2026 South Dakota Sales Tax Guide

Keeping up with sales tax in South Dakota can be tricky, especially with varying local sales tax rates.

That’s where this guide comes in! We’ll break down South Dakota’s sales tax system, explain the sales tax nexus, and walk you through the process of collecting and remitting taxes with ease.

We’ll also share a reliable solution for streamlined sales tax management that ensures sales tax compliance across the United States.

South Dakota Sales Tax Rate 2025

South Dakota has a state sales tax rate of 4.2%.

Additionally, South Dakota local bodies may levy local sales taxes. They might also impose a 1% municipal gross receipts tax (MGRT) on products like alcoholic beverages, eating establishments, lodging accommodations, etc.

Collecting South Dakota Sales Tax from Customers

Here’s what you should know about collecting sales tax in South Dakota:

Do I Have to Collect South Dakota Sales Tax from Customers?

Businesses that exceed specific revenue thresholds should obtain a South Dakota sales tax license and collect the applicable sales tax.

What Creates Sales Tax Nexus in South Dakota?

If you meet any of the following conditions, you have a sales tax nexus in South Dakota:

• Physical presence: Businesses that have a physical presence in South Dakota.
• Economic nexus: Remote sellers whose gross revenue from sales into South Dakota exceeds $100,000 in the current or previous calendar year.

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Sales Tax from South Dakota Customers if I Sell on Amazon, Walmart, eBay, or Etsy?

No. 

South Dakota has a marketplace facilitator law that requires platforms like Etsy or Amazon to collect sales tax of third-party sellers on their platforms. However, if a marketplace seller’s sales don’t exceed $100,000, they don’t have to register, collect, or remit South Dakota sales tax.

Zamp Tip

You must collect sales tax on your non-marketplace South Dakota sales if you still meet the state’s other sales tax nexus rules.

Taxable Products in South Dakota

Most of the products are taxed in the state. Here’s a comprehensive breakdown of the items subject to sales tax in South Dakota:

Are Groceries Taxable in South Dakota? 

Yes, grocery items are taxed in the state’s sales tax.

Is Clothing Taxable in South Dakota?

Yes, clothing is taxed in South Dakota.

Are Digital Products Taxable in South Dakota?

Yes, products transferred electronically are taxable in South Dakota.

Is Software-as-a-Service (SaaS) Taxable in South Dakota?

Yes, South Dakota taxes computer software.

Are Services Taxable in South Dakota?

Most services are taxed in South Dakota. Some exceptions are health, education, and agricultural services.

Tax-Exempt Items

Some items that are sales tax exempt in South Dakota are:

• The sale of drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, and medical devices under a doctor’s prescription.
• Repair parts, services, and maintenance for farm machinery, attachments, and irrigation equipment are exempt from sales and use tax.
• Sales of gasoline, diesel fuels, gasohol, alcohol fuels, propane, kerosene, aviation fuel, jet fuel, and other similar combustible fuels are subject to the South Dakota fuel tax.

How to Register for a South Dakota Sales Tax Permit

You can register online at the South Dakota Department of Revenue website.

Learn how to register for a seller’s permit in every US state.

Do I Need a South Dakota Sales Tax License if I’m Only a Wholesaler? 

Yes, you need a state tax permit even if you’re a wholesaler. However, businesses with an exemption certificate and buy products for resale without paying sales tax.

How to Collect Sales Tax in South Dakota

South Dakota follows destination-based sales tax sourcing for both in-state and out-of-state businesses. This means that if you sell to a resident living in South Dakota, you must apply the sales tax rate based on the buyer’s shipping address.

Should You Collect Sales Tax on Shipping Charges in South Dakota?

Yes, delivery charges for taxable products are subject to sales tax whether the delivery charges are on the same invoice as the product or separately invoiced.

How to File and Pay Sales Tax in South Dakota

There are multiple ways to file and pay South Dakota sales tax:

• Automated: Let Zamp handle your South Dakota sales tax filing and remittance so you won’t ever have to deal with a sales tax return.
• File online: File electronically through the EPath.

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing South Dakota Sales Tax

What Is Use Tax?

South Dakota state and municipal use tax applies to all products and services if sales tax is not collected at the time of purchase. The use tax rate is the same as the sales tax rate.

What Is the Penalty for Filing and/or Paying South Dakota Sales Tax Late?

A 10% penalty (minimum $10) applies if a return is over 30 days late, regardless of tax due. Additionally, a 1% interest charge applies each month on unpaid taxes until fully paid, with a minimum of $5 interest in the first month.

Can I Amend a South Dakota Sales Tax Return? 

You can amend your return through EPath if you have an account. If you file by paper or cannot amend it via EPath, just call 1-800-829-9188 for assistance.

How Often Do I Need to File and Pay Sales Tax in South Dakota?

All electronic returns should be filed by the 20th of the month, while electronic payments are due on the 25th of the month in which the return is due. All paper returns must be filed, and payments should be made by the 20th of the month the return is due. 

South Dakota Sales Tax Due Dates

South Dakota monthly sales tax filing due dates:

South Dakota quarterly sales tax filing due dates:

South Dakota annual sales tax filing due dates:

Let The Experts Handle Your South Dakota Sales Tax Filing

Struggling with sales tax complexities? Well, Zamp is here to change that.

With quick setup, precise calculations, and seamless one-click filing and registration, Zamp takes the stress out of sales tax management.

Start with Zamp today, and let us help your business grow!