South Dakota prepares for sales tax cut

April 3, 2023

PIERRE, S.D.–On July 1st, South Dakota’s tax rate will decrease from 4.5 percent to 4.2 percent. Governor Kristi Noem and the Department of Revenue are working diligently to account for the three-tenth percent sales tax decrease created by House Bill 1137.

In a statement, Governor Noem said, “We are excited to provide this tax relief for the people of South Dakota and will work to deliver a permanent tax cut in the future. South Dakotans will be paying lower taxes when many other states are raising theirs. I appreciate the Department of Revenue for working diligently to implement this relief.”

The state tax rates affected by the changes are:

Sales and use tax
Excise tax on farm machinery and farm attachment units
Amusement device tax; and
Motor vehicle gross receipts tax.