Just How Tax-Friendly is South Dakota?
In some states, 2021 was a big year for state tax reform. Here in South Dakota, Governor Kristi Noem stated in her State of the State Address proposed to legislators some changes of her own.
“South Dakota is already among the most business-friendly states in America. With this action, we will make it even easier to do business here,” said Governor Kristi Noem. “We also guarantee the right of our people to keep and bear arms. It will not cost you a penny to exercise your Second Amendment rights in South Dakota.”
Noem asked for a half percentage point cut in the state sales tax from 4.5% to 4% over the next two years. In February state lawmakers rejected the proposal.
When you look across the country, seven friendly states in the U.S. do not have a state income tax and South Dakota is one of them. Alaska, Florida, Nevada, Tennessee, Texas, and Wyoming are in that same category.
As a business owner here are some South Dakota tax facts you should know:
- No state income tax
- No corporate income tax
- No personal property tax
- No gross receipts tax
- No inheritance tax
- No estate tax
If you're wondering how long into the year the South Dakota workforce works before they have earned enough money to pay all federal, state, and local taxes for the year, it's April 7. Otherwise, known as Tax Freedom Day.
Source: Tax Foundation.org
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