South Dakota Sales Tax: Everything You Need to Know

What is South Dakota sales tax?
4.5% What is South Dakota’s Sales Tax Rate? The South Dakota sales tax and use tax rates are 4.5%.
Read more on dor.sd.gov

A crucial component of any state’s revenue-generating system is the sales tax. It is a charge levied on the purchase or rental of goods and services. Both the state and the municipal governments in South Dakota levy a sales tax. This article will provide all the information you require regarding the South Dakota sales tax.

What is the South Dakota sales tax rate?

In South Dakota, the current sales tax rate is 4.5 percent. But other localities might levy extra sales taxes, which would raise the overall rate. For instance, Rapid City’s additional 2% sales tax makes the city’s overall sales tax rate 6.5%. On the other side, Sioux Falls has an additional 2% sales tax, making the city’s overall sales tax rate 6.5%. What in South Dakota is exempt from paying sales tax?

In South Dakota, not all goods and services are subject to sales tax. Prescription medicines, groceries, and medical supplies are among the things that are thought to be free from sales tax. Additionally, some services—such as those that repair and maintain machines and vehicles—are free from paying sales tax. What is the Grand Forks, North Dakota sales tax?

Grand Forks is situated in Minnesota, just outside of North Dakota. Grand Forks, North Dakota currently has a sales tax rate of 7.75%, which is made up of a 5% state sales tax and a 2.75% municipal sales tax.

How is South Dakota’s sales tax collected?

Sales tax must be collected and sent to the state by businesses in South Dakota. Businesses can collect sales tax by having a sales tax permit issued by the state. Depending on the amount of sales, companies must submit sales tax returns to the South Dakota Department of Revenue on a monthly, quarterly, or annual basis.

In conclusion, South Dakota has a 4.5% state sales tax in addition to any municipal taxes that may be levied. Businesses are in charge of obtaining and remitting sales tax to the state. Some items and services are exempt from sales tax. It’s crucial to comprehend South Dakota’s sales tax regulations if you’re doing business there in order to stay out of trouble with the law.

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