South Dakota Reverse Sales Tax Calculator.

South Dakota has a state sales tax rate of 4.2%, and municipalities can add their own local taxes. Most South Dakota cities add 2% locally, bringing the most common combined rate to 6.2%. Some municipalities add up to 2.75% locally, while others add less. The overall combined rates in South Dakota are moderate by national standards.

Sioux Falls has a combined rate of 6.2% (4.2% state + 2% Sioux Falls city). Rapid City is also approximately 6.2%. South Dakota does not have county sales taxes — the local add-ons come directly from municipalities.

South Dakota is historically significant in sales tax law because it was the plaintiff in the 2018 Supreme Court case South Dakota v. Wayfair. This landmark case ended the physical presence requirement for sales tax collection, forcing out-of-state online sellers to collect and remit sales tax in states where they have economic nexus. South Dakota's case was chosen because the state had specifically passed a law to test this issue.

South Dakota applies its sales tax broadly. Unlike many states, South Dakota taxes most food including groceries at the full combined rate. South Dakota is one of the few remaining states without a meaningful grocery exemption. Prescription drugs are exempt, but groceries, prepared food, and most other food items are taxable.

The South Dakota Department of Revenue administers the state and city sales taxes together. South Dakota participates in the SST agreement. Economic nexus threshold remains $100,000 in annual South Dakota sales or 200 transactions (the original Wayfair threshold).