Car sales tax in South Dakota: the 4% excise tax
South Dakota car tax = 4% × (purchase price − trade-in). A $38,000 pickup with a $12,000 trade-in owes $1,040. The excise tax replaces sales tax, so no city sales tax is added.
SDCL 32-5B-1 sets a 4% excise tax on the purchase price of any motor vehicle bought for use on South Dakota roads, and says it's charged "in lieu of" the state and municipal sales taxes. Dealers don't collect it. You pay it to the county treasurer when you apply for title and registration. That's also why a South Dakota dealer's buyer's order shows sales tax on add-ons and services but not on the vehicle itself.
Trade-ins count on every sale
Many states limit trade-in credit to dealer sales or new cars. South Dakota doesn't. SDCL 32-5B-4 deducts the trade-in value from the price in all three situations: a new vehicle, a used vehicle from a licensed dealer, and a private sale where a vehicle is taken in trade. In a private deal, buyer and seller list the trade on the bill of sale.
When no excise tax is due
- Old, cheap cars: a vehicle eleven or more model years old sold for $2,500 or less before trade-in.
- Family transfers: transfers without payment between spouses, parent and child, or siblings. The $10 title fee still applies.
- Inheritance: vehicles inherited or left by bequest.
- Returning residents: a former resident coming back with a vehicle they already paid South Dakota excise tax on.
- Tax already paid elsewhere: under SDCL 32-5B-11, no tax is owed if you already paid sales, use or excise tax on the vehicle to South Dakota or another state, as long as that tax was at least as much. Bring a dealer affidavit, bill of sale or receipt as proof. Without proof, the treasurer charges 4% of the vehicle's retail value.
License plate fees by weight and age
Non-commercial plates are priced per month by weight, with a 30% reduction once the vehicle is 10 years or older:
| Weight | 0–9 years (12 months) | 10+ years (12 months) |
|---|---|---|
| Up to 2,000 lbs | $36.00 | $25.20 |
| 2,001–4,000 lbs | $72.00 | $50.40 |
| 4,001–6,000 lbs | $108.00 | $75.60 |
| Over 6,000 lbs | $144.00 | $100.80 |
Registrations renew in a month set by the first letter of your last name. A and B renew in January, C–E in February, F, G and J in March, H, I and O in May, K and L in June, M and N in July, P–R in August, S in September and T–Z in November. Pickups over 6,000 lbs may register by gross weight instead. Electric vehicles charged from an external source pay an extra $100 each year.
Title and other fees
| Fee | Amount |
|---|---|
| Title | $10.00 |
| Lien notation | $10.00 |
| Technology fee (since July 1, 2025) | $2.00 |
| Solid waste fee | $1.00 |
| Highway patrol fee | $1.00 |
| Plate mailing / registration mailing | $12.00 / $2.50 |
| Non-resident administrative fee | $100.00 |
The $100 administrative fee applies to people titling a vehicle in South Dakota without a South Dakota driver's license or ID and without a physical South Dakota address. Counties can also add a wheel tax, which the Department of Revenue lists by county.
Worked examples
$38,000 pickup (4,001–6,000 lbs) with a $12,000 trade-in
- Excise tax: ($38,000 − $12,000) × 4% = $1,040.00
- Title $10 + state fees $4 + plates $108 = $122
- Total before any wheel tax: $1,162.00
Private sale: a 12-year-old car for $2,200
- Eleven or more model years old and $2,500 or less, so it's exempt from excise tax
- You pay only the title, state fees and plates: $10 + $4 + $50.40 (2,001–4,000 lbs, 10+ years) = $64.40
Deadlines and penalties
Title and register within 45 days of the purchase date. Private sellers must give you a free 45-day seller's permit, and you can buy a 5–15 day permit at $1 a day if you need more time. Interest and penalties are counted from the purchase date:
- After 45 days: interest of 1.25% of the tax or $5, whichever is greater, for the first month, then 1.25% a month
- After 60 days: a one-time penalty of 10% of the tax or $10, whichever is greater
- A late title application penalty of $1 a week past the 45 days, up to $50
Frequently asked questions
Is South Dakota car sales tax different in Sioux Falls or Rapid City?
No. The 4% excise tax replaces state and municipal sales tax on vehicles, so it's the same in every city and county. Only the county wheel tax varies.
Do I pay South Dakota tax on a car bought in Minnesota or Iowa?
If the other state charged you tax at least equal to South Dakota's 4%, there's nothing more to pay here. Bring proof of payment. If it charged less, expect to pay the difference.
Do dealers collect the excise tax?
No. South Dakota dealers aren't required to collect it. You pay it to the county treasurer with your title application.
Sources
- SD Department of Revenue: Cars, trucks and vans
- SD Department of Revenue: Title, fees and registration
- SD DOR: Non-commercial vehicle license fee schedule (PDF)
- SDCL 32-5B-1, 32-5B-2, 32-5B-4 and 32-5B-11: Motor vehicle excise tax
This calculator gives an estimate. Your county treasurer calculates the final amount. How we calculate