South Dakota Tax Overview
South Dakota has no personal income tax and no corporate income tax, funding government through sales tax (4.5%) and property taxes. The state is known for its favorable trust laws and has become a major destination for trust administration. South Dakota also has a relatively low cost of living and no estate or inheritance tax.
South Dakota Tax Quick Facts (2026)
| Income Tax | None |
| Sales Tax (State) | 4.50% |
| Property Tax (Avg Effective) | 1.12% |
| Median Household Income | $69,457 |
| Capital | Pierre |
| Population | 0.9 million |
Frequently Asked Questions About South Dakota Taxes
Does South Dakota have a state income tax?+
No, South Dakota does not impose a state income tax on personal income. It is one of nine US states with no income tax.
What is the property tax rate in South Dakota?+
The average effective property tax rate in South Dakota is approximately 1.12% of assessed home value. On a $300,000 home, that is about $3,360 per year.
What is the sales tax rate in South Dakota?+
The state sales tax rate in South Dakota is 4.50%. Local jurisdictions may add additional sales tax.
What is the median household income in South Dakota?+
The median household income in South Dakota is approximately $69,457 per year.
How does South Dakota's tax burden compare to other states?+
South Dakota's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.