What Is Vehicle Sales Tax in South Dakota?

Sales Tax in South Dakota

  • The sales tax in South Dakota is 4% on all vehicles. This includes the state sales tax rate. Local taxes may also apply up to 2%.

  • South Dakota collects a 4% state sales tax rate on all vehicle purchases. Additional fees may also apply like registration, title, and plate fees.

  • Trade-ins and rebates are not exempt from sales tax in South Dakota. South Dakota taxes trade-ins at the full 4% sales tax rate.

  • Some goods exempt from sales tax in South Dakota include prescription medication, gasoline, and groceries. South Dakota taxes most services.

  • South Dakota requires front license plates. South Dakota first required residents to register vehicles in 1905.

  • To calculate South Dakota car sales tax, multiply the car price by 4%. This is the sales tax amount to pay along with the car’s price for the total cost.

  • Sixteen other states tax groceries at a lower rate.

  • The average total tax rate in South Dakota is 5.814%. Local taxes can go up to 3.5% for a total of 7.5%.

  • Whether a car is new or used, you pay 4% sales tax in South Dakota. There is no difference in sales tax for private party or dealer purchases.

  • How much does it cost to transfer a title in South Dakota?

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