Taxes on Business Income in South Dakota

South Dakota is an extremely tax-friendly state. Only banks and financial institutions are subject to corporate income tax. And, there is no personal income tax.

The state of South Dakota does not have a general corporate income tax. The only corporations that are subject to income taxes are banks and financial institutions. The rates range from 6 percent on net income less than $400 million to 0.25 percent on income greater than $1.26 billion. The minimum tax is $500 per business location.