Income Tax
South Dakota levies no personal income tax and no corporate income tax, making it one of only a handful of states without either.
| Indicator | South Dakota | U.S. |
|---|---|---|
| Top Personal Income Tax Rate (%) | 0 | 4.5 |
- •South Dakota is one of only nine U.S. states with no personal income tax.
Property Tax
South Dakota's effective property tax rate is 1.17%, higher than many states without an income tax.
| Indicator | South Dakota | U.S. |
|---|---|---|
| Effective Property Tax Rate (%) | 1.17 | 0.9 |
- •Property taxes are a major local revenue source in South Dakota since the state collects no income tax.
Sales Tax
South Dakota's state sales tax rate is 4.2%, with an average combined state and local rate of 6.4%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED SDSALESTAX).
| Indicator | South Dakota | U.S. |
|---|---|---|
| Average Combined Sales Tax Rate (%) | 6.4 | 7 |
- •South Dakota v. Wayfair, the landmark internet sales tax case, originated from this state's sales tax law.
Tax Burden
South Dakota's total state and local tax burden is about 8.4% of income, one of the lowest in the nation.
State tax collections per resident
1990–2025Census tax collections (SDTOTLTAX) divided by Census resident population (SDPOP).
| Indicator | South Dakota | U.S. |
|---|---|---|
| Total Tax Burden (%) | 8.4 | 11.2 |
- •South Dakota has no personal or corporate income tax, contributing to its low overall tax burden.
Tax Revenue
South Dakota relies primarily on sales and property taxes for state and local revenue, given the absence of an income tax.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED SDTOTLTAX).
| Indicator | South Dakota | U.S. |
|---|---|---|
| Total Tax Burden (%) | 8.4 | 11.2 |
- •South Dakota's lack of income tax revenue makes sales tax collections especially important to the state budget.