South Dakota Use Tax Guide — Individual

Use Tax - Individual https://dor.sd.gov/ 1-800-829-9188
The purpose of this tax fact is to provide general guidelines to individuals on how to remit use tax July 2023 on products and services in South Dakota. It is not intended to answer all questions that may arise.

Text version of this table

What is Use Tax?	South Dakota Taxes and Rates
The South Dakota use tax is the counterpart of the South Dakota sales tax. The two taxes apply to the sale of the same products and services, have the same tax rates, and have similar laws. The difference is in how the taxes are applied. Use tax applies when state and applicable municipal sales tax has not been paid on products and services (including products and services transferred electronically) that are used or consumed in South Dakota. When is Use Tax Owed?	State Sales and Use Tax – Applies to all sales or purchases of taxable products and service.	4.2%
	Municipal Sales and Use Tax – Applies to all sales of products and services that are subject to the state sales tax or use tax if the purchaser receives or uses the product or service in a municipality that imposes a sales tax or use tax.	1 to 2%
	Contractor’s Excise Tax — Imposed on the gross receipts of all prime contractors engaged in construction services or realty improvement projects in South Dakota. The gross receipts include the tax collected from the consumer.	2%

Use tax is owed if:

sales tax was not paid at the time of purchase; or

# South Dakota Taxes and Rates

State Sales and Use Tax - Applies to all sales or
4.2% purchases of taxable products and service.
Municipal Sales and Use Tax - Applies to all sales of products and services that are subject to the state sales tax or use tax if the purchaser receives 1 to 2% or uses the product or service in a municipality that imposes a sales tax or use tax.
Contractor's Excise Tax - Imposed on the gross receipts of all prime contractors engaged in construction services or realty improvement 2% projects in South Dakota. The gross receipts include the tax collected from the consumer.
Examples of Use Taxable
Products and Services

the sales tax paid to another state was less than South Dakota's

Products

Pet Supplies sales tax rate. The difference is owed when the product enters or the service is used in South Dakota.

 Credit is given for purchases with tax due and paid in

Books
Farm Equipment
Jewelry
Software for
Computers Computer/Cell

Phones, etc.

Household Goods another state. A receipt or invoice showing the amount of tax paid must be kept as documentation.
Machinery

Services

Subscriptions
Online Games

 If use tax is due, click here to submit a use tax payment online.

Online Photo Orders
Online News/Sports
Digital Books, Music,
Computer etc.

Consulting
Use tax is due on the full purchase price, including delivery charges, or other fees, when the product is received or removed from

Music
Computer
Clothing

Diagnostics inventory. Applicable municipal sales and use tax rates are based on the location the product or service is received.

Tools
Legal Services
Antiques/
Tax Preparation

Collectibles

People/Business/
The purchaser or consumer is responsible for reporting and remitting the use tax.
Sporting Goods

Ancestry Searches

Click here to find the sales and use tax rate for a given address.

Contact Us
If you have any questions, please contact the South Dakota Department of Revenue.
Call toll-free: 1-800-829-9188
Business Tax Division Email: bustax@state.sd.us
Website: http://dor.sd.gov/
Mailing address and office location:
445 East Capitol Ave
Pierre, SD 57501
1 | July 2023 | South Dakota Department of Revenue | Use Tax - Individual

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