2026 South Dakota sales tax guide
It's no secret that South Dakota sales tax is complex, but an automated solution can streamline your business.
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- South Dakota Sales Tax Rate 2025
- Collecting South Dakota Sales Tax from Customers
- Taxable Products in South Dakota
- How to Register for a South Dakota Sales Tax Permit
- How to Collect Sales Tax in South Dakota
- How to File and Pay Sales Tax in South Dakota
- FAQs on Paying and Filing South Dakota Sales Tax
- Let The Experts Handle Your South Dakota Sales Tax Filing
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.
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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.
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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 subjected to the South Dakota fuel tax.
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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:
| Taxable Period | Filing Due Date |
|---|---|
| January 2025 | February 20, 2025 |
| February 2025 | March 20, 2025 |
| March 2025 | April 21, 2025 |
| April 2025 | May 20, 2025 |
| May 2025 | June 20, 2025 |
| June 2025 | July 21, 2025 |
| July 2025 | August 20, 2025 |
| August 2025 | September 22, 2025 |
| September 2025 | October 20, 2025 |
| October 2025 | November 20, 2025 |
| November 2025 | December 22, 2025 |
| December 2025 | January 20, 2025 |
South Dakota quarterly sales tax filing due dates:
| Taxable Period | Filing Due Date |
|---|---|
| Q1 (Jan-March) 2025 | April 21, 2025 |
| Q2 (Apr-June) 2025 | July 21, 2025 |
| Q3 (July-Sept) 2025 | October 20, 2025 |
| Q4 (Oct-Dec) 2025 | January 20, 2026 |
South Dakota annual sales tax filing due dates:
| Taxable Period | Filing Dates |
|---|---|
| 2025 | January 20, 2026 |
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!
Get Help for Your Company
30-minute call
sales tax expert
off your plate
- South Dakota Sales Tax Rate 2025
- Collecting South Dakota Sales Tax from Customers
- Taxable Products in South Dakota
- How to Register for a South Dakota Sales Tax Permit
- How to Collect Sales Tax in South Dakota
- How to File and Pay Sales Tax in South Dakota
- FAQs on Paying and Filing South Dakota Sales Tax
- Let The Experts Handle Your South Dakota Sales Tax Filing
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