STATE RANKING #3

Quick facts: 

-South Dakota is one of only 8 states that has no state income tax.

-South Dakota has one of the strongest asset protection trust structures in the country.

None

State
Income
Tax

NONE

state
business
tax

averagE

Property
Taxes

6.40%

Sales
Tax (average)

State Income Taxes in South Dakota

The state of South Dakota does not have individual income tax, yay! One of only 8 states in the union.

State Business Taxes in South Dakota

The state of South Dakota is one of only 2 states that does not have a Corporate Business tax (the other one being Wyoming).

Sales Taxes in South Dakota

Like most states, South Dakota has both local and state sales tax. The state rate is 4.50% the average local rate is 1.90% (bringing the total average sales tax rate for South Dakota to 6.40%).

Another thing to be aware of is that South Dakota uses a broad base for charging sales tax. Like states such as HawaiiNew Mexico, and North Dakota, they charge sales tax on many business-to-business personal services.

Property Taxes in South Dakota

The average property tax rate for residential property in the state of South Dakota is 1.22%, making it a bit above the average for the country (0.93%).

Unemployment Taxes in South Dakota

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three.

  • Wage Base – South Dakota has a wage base of $15,000 for 2020
  • UI Rates – range from 0.15% to 10.00%, which is a high upper limit.
  • Schedules – South Dakota has multiple schedules regarding UI taxes

South Dakota Business Entities - LLCs

South Dakota has an average cost to setting up an LLC. Here are some important facts:

  • Annual fee is $50 per year
  • First year you file there is an additional setup fee of $150.00
  • Secretary of State of South Dakota website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

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