Some people might be surprised to learn this because South Dakota is home to some of the richest people in the country. T. Denny Sanford, who made his money in the credit card business, has a net worth of more than $2 billion, as an illustration. Sanford spends time in both South Dakota and Florida, hence he isn’t actually a resident of South Dakota.
South Dakota doesn’t have any billionaires, but it does provide a number of tax benefits that high net worth individuals can find appealing. South Dakota, for instance, doesn’t impose either a corporate or personal income tax. In addition, there are no intangible personal property taxes, gift taxes, or inheritance taxes in the state. Due to this, South Dakota may be a desirable location for those seeking to lower their tax obligations.
When compared to other states, South Dakota is renowned for having comparatively low taxes. A big contributing element is the absence of personal and corporate income taxes, although the state also has a comparatively low sales tax rate of 4.5%. This is significantly less than the 7.12% national average. In fact, South Dakota, just behind Oregon, has the second-lowest sales tax rate in the nation.
Now let’s talk about North Dakota, which does impose a sales tax. The state’s 5% sales tax rate as of 2021 is just a tad higher than South Dakota’s 5% rate. However, North Dakota does not impose a personal income tax, which can appeal to wealthy people.
Despite the fact that South Dakota may not be home to any billionaires, it does offer a number of tax benefits that high net worth individuals may find appealing. Additionally, in comparison to other states, the state’s sales tax rate is quite low. In terms of North Dakota and California, both have sales taxes, with California having a higher sales tax rate and North Dakota having no personal income tax.