South Dakota's Sales Tax Rate

South Dakota has a statewide sales tax of 4.5 percent. This is one of the lowest rates in the country. However, most South Dakota counties and cities add their own local sales tax on top of the state rate, so the total tax you pay at checkout depends on where you are shopping.

The combined rate—state plus local—ranges from 4.5 percent in a few areas to as high as 7.5 percent in others. When you buy something in South Dakota, the retailer charges you the full combined rate for that location. You do not pay state tax and local tax separately; the register shows one total.

Key Takeaways

  • South Dakota's state sales tax is 4.5 percent, but most counties and cities add local tax on top, raising the total to between 5 and 7.5 percent depending on location.
  • Groceries, prescription medications, and medical devices are exempt from South Dakota sales tax.
  • The sales tax applies to both in-store purchases and online orders shipped to a South Dakota address.
  • You can find your exact local rate by entering your address on the South Dakota Department of Revenue website or asking a retailer in your area.

How Local Tax Adds to the State Rate

South Dakota allows counties and cities to impose their own sales tax on top of the 4.5 percent state rate. A county might add 1 percent, and a city within that county might add another 0.5 to 1.5 percent. These local taxes go to fund schools, roads, and other local services.

Because of this layering, the total rate varies significantly across the state. Sioux Falls, the largest city, has a combined rate of 6.5 percent. Rapid City's combined rate is 6.5 percent as well. Smaller towns and rural areas may have lower combined rates. The only way to know your exact rate is to check your specific address or ask a store clerk.

What Is and Is Not Taxed

South Dakota taxes most goods and services, but several important categories are exempt. Groceries—food you buy to cook at home—are not taxed. Prescription medications and certain medical devices are also exempt. Clothing is taxed, but shoes and some protective equipment used for work are not.

Services like haircuts, repairs, and professional fees are generally taxed. Prepared food from restaurants and fast-food chains is taxed. If you are unsure whether a specific item is taxed, ask the retailer before you buy, or contact the South Dakota Department of Revenue.

Sales Tax on Online and Mail Orders

If you order something online or by mail and have it shipped to a South Dakota address, you owe South Dakota sales tax. The retailer is responsible for collecting and sending that tax to the state, even if the company is based outside South Dakota. This applies whether you shop from a large national retailer or a small business.

Some very small sellers may not collect tax, but you are still legally responsible for the tax owed. In practice, most major online retailers now collect South Dakota sales tax automatically at checkout.

Finding Your Local Sales Tax Rate

The South Dakota Department of Revenue maintains a sales tax rate lookup tool on its website. You enter your street address, city, and ZIP code, and the tool shows you the combined state and local rate for that location. This is the most accurate way to find your rate, since it accounts for all local taxes that explore to your specific address.

You can also call your city or county tax office, or straightforward ask a cashier at a local store what the total rate is. Retailers know their local rate and can tell you when ready.

How Sales Tax Appears on Your Receipt

When you check out, the register shows the subtotal (the price before tax), then adds the sales tax, and shows you the final total. The receipt breaks down the tax amount separately so you can see how much tax was charged. If you are buying multiple items at different tax rates—for example, groceries (no tax) and clothing (taxed)—the register calculates each correctly.

Online receipts work the same way. The tax line shows the amount charged based on your shipping address and the combined local and state rate for that location.

Frequently Asked Questions

Do I pay sales tax on groceries in South Dakota?

No. Groceries—food you buy to prepare and eat at home—are exempt from South Dakota sales tax. This includes items like bread, milk, vegetables, and meat from the grocery store. However, prepared food from a restaurant or deli counter is taxed.

What is the sales tax rate in Sioux Falls?

Sioux Falls has a combined sales tax rate of 6.5 percent. This includes the 4.5 percent state rate plus local taxes from Minnehaha County and the city of Sioux Falls. Rates can vary by a few blocks depending on city boundaries, so use the Department of Revenue lookup tool to confirm your exact address.

Do I have to pay sales tax on clothes?

Most clothing is taxed in South Dakota. However, some items like work boots and safety equipment may be exempt depending on how they are classified. If you are unsure, ask the retailer before you buy.

Will I owe sales tax if I order something online from out of state?

Yes. If the item is shipped to a South Dakota address, you owe South Dakota sales tax. Most large online retailers now collect this tax automatically at checkout. The tax rate is based on your shipping address, not where the company is located.

Where can I find the exact sales tax rate for my address?

The South Dakota Department of Revenue website has a sales tax rate lookup tool where you enter your street address and ZIP code. It will show you the combined state and local rate for your location. You can also contact your city or county tax office directly.