South Dakota state sales and use tax rate returns from 4.2% to 4.5% on 1 July 2027
This page records one dated change. For the rules in United States as they stand today, see the United States guide →
- Jurisdiction
- United States (South Dakota)
- Tax
- Sales and use tax
- Change type
- Rate change
- Status
- Enacted
- Impact
- Plan ahead
- Effective
- 1 July 2027
- Authority
- South Dakota Department of Revenue
- Systems
- Tax engine, POS, E-commerce, Invoicing
- Verified
- Fetched from official source · medium confidence
Retailers and sellers collecting South Dakota state sales and use tax, and anyone maintaining South Dakota rate tables.
Schedule the 4.5% South Dakota state rate in the tax engine for transactions from 1 July 2027.
Tax enginePOSE-commerceInvoicing
South Dakota's state sales and use tax rate returns from 4.2% to 4.5% on 1 July 2027, when the temporary rate reduction sunsets on 30 June 2027. Senate Bill 245 (2026), as enrolled, directs three-tenths of a percentage point of the tax collected on or after 1 August 2027 under SDCL chapters 10-45, 10-46, 10-46E and 10-58 into a new homeowner property tax reduction fund instead of the general fund.
What changed in detail
South Dakota’s state sales and use tax rate returns from 4.2% to 4.5% on 1 July 2027, when the temporary rate reduction sunsets on 30 June 2027, according to the Department of Revenue’s Spring 2026 newsletter.
Senate Bill 245 (2026), as enrolled, directs three-tenths of a percentage point of the tax collected on or after 1 August 2027 under SDCL chapters 10-45, 10-46, 10-46E and 10-58 into a new homeowner property tax reduction fund instead of the general fund.
What it means
Schedule the 4.5% state rate in the tax engine for transactions from 1 July 2027. The destination of the revenue under SB 245 does not change the rate a seller collects. The dedication applies to tax collected on or after 1 August 2027, a month after the rate change.
Proof
The State sales tax holiday is sunsetting June 30, 2027, which means the sales tax is going to be returning to 4.5% effective July 1, 2027.
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