota are imposed by the state government. The Gas tax rate currently stands at 24 cents per gallon. Cigarette Taxes are among the lowest in the county at $1.53 per pack. The State sales taxes were first implemented in 1933. Tobacco taxes were adopted in 1923. South Dakota taxes table wine at 93 cents per gallon and beer at 27 cents per gallon. 

Businesses collect sales taxes and are obliged to send the revenue to the government. Lessees of motor vehicles pay 4.5% of the total receipts. In an effort to bolster tourism to the Mount Rushmore state, South Dakota imposes a 1% tax on tourism related services. Consumers who buy products on Indian reservations are exempt from paying South Dakota sales taxes. Indian Reservations collect their own sales taxes, give the revenue to Pierre and are reimbursed according to the state population ratio of Native Americans to non-Native Americans within a county.

Property Taxes 

Property taxes in South Dakota represent the median range of property taxes when compared to other states. The government's coffers fill with approximately $1,000 of revenue from property owners. Property taxes are levied by the county governments. South Dakota is one of 13 states that do not levy property taxes at the state level.  If you need legal advice and assistance, contact South Dakota lawyers.

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