Threshold rules for this state are being re-verified
At least one detail on this page could only be confirmed from a secondary source, or an official source was silent (for example, whether marketplace sales count toward your own threshold is not stated in the official sources we reviewed). Check the official source before you rely on it.
South Dakota Sales Tax Nexus: Economic Nexus Threshold (2026)
South Dakota's economic nexus threshold for remote sellers is $100,000 in sales, measured over the previous or current calendar year. The official guidance we reviewed does not say whether marketplace sales count toward South Dakota's threshold. Inventory or another physical presence in South Dakota generally creates nexus regardless of sales. The state rate is 4.2%, plus local taxes.
South Dakota sales tax nexus: key facts
| Sales threshold | $100,000 |
|---|---|
| Transaction threshold | None |
| Test | Sales only |
| What counts | More than $100,000 gross revenue from sales of tangible personal property, products transferred electronically, or services delivered into SD. Includes selling, renting or leasing (SDCL 10-64-2; DOR Remote Seller Bulletin) |
| Measurement period | Previous or current calendar year |
| Marketplace sales count toward your threshold? | Unclear (not stated in official sources reviewed) |
| Marketplace facilitator law | Yes: marketplaces generally collect on the sales they facilitate |
| State rate | 4.2% |
| Local sales taxes | Yes, in addition to the state rate |
| Current threshold effective | July 1, 2023 |
| Recent change | Yes, see the note below |
| Registration | Official registration page |
| Last researched | September 23, 2026 |
The state rate is the statewide state-level rate only. Local and district rates are extra where they apply.
Recent change
SB 30 (2023) removed the 200-transaction test effective 7/1/2023. HB 1137 (2023) cut the state rate from 4.5% to 4.2% effective 7/1/2023, with a sunset repealing the cut June 30, 2027, so the rate returns to 4.5% on 7/1/2027. 2026 bills to make 4.2% permanent (e.g., SB 195) failed, per news reports (secondary). In 2025, SB 43 changed registration timing from 'immediately' to the first day of the month that starts at least 30 days after the threshold is met.
Quick check: do you have nexus in South Dakota?
Enter your South Dakota sales to see whether you may have nexus.
Selling into several states? Use the full Sales Tax Nexus Checker. Your figures stay in your browser.
What to do after crossing the South Dakota threshold
When it starts:
- Remote sellers must register by the first day of the month that starts at least 30 days after the threshold is met. DOR's example: $100,000 exceeded on May 28, so collection starts July 1.
- Confirm the numbers. Check your South Dakota sales against the measure and period in the key facts above.
- Register before you collect. Use South Dakota's official registration page. Collecting a state's tax without a registration is generally not allowed.
- Collect and file. Charge South Dakota sales tax (plus any local taxes that apply at the delivery address) on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
- Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.
Physical presence and inventory in South Dakota
Any business with a physical presence in SD must be licensed regardless of sales volume, and the $100,000 threshold does not apply to it. Inventory in SD, including FBA or 3PL warehouses, generally creates physical presence. DOR treats meal-delivery drivers as creating physical presence for delivery platforms.
Marketplace sellers in South Dakota
Do marketplace sales count toward your own threshold? Unclear (not stated in official sources reviewed).
Marketplace providers must license and remit on all facilitated SD sales if they are remote sellers themselves, facilitate for at least one seller that meets the criteria, or facilitate for two or more sellers whose combined sales meet the criteria. SD DOR guidance does not say whether a seller's marketplace-facilitated sales count toward the seller's own $100,000. SDCL 10-64-2 measures the seller's 'gross revenue' from sales delivered into SD, which reads as including them, and aggregators say they count. Sales through a licensed marketplace that is remitting are not the seller's responsibility to remit.
Other things to know about South Dakota
- Full SSUTA member. Registration is available through the Streamlined Sales Tax Registration System or SD's online Tax License Application.
- State and municipal sales taxes are reported on the same return. Municipal sales/use tax rates are generally 1%-2% (up to 4% in some cases), plus a municipal gross receipts tax on certain hospitality sales.
- State rate is 4.2% through June 30, 2027 and is scheduled to return to 4.5% on July 1, 2027 under the HB 1137 (2023) sunset.
Frequently asked questions
What is the South Dakota economic nexus threshold?
$100,000 in sales, measured over the previous or current calendar year. What counts: More than $100,000 gross revenue from sales of tangible personal property, products transferred electronically, or services delivered into SD. Includes selling, renting or leasing (SDCL 10-64-2; DOR Remote Seller Bulletin).
Do marketplace sales count toward the South Dakota threshold?
Unclear (not stated in official sources reviewed). Marketplace providers must license and remit on all facilitated SD sales if they are remote sellers themselves, facilitate for at least one seller that meets the criteria, or facilitate for two or more sellers whose combined sales meet the criteria. SD DOR guidance does not say whether a seller's marketplace-facilitated sales count toward the seller's own $100,000. SDCL 10-64-2 measures the seller's 'gross revenue' from sales delivered into SD, which reads as including them, and aggregators say they count. Sales through a licensed marketplace that is remitting are not the seller's responsibility to remit.
Does FBA or 3PL inventory in South Dakota create nexus?
Any business with a physical presence in SD must be licensed regardless of sales volume, and the $100,000 threshold does not apply to it. Inventory in SD, including FBA or 3PL warehouses, generally creates physical presence. DOR treats meal-delivery drivers as creating physical presence for delivery platforms.
When do I have to start collecting South Dakota sales tax?
Remote sellers must register by the first day of the month that starts at least 30 days after the threshold is met. DOR's example: $100,000 exceeded on May 28, so collection starts July 1.
Registration: official registration page.
Does South Dakota have a transaction-count test?
No. South Dakota uses only the dollar threshold. SB 30 (2023) removed the 200-transaction test effective 7/1/2023.
Crossed the South Dakota threshold, or not sure? A professional can confirm it and handle registration.
Nexus Study + Registration + Cleanup
Fixed price, quoted before any work starts
- State-by-state review of your sales and inventory locations
- Registration in states where you have nexus
- Plan for any past-due periods (including voluntary disclosure where appropriate)
- Ongoing sales tax filing option
Disclaimer: This page provides general information for educational purposes and is not tax, legal or accounting advice. State rules change, and whether you have nexus can depend on facts not covered here. Confirm with South Dakota's official guidance or a qualified professional before acting. RAHA Financials is not affiliated with any state tax agency.
Sources
- Primary official source: https://dor.sd.gov/media/yh0n3oc2/remote-seller-bulletin.pdf
- dor.sd.gov: https://dor.sd.gov/businesses/taxes/sales-use-tax/
- dor.sd.gov: https://dor.sd.gov/businesses/taxes/sales-use-tax/2023-legislative-updates
- dor.sd.gov: https://dor.sd.gov/media/avyep2sr/2026-7_sales-use-tax-guide.pdf
- dor.sd.gov: https://dor.sd.gov/media/e0ajtwlg/marketplace-provider-bulletin.pdf
- sdlegislature.gov: https://sdlegislature.gov/api/Statutes/10-64-2.html
