South Dakota Sales Tax Calculator 2026: 4.2% + Local Rates

South Dakota Sales Tax Calculator 2026

South Dakota charges a 4.2% state sales tax, cut from 4.5% in 2023, and most cities add a municipal tax, usually up to 2%, so a typical city rate is 6.2%. The average combined rate is 6.11%. South Dakota is one of the few states that taxes groceries at the full rate, and its tax also reaches most services. Prescription drugs are exempt. Under current law the state rate returns to 4.5% on 1 July 2027. Enter your city rate below to add or remove the tax.

By AwaisLast reviewed October 28, 2026

South Dakota sales tax at a glance

South Dakota sales tax rules
Type of tax	Sales and use tax
State rate	4.2%
Local rates	Average 1.91%, highest 4.50%
Average combined rate	6.11%
Groceries	Taxed (full rate)Groceries are taxed at the full 4.2% state rate plus municipal tax. Only SNAP and WIC purchases are exempt.
Prescription drugs	ExemptPrescription drugs are exempt. Over-the-counter drugs are taxable unless prescribed.
Clothing	TaxedClothing is taxed like other retail sales. South Dakota has no sales tax holiday.

Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the South Dakota Department of Revenue sales tax rate lookup.

Worked examples

$150 of groceries in Sioux Falls (6.2%)

$150 of groceries in Sioux Falls (6.2%)
Rate	4.2% grocery + 2% local = 6.2%
Price before tax	$150.00
Sales tax	$9.30
Total	$159.30

Working: $150.00 × 6.2% = $9.30. Groceries pay the same 4.2% state rate and 2% city rate as other goods. In most states this bill would be tax-free.

Working back from a $106.20 receipt at 6.2%

Working back from a $106.20 receipt at 6.2%
Rate	4.2% state + 2% local = 6.2%
Price before tax	$100.00
Sales tax	$6.20
Total	$106.20

Working back: $106.20 ÷ 1.062 = $100.00, so the tax was $6.20. Divide by 1.062 to get the $100 price before tax. After 1 July 2027 the state part is scheduled to rise to 4.5%.

The 4.2% rate and its 2027 sunset

A 2023 law lowered the state sales tax from 4.5% to 4.2%, but only temporarily: under current law it goes back to 4.5% on 1 July 2027. A 2026 bill to make 4.2% permanent stalled. Other 2026 laws direct revenue from the 2027 rate toward property tax relief and allow counties to add up to 0.5% sales tax for property tax relief, starting no earlier than 2027. Check the Department of Revenue before relying on the rate for purchases after mid-2027.

Groceries and services are taxed

South Dakota taxes food for home consumption at the full state and municipal rate; only purchases made with SNAP or WIC benefits are exempt. Efforts to repeal the grocery tax have not become law. The sales tax also applies to most services, a much broader base than in most states. Prescription drugs are exempt, while over-the-counter medicines are taxable unless prescribed. Use the Department of Revenue rate lookup for your city's rate.

South Dakota vs. neighboring states

South Dakota sales tax compared with neighboring states
State	State rate	Avg. combined	Groceries
South Dakota	4.2%	6.11%	Taxed (full rate)
North Dakota	5%	7.09%	Exempt
Minnesota	6.875%	8.14%	Exempt
Iowa	6%	6.94%	Exempt
Nebraska	5.5%	6.98%	Exempt
Wyoming	4%	5.39%	Exempt
Montana	0%	0.00%	No sales tax

Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.

Frequently asked questions

Are groceries taxed in South Dakota?

Yes. South Dakota taxes groceries at the full 4.2% state rate plus the municipal rate. Only purchases made with SNAP or WIC benefits are exempt.

Is the South Dakota sales tax going back to 4.5%?

Under current law, yes: the temporary 4.2% rate ends after 30 June 2027 and the state rate returns to 4.5% on 1 July 2027. A 2026 bill to keep 4.2% stalled.

Are services taxed in South Dakota?

Yes. South Dakota applies sales tax to most services as well as goods, so repairs, many personal services and professional services usually carry tax.

What is the sales tax in Sioux Falls?

Sioux Falls adds a 2% municipal tax to the 4.2% state rate, for 6.2% on most purchases. Use the Department of Revenue lookup for other cities.

What is the sales tax rate in South Dakota in 2026?

The statewide rate is 4.2%. Local taxes add 1.91% on average and up to 4.50%, so the average combined rate is 6.11% (Tax Foundation, rates as of 1 July 2026).

How do I calculate South Dakota sales tax on a purchase?

Add the state and local rates, then multiply the price by that rate as a decimal. At 6.11% (the state rate plus the average local rate), tax on $100 is 100 × 0.0611 = $6.11, for a total of $106.11. To go back from a receipt total, divide it by 1 plus the rate.