Do I need a sales tax permit in South Dakota?

Every retailer or other business in South Dakota whose receipts are subject to sales tax must apply to the Department of Revenue for a permit. South Dakota calls the registration a South Dakota sales tax license. For a seller outside South Dakota, the economic nexus threshold is $100,000 in sales in the previous or current calendar year. South Dakota's own rule sets which sales count toward it and when registration must follow.

Sales tax permit · South Dakota

How to Get a South Dakota Sales Tax License

The short answer. In South Dakota, the registration a business must hold before it makes sales subject to South Dakota sales tax is a South Dakota sales tax license, issued by the South Dakota Department of Revenue. South Dakota charges no fee for the sales tax license.

South Dakota Sales Tax License at a Glance

What South Dakota calls it	South Dakota Sales Tax License
Issued by	South Dakota Department of Revenue
How to apply	Not confirmed
Fee	Free
Security deposit or bond	May be required
Expires	Does not expire (see Renewal)
Several locations	One for each location (see Locations)
Local sales tax	Covered by the state registration
Threshold for sellers outside the state	$100,000 in sales

Read from the government sources listed at the foot of this page, last checked September 29, 2026. See the sources.

Who Needs a South Dakota Sales Tax License

Every retailer or other business in South Dakota whose receipts are subject to sales tax must apply to the Department of Revenue for a permit.

For a seller outside South Dakota, the economic nexus threshold is $100,000 in sales in the previous or current calendar year. South Dakota's own rule sets which sales count toward it and when registration must follow.

How to Apply

You apply to the South Dakota Department of Revenue. Go to South Dakota's registration page.

South Dakota requires your registration to be displayed at the place of business.

What It Costs

South Dakota charges no fee for the sales tax license.

South Dakota may require security, such as a bond or deposit. The Secretary of Revenue may, at its discretion, require a bond or other security for the sales tax, either before issuing the permit or as a condition of staying in business as a retailer.

Does It Expire?

The sales tax license does not expire. The permit is valid only for the business named on it at the place named on it, and a change of ownership or legal organization needs a new license.

More Than One Location

A business needs a separate sales tax license for each place of business in South Dakota. The Department may instead grant one statewide permit to a business that shows it can meet the filing and record-keeping rules for every location, and then issues a copy of it for each location.

Local Sales Taxes in South Dakota

City sales, use and gross receipts taxes, and tribal taxes under the state's tax collection agreements, are reported on your South Dakota sales tax return.

More for South Dakota Businesses

South Dakota resale certificate, for buying inventory for resale.
Sales tax nexus checker, to see which other states your sales may require you to register in.
South Dakota LLC guide, for forming and running an LLC in the state.
LLC guide for eBay sellers in South Dakota, for selling only through a marketplace.

Frequently Asked Questions

: Every retailer or other business in South Dakota whose receipts are subject to sales tax must apply to the Department of Revenue for a permit. South Dakota calls the registration a South Dakota sales tax license. For a seller outside South Dakota, the economic nexus threshold is $100,000 in sales in the previous or current calendar year. South Dakota's own rule sets which sales count toward it and when registration must follow.
: South Dakota charges no fee for the sales tax license. South Dakota may require security, such as a bond or deposit. The Secretary of Revenue may, at its discretion, require a bond or other security for the sales tax, either before issuing the permit or as a condition of staying in business as a retailer.
: The sales tax license does not expire. The permit is valid only for the business named on it at the place named on it, and a change of ownership or legal organization needs a new license.
: A business needs a separate sales tax license for each place of business in South Dakota. The Department may instead grant one statewide permit to a business that shows it can meet the filing and record-keeping rules for every location, and then issues a copy of it for each location.
: City sales, use and gross receipts taxes, and tribal taxes under the state's tax collection agreements, are reported on your South Dakota sales tax return.

This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It reports what each state's law and tax agency say about the registration a business holds before it makes taxable sales, with the sources this page cites. It cannot tell you whether your own business must register: that turns on what you sell, where you sell it from, and how much you sell into the state, and fees, security rules and thresholds change between our reviews. Confirm your own position with the tax agency named on this page before you start selling.

Sources

Each entry below is a document recorded in our verified South Dakota sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.

sdlegislature.gov/Statutes/10-45-24SDCL 10-45-24, Application for retailer permit
sdlegislature.gov/Statutes/10-45-25SDCL 10-45-25, Issuance of retailer permit, display, effective until canceled or revoked
sdlegislature.gov/Statutes/10-45-26SDCL 10-45-26, Refusal of permit, bond to secure payment of tax
sdlegislature.gov/Statutes/10-64-2SDCL 10-64-2, Sellers without physical presence required to remit
sdlegislature.gov/Statutes/10-52-4SDCL 10-52-4 and 10-52-2, municipal non-ad valorem taxes, state administration
sdlegislature.gov/Statutes/10-52A-3SDCL 10-52A-3, Department to administer municipal gross receipts tax
dor.sd.gov/media/qn3a1y31/license-requirements-for-sales-use-contractors-excise-tax.pdfLicense Requirements for Sales, Use & Contractor's Excise Tax (Tax Fact, August 2025)
dor.sd.gov/media/yh0n3oc2/remote-seller-bulletin.pdfRemote Seller Bulletin (August 2025)
dor.sd.gov/media/avyep2sr/2026-7_sales-use-tax-guide.pdfSales and Use Tax Guide (July 2026)
dor.sd.gov/media/5cnnz2ww/tribal.pdfTribal Tax Fact (July 2023)

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Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.