South Dakota State Income Tax
South Dakota is among that handful of states that don’t collect income taxes. However, if you are a resident of a state that does in fact collect income taxes and you accumulated income from South Dakota, you will most likely need to report that income to the state you do live in.
South Dakota implements a fairly low sales tax rate of 4% besides prescription drugs and like most states, municipalities can add their own additional sales tax which in South Dakota can be an extra 2.75%. Residents over the age of 65 and you have a yearly income under $10,250 as a single tax payer or $13,250 as a household will be eligible for the sales tax refund.
The state has a moderate gasoline excise tax at 24 cents per gallon which is the same for diesel fuel and the cigarette excise tax is $1.53 per pack.
Property taxes are assessed at approximately 85% of market value between counties. These property taxes are assessed and collected by local entities. There are various exemptions for property owners over a certain age and for those with disabilities. Those aren’t the only tax relief programs offered by South Dakota so you need to be sure to really do your research if you own property in this state.
There is no inheritance tax and the estate tax federal estate tax collection. If you’re wondering where to find all of the necessary tax forms that you’re going to need, you have a few options. You can refer to the South Dakota Department of Revenue’s website where all of the vital forms and supplemental information is available. The website will also have other contact information for anyone who needs it.
Or, instead of going out and trying to collect all of the physical papers you could make the leap to e-filing your tax returns this year. it’s the most efficient process for both sides of tax filing and it reduces the amount paper that we would otherwise waste every year.