South Dakota sales tax codes and rates
South Dakota's state sales tax rate is 4.2%; county and city rates come on top and are not included. A Nefin company that sells into South Dakota gets 2 sales codes, each named after the line of the Form 2032 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under SD-2, and Nefin works out the use tax due.
South Dakota codes from the Form 2032
Each code is “SD-” plus the line it fills on the Form 2032. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| SD-5 | SD taxable sales 4.2% state (Form 2032 Line 5, net state sales taxable) | 4.2% |
| SD-3 | SD non-taxable sales: resale, exempt, out-of-state (Form 2032 Line 3) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| SD-2 | SD use taxable purchases (Form 2032 Line 2) | 0% |
South Dakota in the tax books
Nefin’s sales tax book has one row per invoice and one column per Form 2032 line; these are the South Dakota columns and the totals worked out from them.
Sales Tax Book
South Dakota - Form 2032
- [SD-5]Taxable sales, in Lines 1 and 5
- [SD-3]Non-taxable sales (Line 3)
Totals Nefin calculates
- [SD-1] Gross sales (Line 1)Sum of the net amounts in [SD-5] + [SD-3]
- [SD-5-TAX] State tax 4.2% on sales (Line 5 Tax Due, municipal excluded)Net amount × 4.2%, from [SD-5]
Use Tax Book
South Dakota - Form 2032
- [SD-2]Use taxable (Line 2)
Totals Nefin calculates
- [SD-5-TAX] State use tax 4.2% (part of Line 5 Tax Due, municipal excluded)Net amount × 4.2%, from [SD-2]
Frequently asked questions
What is the South Dakota sales tax rate?
The state rate is 4.2%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which South Dakota sales tax codes does Nefin set up?
2 sales codes from the Form 2032, for example SD-5 (SD taxable sales 4.2% state (Form 2032 Line 5, net state sales taxable)), SD-3 (SD non-taxable sales: resale, exempt, out-of-state (Form 2032 Line 3)).
How does Nefin handle South Dakota use tax?
Book a purchase on which the vendor charged no South Dakota tax under SD-2 (SD use taxable purchases (Form 2032 Line 2)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 4.2%.
Are these South Dakota codes official?
They are a starting point. Each code follows a line of the Form 2032, but check them against your return before you file, and edit them in Settings, VAT rates.