Buying a car in South Dakota

Every figure below is sourced to South Dakota’s own revenue or motor vehicle publications and dated. Estimates only.

South Dakota at a glance

State sales tax
4%
Local tax is added on top in most states — treat this as a floor.
Trade-in credit
Reduces your tax
You are taxed on the price less your trade-in allowance.
Dealer doc fee
Not confirmed
We have not confirmed a cap for this state, so we do not claim one.
Title and registration
$10.00
$10.00 title.

Local tax in South Dakota

This 4% is a MOTOR VEHICLE EXCISE TAX under SDCL ch. 32-5B, not the ordinary sales tax, and it is collected by the county treasurer at titling — no title issues until it is paid. LEASES: for a closed lease the base is 'total consideration', meaning ALL lease payments plus rebates, net trade-in, extended warranties, administrative and acquisition fees. So the whole lease is taxed at the outset, but on the PAYMENT TOTAL rather than the vehicle's value — which is why leaseTaxMethod is omitted rather than set to full-value-upfront: that value would make a calculator apply 4% to the vehicle price and materially overstate the tax. Short-term rentals are different again, at 4.5% of gross receipts under SDCL 32-5B-20.