South Dakota state taxes

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South Dakota

By Bankrate.com

South Dakota is one of only seven states that does not tax individual wage income. More on South Dakota taxes can be found in the tabbed pages below.

Income

Sales

Property

Estate

Other

Personal income tax
	There is no personal income tax levied in South Dakota.

Sales tax
	The state sales tax in South Dakota is 4 percent.
	There may be additional municipal sales and use taxes. You can look up specific sales tax rates for specific addresses at the state's Department of Revenue & Regulation Web site.
	Eligible taxpayers can apply online for a refund of sales tax payments on food.

Personal and real property taxes
	Personal and property taxes are local taxes and are the primary source of dollars for school systems, counties, municipalities and other local government units. Their administration is a local responsibility. The state revenue department does not collect or use property taxes, but it does centrally assess the property of large companies.
	Property owners in South Dakota may be taxed by two or more of the following units of government: cities, counties, townships, school districts, water districts and, in some cases, units such as fire and sanitary sewer districts.
	Assessors determine the market value of property. Since 1997, all taxing districts (except school districts) have been capped as to what they can ask from the tax rolls. The cap equals what was payable the previous year plus a percentage increase due to growth or new construction, and the percentage increase in the Consumer Price Index (CPI) up to but not exceeding 3 percent.
	The state offers a number of property tax relief programs that are designed to offer financial assistance to the elderly and disabled.
	Taxpayers may appeal property tax issues directly to the County Board of Equalization.

Inheritance and estate taxes
	South Dakota voters repealed the state's inheritance tax effective June 30, 2001.
	Because of the phaseout of the federal estate tax credit, South Dakota's estate tax has not been imposed on estates of persons who died since 2005.

Other South Dakota tax facts
	South Dakota does not assess tax on intangible personal property.
	South Dakota's Department of Revenue Special Tax Division is responsible for licensing and collecting a variety of state taxes. They include cigarette excise, bank franchise, ore, energy mineral severance, coin operated Laundromat license fees, gaming excise and beer, wine and distilled spirits.