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South Dakota · 2027 and beyond
South Dakota in 2027 and beyond: what is already law, and what is still open
No tax measure on the ballot. The sales tax returns to 4.5% on July 1, 2027, paying for a school levy cut on homes. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from South Dakota Department of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a South Dakota practitioner
No tax measure on the ballot. The sales tax returns to 4.5% on July 1, 2027, paying for a school levy cut on homes. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in South Dakota. Nothing voted on that day changes what a South Dakota household pays.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | There is no income tax. The state sales tax is 4.2%. |
| Starting with tax year 2027 | The state sales tax returns to 4.5% on July 1, 2027; the returning 0.3 point is dedicated to lowering the school levy on owner-occupied homes. |
| The school levy on owner-occupied homes is cut for taxes payable in 2027 (HB 1051). | |
| Six counties, including Lincoln, Pennington and Lawrence, add a 0.5% sales tax on January 1, 2027 for property tax relief. | |
| 2028 and later, or conditional | Growth in the assessed value of owner-occupied homes is capped at 3% a year for taxes payable 2027 through 2031. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other South Dakota articles.
What to watch
The 2027 levy certification, which confirms the school levy figures. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your most recent property tax bill or assessment notice
- Your 2026 federal return, once filed, to set 2027 withholding and estimated payments against it
- Any notice from the county or the state about a 2027 exemption or rate change
Questions people ask
Does anything here change the return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
South Dakota, after the election
No tax measure on the ballot. The sales tax returns to 4.5% on July 1, 2027, paying for a school levy cut on homes.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- South Dakota DOR: Sales & Use Tax for individuals (4.2% rate, municipal tax up to 2%, 1% gross receipts tax, use tax)
- South Dakota DOR: Sales & Use Tax for businesses (services taxable, licensing)
- South Dakota DOR: Contractor’s Excise Tax (2%)
- South Dakota DOR: Property Tax 101 (assessment date, 85% equalization, payment halves)
- South Dakota DOR: 2026 Property Tax Reduction Programs (SB 216, SB 245, SB 96, sales tax sunset)
- South Dakota Legislature: HB 1051 (2026), enrolled, school district general fund levies for taxes payable 2027
- South Dakota Legislature: SB 245 (2026), enrolled, homeowner property tax reduction fund
- South Dakota Legislature: SB 216 (2025), assessment growth cap and revenue limit