The South Dakota business person enjoys:
- No corporate income tax
- No personal income tax
- No personal property tax
- No business inventory tax
- No inheritance tax
What makes the state such a tax haven? There’s no personal or corporate income tax — and South Dakota is one of a shrinking number of states that doesn’t levy a “gross receipts” business tax on revenue. Anything you ring up in sales or profit, you get to keep.
“We also have a large work force that has a very strong work ethic,” Smolik says. “We always tout that as a Midwest thing or a South Dakota thing, but we’re known for having hard workers.”
Individuals fare far better than other states as well:
Currently estimated at 7.9% of income, South Dakota’s state/local tax burden percentage ranks well below the national average of 9.7%. Taxpayers in South Dakota pay $3,079 per capita in state and local taxes.