The formulas
- Sales tax = sale x (4.2% + local rate)
- Nexus when counted sales are more than $100,000 in the previous or current calendar year
How it works
Figures current as of November 2026.
The state rate is 4.2 percent from July 1, 2023 through June 30, 2027, when the reduction sunsets. The tool multiplies the sale amount by the statewide base rate plus the local rate you enter (municipal sales tax for the delivery address) and shows the state and local parts separately. The local rate depends on where the goods are delivered.
A seller with no physical presence in South Dakota must register and collect once it has more than $100,000 of gross sales into South Dakota in the previous or current calendar year. The 200-transaction test was removed effective July 1, 2023.
A seller with a physical presence in South Dakota, such as staff, an office or inventory, must collect regardless of the threshold. The tool does not decide whether a product is taxable or exempt; enter the taxable price.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the South Dakota sales tax rate?
The state rate is 4.2 percent from July 1, 2023 through June 30, 2027, when the reduction sunsets. Local rates are added on top by delivery address.
What is the South Dakota economic nexus threshold?
More than $100,000 of gross sales into South Dakota in the previous or current calendar year.
Did South Dakota change its threshold recently?
The 200-transaction test was removed effective July 1, 2023.
Sources
- South Dakota DOR, Sales & Use Tax
- South Dakota DOR, 2023 Legislative Updates
- South Dakota DOR, Remote Seller Bulletin
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.