South Dakota Capital Gains Tax
South Dakota levies no state income tax, so capital gains are not taxed at the state level in South Dakota. Whether you sell shares, a second property or other investments, there is no South Dakota state capital gains tax to pay. Federal capital gains tax still applies: the IRS taxes long-term gains (assets held over a year) at preferential rates and short-term gains at ordinary income rates. This page confirms, from the South Dakota Department of Revenue, that South Dakota has no state income tax and therefore no state capital gains tax, and links the federal capital gains calculator and the South Dakota sales and property tax pages so you can see your full tax position.
South Dakota has no state income tax, so there is no South Dakota capital gains tax. Federal capital gains tax still applies.
How South Dakota taxes capital gains
South Dakota has no state income tax, so capital gains are not taxed at the state level.
South Dakota capital gains tax: frequently asked questions
Does South Dakota tax capital gains?
No. South Dakota levies no state income tax, so capital gains are not taxed at the state level. Federal capital gains tax still applies; see the IRS for federal long-term and short-term rates.
Official sources
- South Dakota no income tax confirmation: South Dakota Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the South Dakota Department of Revenue.