South Dakota car tax
South Dakota has no yearly car tax based on value. Registration is a flat fee by weight and age. When you title a car you pay a one-time 4% motor vehicle excise tax in place of sales tax.
No yearly car tax; only registration fees.
Buying a car in South Dakota: one-time tax
South Dakota motor vehicle excise tax — 4%. Your trade-in is subtracted before tax.
Gifts between spouses, parents and children, and siblings are exempt.
Registration and due dates
Registration is a flat fee by weight and age, roughly $30–$120 a year, plus county fees.
No yearly car tax. Registration renews every year.
Cut what your car costs in South Dakota
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
What tax do I pay buying a car in South Dakota?
A 4% motor vehicle excise tax on the purchase price.
Is there a yearly car tax?
No. Only registration fees.
Can I deduct South Dakota car taxes on my federal return?
Generally no. South Dakota has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax. Sales tax on the purchase can be deducted instead of income tax if you itemize.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.