South Dakota

SD2026 Tax Data
Income Tax
N/A
Sales Tax
4.50%
Property Tax
1.23%

South Dakota Tax Overview 2026

South Dakota does not impose a state income tax. The state sales tax rate is 4.50% and property taxes average 1.23% of home value.

  • Sales Tax: Base rate 4.50%. Combined rate up to 8.00% with local taxes.
  • Groceries: Subject to full sales tax
  • Prescriptions: Exempt from sales tax
  • Clothing: Subject to sales tax
  • Property Tax: Effective rate of 1.23% on a median home value of $178,600

South Dakota Tax FAQ

What is the income tax rate in South Dakota for 2026?

South Dakota does not impose a state income tax on wages. Some states may tax specific types of income like interest and dividends.

What is the sales tax rate in South Dakota?

The base state sales tax rate in South Dakota is 4.50%. With local taxes, the combined rate can reach up to 8.00%. Groceries are generally subject to sales tax.

Does South Dakota tax retirement income?

South Dakota does not tax retirement income because it has no state income tax.

What is the standard deduction in South Dakota for 2026?

The standard deduction for single filers in South Dakota is $0 and $0 for married couples filing jointly.

How do South Dakota tax rates compare to other states?

South Dakota's top income tax rate of 0% is below the national average. Combined state and local sales tax rates in South Dakota are 4.50%. Use our comparison tools to see how South Dakota stacks up against neighboring states.