Taxes in South Dakota: Income, Sales, and Property Tax Guide
Top Income Tax Rate
No Income Tax
Combined Sales Tax
6.1%
Avg Property Tax Rate
1.1%
Median Household Income
$69,457
How South Dakota Compares to National Average
IRS Statistics of Income Data
Average AGI
$54,000
Average Tax Liability
$6,800
Itemized Deduction Rate
23.0%
Avg SALT Deduction
$5,200
Avg Mortgage Interest Deduction
$8,200
Avg Charitable Deduction
$5,500
Source: IRS Statistics of Income (2022 tax year)
What This Means for You
South Dakota is one of the states that does not levy a state income tax. This can mean significant tax savings compared to high-tax states, though South Dakota may compensate through higher sales tax, property tax, or other fees. Consider the full tax picture when evaluating the cost of living.
Frequently Asked Questions
Does South Dakota have an income tax?
No, South Dakota does not have a state income tax.
What is the sales tax in South Dakota?
The combined state and local sales tax rate in South Dakota is approximately 6.1%.
How does South Dakota compare to other states?
Visit our state comparison page or use the Compare tool to see how South Dakota's tax burden compares to neighboring states and the national average.
Related Resources
Data sources: Tax Foundation (2024), IRS Statistics of Income (2022). TaxGrader is not a CPA, tax advisor, enrolled agent, or attorney. This content is for educational and informational purposes only.