Taxes & Incentives
Business friendly

Taxes & Incentives

South Dakota is business friendly when it comes to tax climate. South Dakota ranks 2nd in the nation on the Tax Foundation’s 2024 State Business Tax Index. With no corporate or personal income tax, no inventory tax, no inheritance tax, no personal property tax, and low sales tax, you can’t get much friendlier than that. Businesses also benefit from affordable property and unemployment insurance taxes.

Tax table

See how South Dakota compares to other states in the region

 

South Dakota Iowa Minnesota Nebraska North Dakota Wyoming
Sales Tax 4.2% 6.0% 6.88% 5.5% 5.0% 4.0%
Individual Income Tax 0.0% 6.00% 9.85% 6.64% 2.9% 0.0%
Corporate Income Tax 0.0% 8.4% 9.8% 7.25% 4.31% 0.0%

2024 State Business Tax Index Ranks

See how South Dakota ranks nationally

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Overall Rank Corporate Tax Rank Individual Income Tax Rank Sales Tax Rank Property Tax Rank Unemployment Insurance Tax Rank
Alabama 39 19 33 50 17 15
Alaska 3 26 1 5 27 48
Arizona 14 22 9 41 11 10
Arkansas 38 28 37 44 24 24
California 48 45 49 47 22 30
Colorado 27 7 13 40 38 44
Connecticut 47 30 46 23 50 26
Delaware 21 50 43 2 6 1
Florida 4 11 1 19 13 4
Georgia 32 9 35 28 28 34
Hawaii 42 18 47 26 31 41
Idaho 16 27 17 11 2 47
Illinois 37 43 14 39 45 42
Indiana 10 12 16 18 3 25
Iowa 33 29 22 15 41 32
Kansas 26 21 27 29 18 16
Kentucky 18 15 18 13 23 46
Louisiana 40 34 29 48 21 13
Maine 34 35 26 8 46 29
Maryland 45 33 45 34 42 43
Massachusetts 46 36 44 14 47 50
Michigan 11 20 12 12 26 7
Minnesota 44 47 42 31 32 31
Mississippi 20 8 19 25 37 5
Missouri 12 3 20 30 9 3
Montana 5 23 28 3 19 22
Nebraska 30 31 32 9 40 9
Nevada 7 25 5 45 4 45
New Hampshire 6 44 10 1 43 40
New Jersey 50 48 48 43 44 37
New Mexico 23 13 36 35 1 11
New York 49 24 50 42 49 39
North Carolina 9 5 15 20 12 6
North Dakota 17 10 21 32 7 14
Ohio 36 39 40 36 5 12
Oklahoma 19 4 24 38 15 2
Oregon 28 49 41 4 20 38
Pennsylvania 31 41 23 16 14 21
Rhode Island 41 40 31 22 35 49
South Carolina 29 6 30 33 36 27
South Dakota 2 1 1 27 30 35
Tennessee 15 42 6 46 33 20
Texas 13 46 7 37 39 8
Utah 8 14 11 21 8 17
Vermont 43 38 39 17 48 18
Virginia 25 16 34 10 29 36
Washington 35 37 8 49 25 19
West Virginia 22 17 25 24 10 33
Wisconsin 24 32 38 6 16 28
Wyoming 1 1 1 7 34 23
District of Columbia 48 30 48 38 50 38