Is shipping taxable in South Dakota?
by January 9, 2024
Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
Do you charge your customers for shipping? If you do, you next need to determine if you should charge sales tax on those shipping charges. Some states consider shipping taxable, while others do not. Today we’ll look at shipping taxability in South Dakota.
Is shipping taxable in South Dakota?
Delivery charges (i.e. shipping charges) on taxable items are taxable. If what you are selling is tax-exempt, then you don’t need to charge sales tax on the shipping charges. If some items in the shipment are taxable and some are not, just calculate what percentage of the shipping charges apply to the taxable item(s) and charge sales tax on that.
Handling South Dakota shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common South Dakota scenario – that shipping and handling is taxable. However, if your business does not charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the South Dakota Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to not charge sales tax on South Dakota shipping. Learn more about how TaxJar treats shipping and handling here. To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Takeaway
South Dakota almost always requires sellers to charge sales tax on shipping charges. The only time you wouldn’t charge sales tax on shipping charges are when you are shipping a box full of non-taxable items. If some items are taxable and some are not, charge sales tax based on the shipping charges for the taxable items.
Have questions about shipping taxability in another state? Check out our “Is Shipping Taxable?” state-by-state guide.
Ready to automate sales tax? Sign up for a free trial of TaxJar today
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
