Standard rate
The standard sales tax rate in South Dakota for 2024 is 4.5%.
Who is obliged to register sales tax in South Dakota
Any business that has products or services physically present in South Dakota or has met the threshold for sales should acquire a sales tax license.
Threshold
- $100,000.
South Dakota has eliminated the 200-transaction threshold from its economic nexus requirement for sales tax, effective July 1, 2023.
Marketplace thresholds by state
The special rules are applicable to the SAAS business.
Software as Service Tax Thresholds by state.
Online Marketplaces
The marketplace will pay sales tax if the threshold is met. If the market pays the sales tax, the seller will no longer have to pay the tax for sales through that marketplace.
Registration procedure for South Dakota sales tax
With the “Tax License Application” online service, you can apply for a tax license.
When is the due date for sales tax payments and filing?
For example, for a December 31st tax return submission date, the deadline is January 20th.
Please make sure all payments are sent by the 25th day of the following month.
Paper returns must be filed by the 20th of the month following the reporting period and paid.
Penalty and interest
A penalty of 10% of the tax liability is assessed if a return is not received within 30 days following the month the return is due. The minimum penalty is $10 and is assessed even if the tax is zero.
Additional fees are charged every month for any taxes owed. The first month’s fees cannot be less than $5.
South Dakota Sales Tax Holiday
South Dakota does not currently have any sales tax holidays.
South Dakota Sales Tax Nexus
- Physical Nexus: A physical presence like a store or office creates Nexus.
- Economic Nexus: South Dakota’s threshold is $100,000 in sales or 200 transactions annually, requiring businesses to collect and remit sales tax if they meet these criteria.