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South Dakota Taxes

South Dakota Income Taxes

South Dakota business climate is one of the best in the country. Not only is South Dakota one of nine states with no income tax, they also have no inheritance tax or estate tax. South Dakota also has one of the strongest asset protection trusts structures in the county, making is a great state for taxes.

State Income Taxes in South Dakota

The state of South Dakota does not have any individual income tax, one of only 9 states in the country.

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 and Property Taxes in South Dakota

Sales Taxes – 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 – 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

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