South Dakota Sales Tax: A Guide for Invoicing

SD state sales tax is 4.20% and applies to most services. Add it automatically to every invoice.

State rate
4.20%
Services taxable
Yes
Top metros
2
Sample local rate
—

South Dakota state sales tax rate

The base state sales tax rate in South Dakota is 4.20%. State 4.2%; applies broadly to services. Combined commonly 6-7%.

Average local tax adds approximately 1.91%, bringing the typical combined rate to about 6.11%.

Do services need sales tax in South Dakota?

Yes — most services are subject to sales tax in South Dakota. Specific exemptions exist for professional services, healthcare, and non-discretionary services. Always confirm with the South Dakota Department of Revenue or your CPA for your specific industry.

Common exemptions

  • Few exemptions — South Dakota taxes most services
State rate
4.20%
Services
Taxable
Avg local add
1.91%

Top SD metros