South Dakota (SD) Tax Rates — 2026

Income Tax None

Sales Tax 6.1%

Property Tax 1.14%

Income Tax

No State Income Tax

Sales Tax

State Rate4.2%

Avg Local Rate1.9%

Combined Rate6.1%

Groceries: Taxed

-0.47% vs national avg

Property Tax

Effective Rate1.14%

Median Annual Tax$2,163

+0.07% vs national avg (1.07%)

Retirement Income Tax

Social SecurityNO

PensionsEXEMPT

401(k) / IRANO

Estate & Inheritance Tax

Has Estate Tax: NO

Corporate Tax

Corporate Income Tax: None

Additional Notes

No state income tax and no corporate income tax. Groceries are subject to the full sales tax rate. South Dakota is known for favorable trust and estate planning laws.

Compare with another state:

No Income Tax States
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Best for Retirees

Sources: South Dakota Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.