Sales Tax in Colton, South Dakota in 2025

We'll walk you through how the sales tax rate is determined for Colton and address some common questions you may have. We'll also cover how to collect, audit, and remit sales tax in Colton.

Plus, we’ll share the best solution that will ensure you are always compliant across the entire sales tax lifecycle.

Disclaimer: Our sales tax data is updated on a quarterly basis. 

Colton Sales Tax Rate 2025

Colton is located in Minnehaha County in South Dakota, United States, and has a sales tax rate of 6.200%. This is the combination of local and state sales tax rates.

Here is the breakdown of the Colton's sales tax:

Tax Jurisdiction	Sales Tax Rate
South Dakota State Tax	4.200%
City Tax	2.000%
Combined Rate	6.200%

This rate applies to the following zip codes in Colton:

57018

How Does the Colton Sales Tax Compare to the Rest of South Dakota?

Colton has one of the lowest sales tax rates in South Dakota. At 6.200%, it is only 2.000% higher than South Dakota’s lowest rate (4.200% in places such as Virgil).

In contrast, Colton’s rate is 1.000% lower than South Dakota’s highest rate (7.200% in places such as Roslyn).

To give you a better idea, here’s a comparison of Colton sales tax rates with a few other cities in South Dakota:

City	Sales Tax Rates
Virgil	4.200%
South Shore	5.200%
Canova	6.150%
Colton	6.200%
Roslyn	7.200%

You can also compare the sales tax rate of Colton against the South Dakota cities closest in population size:

• Estelline's sales tax rate is 6.200%
• Philip's sales tax rate is 6.200%

What Creates Sales Tax Nexus in Colton?

Colton follows the same sales tax nexus rules as South Dakota.

Read More: Check out this detailed guide on Sales Tax in South Dakota.

You have sales tax nexus in Colton if you fulfill any of these conditions:

• 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.

What Products Are Exempt from Colton Sales Tax?

Colton follows South Dakota's sales tax rules with no special exceptions.

The following items are exempt from sales tax in Colton:

• 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.

Who Needs a Sales Permit in Colton?

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

How to Collect Sales Tax in Colton

South Dakota follows destination-based sales tax sourcing for both in-state and out-of-state businesses, which also applies for Colton. 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.

Learn more about origin-based and destination-based sales tax sourcing here.

How to File and Pay Sales Tax in Colton

You can file Colton sales tax returns using the these methods:

• 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.