South Dakota is business friendly when it comes to tax climate, coming in at an impressive #2 in the Tax Foundation´s 2016 State Business Tax Climate Index. With no corporate or personal income taxes, no inventory tax, no inheritance tax, no personal property tax, and low sales tax, you can´t get much friendlier than that. According to the Tax Foundation, every type of firm in South Dakota has a lighter tax burden than the national average: 33% lower for the average firm. Businesses also benefit from low property and unemployment insurance taxes.
|South Dakota||Iowa||Minnesota||Nebraska||North Dakota||Wyoming|
|Property Tax Rate (per 1000)||$11.96||$14.29||$14.29||$15.66||$10.74||$21.75|
|Individual Income Tax||0.0%||9.0%||9.9%||6.8%||3.2%||0.0%|
|Corporate Income Tax||0.0%||12.0%||9.8%||7.8%||4.5%||0.0%|
The cost of living is better in Sioux Falls, thanks in part to no personal income tax, low real property and sales taxes, affordable housing and utility costs, and a favorable climate. The overall cost of living is 6% lower than the national average.Read More
|Overall Rank||Corporate Tax Rank||Individual Income Tax Rank||Sales Tax Rank||Unemployment Insurance Tax Rank||Property Tax Rank|
|Note: 1 is best, 50 is worst. Report shows tax systems as of July 1, 2014.,Source: Tax Foundation calculations.|