Car Sales Tax in South Dakota
The average sales tax rate on cars in South Dakota is 5.814%.
Written by Cassandra Hamilton
Reviewed by Kathleen Flear
The sales tax in South Dakota is very low at 4%. Vehicles sold in South Dakota are subject to this tax rate as well as any additional local taxes.
When you’re shopping for a car, it’s easy to forget about any cost beyond the sticker price. After all, that’s the cost that’s highlighted in big red letters! You could end up over your budget if you fail to consider all the costs of buying a car, though.
A significant added cost in the state of South Dakota is sales tax. But what are the rules and guidelines around sales tax, and are there any exceptions?
Here to answer all your South Dakota car sales tax questions is the
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. Then, we'll show you how to find cheap car insurance in South Dakota
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Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversHow much is the car sales tax rate in South Dakota?
All car sales in South Dakota are subject to the 4% statewide sales tax. Different areas have varying additional sales taxes as well. The highest sales tax is in Roslyn with a combined tax rate of 7.5%, and the lowest rate is in Buffalo and Shannon Counties with a combined rate of 4.5%. The average sales tax rate on vehicles across the state is 5.814%.
How are car trade-ins taxed in South Dakota?
Which parts of the car-buying process are taxed, though? To save money on buying a new car, many people opt to trade in their old vehicle and apply the credit to their new purchase. This is a great way to save on sticker price—and sales tax! Car sales tax does not apply to the trade-in value during a vehicle sale.
For example, we’ll pretend you’re buying a new
Subaru Forester
for $23,395. You’re saying goodbye to your old Nissan Rogue
and are receiving a trade-in credit of $3,500. You’ll only have to pay the combined sales tax average rate of 5.814% on $19,895 of the purchase.Don’t forget though—dealer rebates and incentives are still subject to sales tax. You will be taxed on the sales price before these discounts are applied.
MORE:
How to calculate sales tax on a car in South Dakota
You can use the
sales tax rate calculator
on the South Dakota Department of Revenue website to determine the total sales tax based on the dealership’s address. From there, you can apply that percentage to your dream vehicle’s price to get a sense of the total purchase price.Key Takeaway To get the total sales tax for your car, you’ll need to combine the statewide rate of 4% with whatever the dealership’s local or county tax rate is.
Exemptions from South Dakota sales tax
South Dakota offers a lot of exemptions to its vehicle sales tax. Some exceptions include:
- Vehicles acquired by inheritance
- Vehicles transferred between spouses, between parents and children, and between siblings
- Vehicle given to satisfy a debt
How to estimate South Dakota sales tax, title, and registration fees
The best way to shop for a car is by getting informed about all the costs you can expect. Sales tax is a given, but what are some other fees you could incur? It’s important that you consider the
certificate of title
, vehicle registration
, plate transfer, and documentation fees when calculating your total budget.This is how the costs line up in South Dakota:
Fee | Average cost |
|---|---|
Sales tax | 4% + local/county tax |
Registration fee | 4% of purchase price + $50 if electric |
Title fee | $10 |
Plate transfer | $25 |
Documentation fee | $115 |
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How to find affordable car insurance in South Dakota
We still have to talk about the final cost to factor in when purchasing a car, and it’s a big one—
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FAQ
How much is sales tax on a used car in South Dakota?
Whether your car is brand new or used, you’ll pay the same in sales tax. Vehicles in South Dakota are subject to the 4% statewide sales tax, plus any local or county taxes.
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