South Dakota Amazon Sales Tax
South Dakota — the Wayfair economic-nexus home state — enforces marketplace facilitator law since March 2019. Amazon collects all South Dakota sales tax at the current 4.2% state rate.
Overview
South Dakota's marketplace facilitator law took effect March 1, 2019. South Dakota is the state behind the landmark 2018 South Dakota v. Wayfair Supreme Court decision that established economic nexus nationwide. The state base sales tax rate is currently 4.2% (temporarily reduced from 4.5% effective July 1, 2023, and scheduled to revert to 4.5% on July 1, 2027). Municipalities add local taxes of up to about 2%, so the combined rate reaches roughly 6.2% in the highest jurisdictions. Amazon collects and remits South Dakota sales tax on every order shipped to a South Dakota address.
As the Wayfair home state, South Dakota originally set the model $100,000-or-200-transactions threshold, but it eliminated the 200-transaction prong effective July 1, 2023 — direct-seller nexus is now based on the $100,000 sales threshold alone. South Dakota also hosts a major Amazon fulfillment center in Sioux Falls (the roughly 3-million-square-foot FSD1 robotics facility opened in 2023).
For an Amazon-only (FBA) seller, South Dakota sales tax is collected and remitted automatically by Amazon, with no separate registration required for marketplace-facilitated sales. Sellers with other channels or in-state nexus should consult a tax professional, and note the 4.2% rate is set to rise to 4.5% on July 1, 2027. This is educational information, not legal advice.
What FBA sellers still need to know
No registration for ongoing Amazon-only sales — Amazon collects and remits. Direct or non-Amazon sellers exceeding $100,000 in gross sales into South Dakota in the current or prior calendar year must register and remit; the former 200-transaction threshold was eliminated effective July 1, 2023.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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