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 2021 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.

Recent Accolades
- Sioux Falls is No. 4 Best Place for Young Professionals – Smart Asset
- Tax Foundation Best States – SD No. 2 10/21/2020 – Tax Foundation
- South Dakota Economy Second Least Impacted by COVID-19 in First Quarter 07/07/2020 – BEA
Tax table
See how South Dakota compares to other states in the region
South Dakota | Iowa | Minnesota | Nebraska | North Dakota | Wyoming | |
---|---|---|---|---|---|---|
Sales Tax | 4.5% | 6.0% | 6.875% | 5.5% | 5.0% | 4.0% |
Individual Income Tax | 0.0% | 8.98% | 9.85% | 6.84% | 2.9% | 0.0% |
Corporate Income Tax | 0.0% | 12.0% | 9.8% | 7.81% | 4.31% | 0.0% |
Tax Burden | 7.28% | 9.49% | 10.25% | 9.21% | 7.83% | 7.51% |