One of the nine states in the union without a personal income tax, including no tax on Social Security payments, is South Dakota. As a result, South Dakota does not tax Social Security income. Furthermore, there is no estate tax or inheritance tax in South Dakota.
South Dakota does, however, levy a sales tax. South Dakota’s state sales tax is 4.5%, although local governments may impose additional levies. For instance, Sioux Falls, South Dakota, charges a 6.5% sales tax. You can apply the following calculation to determine the South Dakota sales tax due on a purchase: Price plus (Price x Sales Tax Rate) = Total Cost.
South Dakota levies property taxes in addition to a sales tax. With an average property tax rate of 1.32%, South Dakota has one of the lowest rates in the country. Property taxes, which are based on the value of the property, are used to pay for local public services like roads and schools.
In South Dakota, you might need to obtain a resale certificate if you own a business. Using a resale certificate, business owners can purchase products or services to resell without having to pay sales tax. You must submit an application with the South Dakota Department of Revenue in order to get a resale certificate there.
In conclusion, South Dakota doesn’t tax Social Security benefits, although it does levy a sales tax and a property tax. You can use a straightforward method to determine the sales tax owed on a purchase. In order to avoid paying sales tax on products or services that are being resold, South Dakota business owners may need to obtain a resale certificate.
You must get in touch with your state’s department of revenue or taxation and adhere to their application guidelines in order to receive a resale certificate. Providing information about your company, such as your tax identification number, and proving that you are an authorized reseller may be required during the process. After it has been authorized, you can utilize the resale certificate to avoid paying sales tax on the goods you want to sell again.
Sales tax, use tax, excise tax, corporate income tax, and property tax are just a few of the taxes that businesses in South Dakota are expected to pay. South Dakota, however, is one of the few US states without a state income tax, including one that applies to Social Security benefits.