Sioux Falls Sales Tax Guide 2025 (South Dakota)
Navigating sales tax compliance and understanding the implications of the gross receipts tax in Sioux Falls, South Dakota, can be challenging for businesses of all sizes. Understanding the local regulations, South Dakota sales tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance, including the sales tax registration and tax license process, and offer seamless integrations for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Sioux Falls for 2025.
Sioux Falls Sales Tax Rate (South Dakota)
As of February 2025, the total sales tax rate in Sioux Falls, South Dakota, is 6.2%, comprising a 4.2% state tax and a 2.0% city tax. South Dakota enacted its retail sales tax in 1935.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 4.20% |
| County Tax | 0.00% |
| City Tax | 2.00% |
| Special Tax | 0.00% |
| Combined Tax | 6.20% |
(Note: Sales tax rates are subject to change. Check the South Dakota Department of Revenue’s website for the latest updates.)
Sioux Falls Sales Tax Calculator (South Dakota)
As a business owner in Sioux Falls, South Dakota, correctly calculating sales tax is essential to comply with Sioux Falls sales tax law and avoid penalties. Let’s go through a step-by-step example to help you accurately apply sales tax to your sales transactions.
Step 1: Understand the Sales Tax Rate in Sioux Falls, SD
In Sioux Falls, the total sales tax rate is 6.2%, which includes:
- State Sales Tax: 4.2%
- City Sales Tax (Sioux Falls Municipal Tax): 2%
Step 2: Determine the Taxable Amount
Sales tax is applied to the total sales price of taxable goods and services. Let’s assume you own a electronics store and sell a laptop for $1,000.
Step 3: Calculate the Sales Tax
To calculate how much sales tax you need to collect, multiply the total sale amount by the Sioux Falls sales tax rate of 6.2% (0.062):
1,000 × 0.062 = 62
So, the sales tax on the laptop is $62.
Step 4: Determine the Total Amount to Charge the Customer
Now, add the sales tax to the original price of the laptop:
1,000 + 62 = 1,062
The total amount the customer pays at checkout is $1,062.
Additional Tips for Business Owners
- Confirm which items are taxable – some groceries, prescription drugs, and medical devices are exempt.
- Keep records of all sales transactions and tax collected for audits and reporting.
- If you sell online to customers outside South Dakota, check if you need to collect tax in other states.
- Remit sales tax on time to avoid penalties and interest from the South Dakota Department of Revenue.
FAQ on Sales Tax in Sioux Falls SD
What is the Sales Tax in Sioux Falls SD?
The total sales tax in Sioux Falls, SD, is 6.2%, which includes a 4.2% state tax and a 2% city tax.
How Much is Sales Tax in Sioux Falls SD?
Sales tax in Sioux Falls is 6.2% on most retail sales, covering both state and local tax components.
What is the Sales Tax Rate in Sioux Falls SD?
The combined sales tax rate in Sioux Falls is 6.2%, with 4.2% state sales tax and 2% municipal sales tax.
Sioux Falls Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Sioux Falls?
Sales tax collection in Sioux Falls is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Sioux Falls.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in South Dakota.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Sioux Falls?
In Sioux Falls, South Dakota, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Raw Materials, Medical Devices, General Occasional Sales, Motor Vehicles Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Pollution Control Equipment, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Sioux Falls
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://dor.sd.gov/businesses/taxes/sales-use-tax/.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://dor.sd.gov/businesses/taxes/sales-use-tax/ by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Sioux Falls often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Sioux Falls?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in South Dakota
Looking for sales tax rates and compliance details for other cities in South Dakota? Check out our comprehensive table of sales tax information for cities across the state in the table below
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