Understanding South Dakota’s Sales Tax: What You Need to Know

The government levies a levy known as a sales tax on the purchase of goods and services. People pay it as a form of consumption tax when they make purchases of products or services. Like many other US states, South Dakota levies a sales tax. In this post, we’ll go over what the South Dakota state sales tax is, what goods and services are subject to it, what services are exempt from it, and what the rate will be in 2021. What is the South Dakota State Sales Tax?

The majority of products and services sold in South Dakota are subject to a 4.5% state sales tax. The South Dakota Department of Revenue is in charge of collecting this tax, which is used to pay for public services and activities. City, county, and other local governments may levy additional local sales taxes on top of the state sales tax. Depending on the locality, South Dakota’s total sales tax rate ranges from 4.5% to 7.5%. What in South Dakota is subject to sales tax?

The South Dakota sales tax is applicable to the majority of products and services. In addition to specific services like housing, transportation, and theme park admissions, this also covers tangible personal property like clothing, furniture, and technology. However, some products and services—like food and prescription medications—are excluded from the sales tax. What Services are Sales Tax Exempt in South Dakota?

In South Dakota, several services are excluded from the sales tax. These include both professional services like accounting, law, and engineering as well as specialized personal services like pet grooming, haircuts, and massages. Additionally, the sales tax may not apply to all nonprofit institutions.

The state sales tax in South Dakota is 4.5%, as was already mentioned. However, cities, counties, and other local governments might levy further local sales taxes. Depending on the locality, South Dakota’s total sales tax rate ranges from 4.5% to 7.5%.

South Dakota does have a sales tax, while not having a state income tax. Additionally, local governments may levy property taxes. In contrast to other US states, South Dakota is renowned for having a comparatively light overall tax load.

In conclusion, everybody who lives or conducts business in South Dakota should be aware of the state’s sales tax. Although the majority of goods and services are subject to the sales tax, some products and services are exempt. Additionally, being aware of the local sales tax rate will help you plan and budget for any purchases you make.