South Dakota Taxes 2025
Complete tax guide and OBBBA calculator for SD residents
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South Dakota Tax Overview 2025
State Income Tax
0%
None rate structure
Combined Sales Tax
6.40%
State 4.50% + Local 1.90%
Avg Property Tax
1.31%
Above average property taxes
No State Income Tax!
South Dakota is one of only 9 states with no personal income tax. Combined with federal OBBBA deductions, SD residents enjoy significant tax advantages compared to residents of high-tax states.
💼 South Dakota Income Tax 2025
South Dakota has no state income tax.
South Dakota Income Tax Quick Facts
🛒 South Dakota Sales Tax 2025
South Dakota's combined average sales tax rate is 6.40%, which includes both state and local components. The state sales tax rate is 4.50%, while local jurisdictions add an average of 1.90%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 South Dakota Property Tax 2025
South Dakota's average effective property tax rate is 1.31%. Above average property taxes.
Property taxes in South Dakota are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $3,275 | $273 |
| $400,000 | $5,240 | $437 |
| $600,000 | $7,860 | $655 |
OBBBA Tax Benefits for South Dakota Residents
South Dakota residents get double benefits - no state income tax plus federal OBBBA deductions.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that South Dakota residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for SD Residents:
Calculate Your South Dakota Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a South Dakota resident.
Calculate My SavingsHow South Dakota Compares
| Tax Type | SD Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 0% | 5.1% | No Tax |
| Sales Tax | 6.40% | 7.12% | Below Avg |
| Property Tax | 1.31% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in South Dakota?
South Dakota has a none income tax with rates of 0%. South Dakota has no state income tax.
What is the sales tax in South Dakota?
The combined average sales tax rate in South Dakota is 6.40%. This includes the state rate of 4.50% plus an average local rate of 1.90%.
How do OBBBA deductions benefit South Dakota residents?
South Dakota residents get double benefits - no state income tax plus federal OBBBA deductions. South Dakota residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are South Dakota taxes due?
For tax year 2025, South Dakota state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.