South Dakota Taxes

This is a brief summary of the taxation structure and the taxes levied on the citizens of South Dakota.

South Dakota Income Tax

  • This is the most salient and notable features of the tax structure in South Dakota – personal income tax is not collected in the state of South Dakota.
  • More information and data can be obtained from the official website of the South Dakota Department of Revenue and Regulations.

South Dakota Sales Tax

  • The rate of sales tax which is levied on all sales within the territory of South Dakota is 4%.
  • In addition to the above mentioned tax, there can also be use taxes and municipal sales taxes.
  • Certain state taxes are collected by the Department of Revenue Special Tax Division. Some of these taxes are levied on cigarette excise, ore, bank franchise, coin-operated Laundromats, gaming and alcoholic drinks.
  • There are certain refunds available to eligible taxpayers for sales tax payments which are made on food.
  • The taxpayers who qualify for this refund can apply online for it.

South Dakota Property Tax

  • School systems, municipalities, counties and other local government units get their main sources from property and personal tax.
  • Administration for this is done at a local level. Tax collection is not done by the state revenue department but it however conducts central assessments of large companies.
  • There is a possibility that property owners will be taxed more than other agencies such as cities, counties, townships, school districts, water districts and sometimes sanitary, sewer and fire districts.
  • The determination of tax liability is done by assessors. This is applicable to all districts except school districts where a capping has been applied.
  • There are several tax relief programs offered by the state for helping the disabled and the elderly.
  • Appeals can be made by taxpayers on tax issues to the County Board of Equalization.
  • Since 30 June 2001, inheritance tax was repealed in the state of South Dakota.
  • As a result of phasing out of federal estate tax, estate tax has not been collected in South Dakota since 2005.
  • There is no tax assessment done in South Dakota on “intangible” personal property.

Where to Mail FEDERAL IRS Tax Forms within South Dakota:

IRS Form If you ARE NOT enclosing a payment, use this address: If you ARE enclosing payment, use this address:
1040: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0002
Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
1040A: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0015
Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
1040EZ: Department of the Treasury
Internal Revenue Service
Fresno, CA  93888-0014
Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501