What is the sales tax in South Dakota?
Combined rate, the threshold that makes you register, and the rules that decide what you charge.
The South Dakota state sales tax rate is 4.2%. Local rates average 1.91%, for a combined average of 6.11%, and reach 6.5% in the highest jurisdictions. A remote seller has to register once sales into South Dakota pass $100,000 in sales into the state over the previous or current calendar year. Charge the rate at the buyer’s address.
- State rate
- 4.2%
- Average local rate
- 1.91%
- Combined average
- 6.11%
- Highest in the state
- 6.5%
Do you have to register?
Economic nexus threshold
$100,000
Measured over the previous or current calendar year. Order count does not matter here, only the dollar figure. Physical presence — staff, an office, or stock sitting in a 3PL in the state — creates the obligation immediately, before any threshold applies.
What you charge, and on what
- Which address sets the rate Charge the rate at the buyer’s address.
- Is shipping taxed Taxable. Delivery charges on taxable goods are taxable.
- Clothing Taxed at the same rate as everything else.
- Groceries Taxed at the full rate
- Marketplace sales Amazon, Walmart, Etsy, and eBay collect and remit on the orders they process. Sales through your own store stay yours to collect on.
- Registering Covered by the Streamlined Sales Tax registration, so you can register here and in the other member states in one application.
Worth knowing about South Dakota
- The state rate is temporarily reduced to 4.2% and is scheduled to return to 4.5% in mid-2027.
- This is the state behind the Wayfair decision that created economic nexus everywhere.
- The 200-transaction test was removed in 2023.
South Dakota sales tax questions
What is the sales tax rate in South Dakota?
The state rate is 4.2%. Local jurisdictions add an average of 1.91% on top, which puts the typical combined rate at 6.11% and the highest at 6.5%. Because the rate follows the address, the figure you charge depends on where the order is going.
When does a remote seller have to register in South Dakota?
Once sales into the state pass $100,000 in sales into the state over the previous or current calendar year. Order count does not matter here — the dollar figure is the only trigger. Physical presence, including inventory held at a 3PL in the state, creates the obligation immediately, before any threshold applies.
Is shipping taxable in South Dakota?
Taxable. Delivery charges on taxable goods are taxable.
Is clothing taxed in South Dakota?
Clothing is taxed at the same rate as other goods. South Dakota does not exempt apparel.
Where the authoritative number is
Rates and thresholds change, and the South Dakota Department of Revenue sets them. Check there before you register or file. This is a Streamlined Sales Tax member state, so you can also register here and in the other member states through one free application.
Other states with a $100,000 threshold
Know before you cross the line
The threshold above is easy to read and hard to track, because it counts sales from your store, your marketplaces, and your wholesale accounts together. Endless keeps those on one source of truth, so what you have sold into South Dakota this year is a number you already have rather than one you assemble after the fact.
This page is a reference, not tax advice. Confirm registration and filing decisions with the South Dakota Department of Revenue or a tax professional.