State of South Dakota Sales Tax The 2016 South Dakota State Sales Tax

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What is the 2016 South Dakota Sales Tax Rate?

South Dakota Sales Tax Rate

4.00%

2016 South Dakota state sales tax
Exact tax amount may vary for different items

The South Dakota state sales tax rate is 4%, and the average SD sales tax after local surtaxes is 5.83%.

  • Counties and cities can charge an additional local sales tax of up to 2%, for a maximum possible combined sales tax of 6%
  • South Dakota has 142 special sales tax jurisdictions with local sales taxes in addition to the state sales tax
  • South Dakota has a higher state sales tax than 76.9% of states

Counties and cities in South Dakota are allowed to charge an additional local sales tax on top of the South Dakota state sales tax. In addition, local governments can levy "gross receipts taxes" on specific industries, such as lodging, restaurants, or alcohol distributors on top of the general sales tax.

North Dakota seasonally raises the sales tax for tourism-related businesses by 1.5% in the summer months, and some tribal governments on reservations have special permission from the state government to collect special sales taxes within their jurisdictions.

The sales tax in South Dakota has a broad base that includes more services than most states, so their sales tax revenues are generally higher then other states with comparable sales tax rates/

If you are a South Dakota business owner, you can learn more about how to collect and file your South Dakota sales tax return at the 2016 South Dakota Sales Tax Handbook .

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South Dakota Sales Tax Exemptions

South Dakota does not exempt any types of purchase from the state sales tax. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Unlike many states, South Dakota treats both candy and soda as groceries for sales tax purposes. Other items including gasoline, alcohol, and cigarettes are subject to various South Dakota excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The SD sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. South Dakota's sales tax rates for commonly exempted items are as follows:

Groceries: 4% Clothing: 4% Prepared Food: 4% Prescription Drugs: 4% Non-Prescription Drugs: 4%
South Dakota sales tax for a restaurant meal
$100 Restaurant Dinner
South Dakota sales tax for groceries
$100 of groceries
South Dakota sales tax for clothing
$100 in clothes
South Dakota sales tax for general consumer products
$100 of consumer products
$4.00 sales tax
$104.00 total
$4.00 sales tax
$104.00 total
$4.00 sales tax
$104.00 total
$4.00 sales tax
$104.00 total

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South Dakota Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the South Dakota sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a South Dakota Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a South Dakota state sales tax exemption certificate, which can be obtained from the South Dakota Department of Revenue . On making an exempt purchase, Exemption Certificate holders may submit a completed South Dakota Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full South Dakota sales tax code) can be downloaded from the South Dakota Department of Revenue here .

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South Dakota Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed South Dakota retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our South Dakota sales tax calculator.

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South Dakota Use Tax [View Main Article]

If you buy goods and are not charged the South Dakota Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 4% sales tax (less any foreign sales tax paid) for these items yourself as the South Dakota Use Tax.

Your are expected to voluntarily list your liable purchases on a South Dakota Use Tax Return, which should be attached with payment to your South Dakota Income Tax Return. Historically, compliance rates with with the South Dakota Use Tax have been low.

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South Dakota Local Sales Taxes

South Dakota does not allow local jurisdictions like cities or counties to collect a local sales tax. The South Dakota state sales tax of 4% is applicable statewide. You can view the sales tax rates for various cities in South Dakota here.


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