Taxes in Sioux Falls, South Dakota
Complete tax guide for Sioux Falls, SD. No state income tax, 1.28% property tax, 6.5% sales tax. Calculate your total tax burden.
State Income Tax
None
South Dakota
Property Tax
1.28%
Effective rate
Sales Tax
6.5%
Combined rate
Tax Burden
Low
Sioux Falls, SD Tax Overview
No state income tax; largest city; financial services hub
Population
192,517
Median Income
$63,218
Cost of Living
96.3 (100 = avg)
State Income Tax
None
Median Home Price
$275,000
Sioux Falls Tax Calculator
Pre-filled with Sioux Falls median: $63,218
Total Tax Burden in Sioux Falls
$10,384
Take-Home: $52,834 · Effective Rate: 16.43%
Federal Tax
$5,548
8.78% eff.
SD State
$0
0.00% eff.
FICA
$4,836
7.65% eff.
Take-Home
$52,834
83.57% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $63,218.00 | $5,268.17 |
| Federal Income Tax | -$5,547.66 | -$462.31 |
| South Dakota State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$3,919.52 | -$326.63 |
| Medicare (1.45%) | -$916.66 | -$76.39 |
| Take-Home Pay | $52,834.16 | $4,402.85 |
Property Tax in Sioux Falls
Median Home
$275,000
Annual Tax
$3,520
Monthly Tax
$293
Effective Rate
1.28%
Sales Tax in Sioux Falls
Combined Rate
6.5%
State Portion
~4.0%
Local Portion
~2.5%
The combined sales tax rate in Sioux Falls is 6.5%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.50 in sales tax.
Tax Burden Comparison
| Tax Type | Sioux Falls | South Dakota Avg | National Avg |
|---|---|---|---|
| Income Tax | None | None | 4.6% |
| Property Tax | 1.28% | ~1.28% | 1.1% |
| Sales Tax | 6.5% | ~6.5% | 7.12% |
| Overall Burden | Low | — | Moderate |
About Taxes in Sioux Falls
Sioux Falls has a population of approximately 192,517 residents with a median household income of $63,218. The cost of living index is 96.3 (3.7% lower than the national average of 100).
Local context: No state income tax; largest city; financial services hub
Tax burden classification: Low. Effective combined tax rate of 26.3% includes federal, state, FICA, property, and sales taxes for a typical Sioux Falls household.
Official Tax Resources for South Dakota
For authoritative South Dakota tax forms, filing deadlines, and the latest legislative updates, consult these official government resources:
- South Dakota Department of Revenue — official state revenue agency
- South Dakota Individual Income Tax Forms — current tax year forms and instructions
- IRS Federal Tax Forms and Instructions — federal income tax filing
Tax Saving Tips for Sioux Falls Residents
- South Dakota has no state income tax, meaning your income is only subject to federal taxes and FICA. Consider investing your tax savings into a Roth IRA for tax-free growth.
- Property tax in Sioux Falls (1.28%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,400 individual, $8,750 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in South Dakota
Sources & Methodology
Tax rate data on this page is compiled from official government sources and updated for the 2026 tax year. Calculations follow the IRS-published 2026 federal tax brackets, FICA rates (6.2% Social Security up to $176,100 wage base, 1.45% Medicare), and South Dakota state tax provisions. Property tax estimates use Sioux Falls's median home value of $275,000and the local effective property tax rate of 1.28%.
- • Federal tax brackets and standard deductions: IRS.gov
- • State income tax rates and brackets: South Dakota Department of Revenue
- • Median household income, home value, and demographics: U.S. Census Bureau ACS
- • Cost of living comparisons: U.S. Bureau of Labor Statistics CES
- • National average benchmarks: Tax Foundation state-level tax burden studies
Disclaimer: Estimates are for informational purposes only. Actual tax liability depends on filing status, deductions, credits, and individual circumstances. Consult a licensed tax professional or your state revenue agency for binding tax guidance.
Reviewed by LevyIO Tax Research Team · Published 2026-01-15 · Last updated 2026-04-30
Calculate Your Full South Dakota Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Sioux Falls, SD?
Sioux Falls, South Dakota has no state income tax. The property tax rate is 1.28% and the combined sales tax rate is 6.5%. No state income tax; largest city; financial services hub
How much is property tax in Sioux Falls?
The effective property tax rate in Sioux Falls is 1.28%. On the median home price of $275,000, this equals approximately $3,520 per year or $293 per month. This is above the national average of 1.1%.
What is the sales tax rate in Sioux Falls?
The combined sales tax rate in Sioux Falls is 6.5%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Sioux Falls's tax burden compare to other cities?
Sioux Falls has a low overall tax burden. The effective total tax rate for a median-income household is approximately 26.3%. The absence of state income tax significantly reduces the overall burden. Cost of living index is 96.3 (100 = national average).
Are there any local taxes in Sioux Falls?
Sioux Falls does not impose a separate local or city income tax. Residents pay no state income tax, federal income tax, and FICA (Social Security and Medicare). No state income tax; largest city; financial services hub