SOUTH DAKOTA Sales Taxes
State Sales Tax: 4% (prescription drugs exempt); municipalities may add up to an additional 2.75%. Residents who are age 65 and older and have a yearly income of under $10,250 (single) or in a household where the total income was under $13,250 are eligible for a sales tax refund.
Gasoline Tax: :* 24 cents/gallon
Diesel Fuel Tax: * 24 cents/gallon
Cigarette Tax: $1.53 cents/pack of 20
Personal Income Taxes
Property is assessed at 85% of market value between counties. Assessors determine the market value of property by using a combination of the following three approaches: (1) Cost approach whereby the assessor estimates the cost of replacing the property (structures), reduces that amount by its age (depreciation) and adds the value of the land. (2) Market approach whereby the assessor compares the subject property to like properties that have recently been sold. (3) Income approach in whereby the assessor uses the value of the projected income from a property to determine its value. For more information, click here.
Property taxes are assessed and collected by local government entities. A tax freeze and/or municipal property tax reduction is available for seniors age 65 and older, and disabled persons. Single homeowners 66 and older who earn $10,250 or less can get a refund of up to 35% of taxes paid. Multi-person households headed by someone 66 and older, where the combined income is $13,250 or less, are eligible for a refund of up to 55% of taxes paid. The state has several other property tax relief programs. For details, click here and here.
There is a property tax exemption for disabled veterans. Veterans that have been rated as permanently and totally disabled as the result of a service connected disability may be eligible for up to $100,000 of their property value to be exempt from property taxes. Click here for details.
The state has a property tax homestead exemption that delays payment of property taxes until the property is sold. Taxes are a lien on the property and must be paid along with 4% interest before the property can be transferred. For a single person annual income must be less than $16,000. For a multimember household, the limit is $20,000. For more information click here.
For more information on all property taxes, click here or call 800-829-9188.
Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is limited and related to federal estate tax collection.
For further information, visit the South Dakota Department of Revenue site or call 800-829-9188.
* Tax rates to do not include local option tax of 1 cent.