South Dakota sales tax plays an important role in generating revenue for the state and contributing to the funds of various public services such as education, transportation, and entertainment. If you are a business owner, operating in this sector for a prolonged time, understanding how South Dakota sales tax operates is crucial to make informed financial decisions. However, updating the ever-changing state tax laws is not an easy task. It requires enough time and knowledge. At Tax 365, we keep our clients informed of the latest South Dakota sales tax rates and regulations to keep their businesses compliant with tax protocols so that they can concentrate on their business growth.

South Dakota’s sales tax rate is 4.5%. However, local taxes are added to this, depending on locations. The local taxes are added to the base state tax, which varies as per location and therefore, the total sales tax rate in South Dakota can be higher. At Tax 365, we help our clients to calculate the exact South Dakota sales tax rate by county through our online South Dakota sales tax calculator. It shows you the exact amount of tax that you need to collect and remit to the government based on your location. The state of South Dakota sales tax is applied to a number of tangible goods and services including furniture, clothing, electronics, etc. Along with this, professional and repairing services are also subjected to sales tax in South Dakota. Along with this, South Dakota digital sales tax is imposed on digital books, music, and videos. 

While South Dakota does not exempt any specific category from sales tax, still there are a few notable exceptions that include prescription drugs, different types of agricultural products, farm types of machinery, etc.