South Dakota: Are groceries taxed?
South Dakota taxes groceries at its full 4.2% state sales tax rate. Only SNAP and WIC purchases are exempt.
South Dakota's sales tax applies to all retail sales of goods unless a law exempts them, and state law has no general exemption for groceries. The only food exemptions in the sales tax chapter cover purchases made with food stamps (SNAP) and WIC benefits. The state rate is 4.2% now and is scheduled to return to 4.5% on July 1, 2027.
What the law says
There is hereby imposed a tax upon the privilege of engaging in business as a retailer, a tax of four and two-tenths percent upon the gross receipts of all sales of tangible personal property consisting of goods, wares, or merchandise, except as otherwise provided in this chapter, sold at retail in the state to consumers or users.
Sources
- SDCL 10-45-2 Official · sdlegislature.gov
- SDCL 10-45-14.7 (food stamp purchases exempt) Official · sdlegislature.gov
- SDCL 10-45-14.8 (WIC purchases exempt) Official · sdlegislature.gov
- South Dakota Department of Revenue: Sales and Use Tax Official · dor.sd.gov
Confirm with the state
- Agency
- South Dakota Department of Revenue
- Website
- dor.sd.gov
How bordering states compare
- Iowa Groceries exemptIowa exempts most food and food ingredients from its state sales tax.
- Minnesota Groceries exemptMinnesota exempts grocery food from its 6.875% state sales tax; candy, soft drinks and prepared food are taxed.
- Montana No state sales taxMontana has no general state sales tax, so groceries are not taxed by the state.
- Nebraska Groceries exemptNebraska exempts food and food ingredients from its 5.5% state sales tax, except prepared food and vending machine food.
- North Dakota Groceries exemptNorth Dakota exempts food and food ingredients bought for human consumption from its 5% state sales tax.
- Wyoming Groceries exemptWyoming exempts food for home consumption from its 4% state sales tax. Prepared food and alcohol are taxed.
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