Does South Dakota Have State Income Tax?

South Dakota does not impose a state personal income tax, meaning you won’t receive a South Dakota tax refund, and there is no South Dakota refund status to track for individuals. Learn more about other South Dakota state taxes below.

State: South Dakota
Tax Information Website: Learn more about South Dakota taxes.
Phone Number: 1-800-829-9188
Other Contact Info: Contact the South Dakota Department of Revenue.

FAQs

Does South Dakota have a state income tax?

No, South Dakota is one of nine states that do not have an income tax as of tax year 2025.

Does South Dakota tax Social Security?

No, because South Dakota doesn’t have an income tax, it also does not tax Social Security or any other form of retirement income. Federal taxes on Social Security may still apply.

Does South Dakota tax retirement income?

South Dakota doesn’t tax retirement income. This means all retirement income, including pension payments, Social Security benefits, and withdrawals from 401(k) plans and IRAs, is free from state taxes.

Do you need to file a tax return in South Dakota?

You don’t need to file a personal South Dakota state income tax return, since the state does not have an income tax. However, many residents will still need to file a federal tax return if their income meets the IRS tax filing threshold (and may be able to claim a federal refund).

However, if you purchased items from unlicensed vendors, you may need to file and pay use tax. For example, say you made an online purchase from an out-of-state retailer that is not licensed to collect South Dakota state and local taxes. In this situation, individual taxpayers are responsible for remitting the use tax. Learn more about South Dakota use tax.

Does South Dakota have a corporate income tax?

South Dakota does not have a state corporate income tax either. However, businesses may have to file state-level taxes depending on the industry and their business activity. Learn more about South Dakota business taxes.

Does South Dakota have a sales tax?

Yes, South Dakota has a state sales and use tax rate of 4.2%. Many municipalities also have their own local sales tax, so the combined total sales tax rate varies by location.

Is South Dakota a tax-free state?

Although South Dakota doesn’t tax income, it’s not a tax-free state. South Dakota has the following taxes for individuals:

• Alcohol
• Cigarette & Tobacco
• Motor Fuel
• Property Tax
• Sales & Use Tax

South Dakota businesses may owe various kinds of taxes as well. Learn more about South Dakota business taxes.

The bottom line

There are no personal South Dakota state refunds because South Dakota doesn’t have a state income tax. Residents don’t have to file a personal state return for this reason. However, you may need to file a federal tax return, and depending on your situation, you may owe other South Dakota taxes, such as sales and use tax or property tax.

If you need help with your federal tax preparation, TaxAct® can help you e-file quickly and confidently.

This article is for informational purposes only and not legal or financial advice.

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Meghen Ponder: Meghen Ponder is an editorial writer for TaxAct who specializes in writing content about finance and taxes. She enjoys decoding the intricacies of the tax world and helping others answer their tax questions.