South Dakota Vehicle Sales Tax & Fees [+ Calculator]
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Purchasing a new car anywhere is a pricey ordeal, and South Dakota is no exception.
What you might not be factoring into the total, out-the-door cost of the vehicle is the associated state taxes and fees.
Check this out to see how much you need to prepare to pay in sales taxes and fees on a new and used car in South Dakota.
Table of Contents
- How Much Is the Car Sales Tax in South Dakota?
- How to Calculate Sales Tax on a Car in South Dakota
- South Dakota Car Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car in South Dakota?
- Which City Has the Highest Tax? Which City Has the Lowest?
- Car Sales Tax for Trade-Ins in South Dakota
- Car Sales Tax on Private Sales in South Dakota
- Tax on Rebates & Dealer Incentives
- Other Taxes & Fees in South Dakota
- When Sales Tax Is Exempt in South Dakota
- South Dakota EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in South Dakota?
Car sales tax in South Dakota is 4% of the price of the car.
It's important to note that this does include any local or county sales tax, which can go up to 3.5%, for a total sales tax rate of 7.5%. However, the average total tax rate in South Dakota is 5.814%.
How to Calculate Sales Tax on a Car in South Dakota
To calculate the sales tax on a car in South Dakota, use this easy formula.
First, multiply the price of the car by 4%. That is the amount you will need to pay in sales tax on your car. Add this number to your car’s price to get the total cost of the car.
For example, if you purchase a car for $30,000, multiply that by 4% to get $1,200. That is how much sales tax you will pay on your car. Add that to $30,000 to get a total price of $31,200.
Calculate Car Sales Tax in South Dakota Example:
- Initial Car Price: $30,000
- Sales Tax Rate: 4%
- Trade-In Amount: 5,000
- Incentive/Rebate Amount: $2,000
Sales Tax = ($30,000 - $5,000) * .04
Sales Tax = $1,000
South Dakota Car Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car in South Dakota?
Yes, you will have to pay the 4% car sales tax on used cars purchased in South Dakota.
Which City Has the Highest Tax? Which City Has the Lowest?
The highest city car sales tax is in Roslyn, with a combined total tax of 7.5%.
The cities with the lowest car sales tax are in Shannon and Buffalo counties, with a combined total tax percentage of 4.5%.
Car Sales Tax for Trade-Ins in South Dakota
Car sales tax does not apply to trade-in vehicles in South Dakota. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.
For example, if you pay $30,000 for a new car but trade in your old one that’s valued at $4,000, your sales tax will only be applied to the $26,000 price.
Car Sales Tax on Private Sales in South Dakota
Cars sold in private sales in South Dakota are still subject to the car sales tax of 4%.
However, if the vehicle is 11 years or older and is sold for less than $2,500, no sales tax is applied.
Tax on Rebates & Dealer Incentives
Rebates and dealer incentives are still counted into the car sales tax in South Dakota. In other words, do not subtract the incentive amount from the car price before calculating the sales tax amount.
As an example, let's say you want to buy a new SUV for $40,000 and the dealer provides a $5,000 rebate. You still have to pay a sales tax on the full $40,000 amount.
Other Taxes & Fees in South Dakota
DMV/State Fees
The car sales tax in South Dakota doesn’t cover some other things like registration, title transfer, or other fees associated with the purchase of a new or used vehicle.
The other fees you’ll need to pay the DMV and the state include:
- Title Fee: $10
- Plate Transfer: $25
- Lien Notation Fee: $10
- Duplicate Title Fee: $10
- Registration Fee: 4% of sale plus $50 if electric
Dealership Fees
Dealerships usually charge a fee for things like paperwork and closing fees.
The average cost of these dealership fees is around $115 in South Dakota, with no statewide limit on how much a dealership can charge.
When Sales Tax Is Exempt in South Dakota
South Dakota offers exemption from car sales tax in multiple different situations, including:
Any motor vehicle sold or transferred that is eleven or more model years old and which is sold or transferred for $2,500 or less before trade-in- Any motor vehicle transferred as part of the sale of the assets of an LLC, corporation, or a limited or general partnership if the motor vehicle was previously titled, licensed, and registered in South Dakota
- Any motor vehicle repossessed by a secured party or lienholder in satisfaction of the debt
- Any damaged motor vehicle transferred to an insurance company in settlement of an insurance claim
- Any motor vehicle rented for twenty-eight days or less that is subject to the tax imposed by SDCL 32-5B-20
- Vehicles acquired by inheritance
- Vehicles transferred between spouses, between parents and children, and between siblings
South Dakota EV Rebates & Incentives
Qualified buyers could receive up to a $7,500 tax credit for purchasing an electric vehicle, but South Dakota does not offer any statewide incentives for electric vehicle purchases.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
