Cannabis Tax Rates in South Dakota
This state has legalized cannabis for medical use only.
Tax Rate Breakdown
Overview
South Dakota's medical cannabis program, operational since 2021, applies standard state and local sales taxes with no cannabis-specific excise tax. The state sales tax of 4.5% applies, plus local taxes. Notably, South Dakota voters approved both medical and recreational cannabis in November 2020, but the recreational measure (Amendment A) was struck down by the state Supreme Court on a technicality. A subsequent recreational ballot measure failed in 2022. The medical program continues to operate and grow.
Key Facts
- •No cannabis-specific excise tax
- •Standard 4.5% state sales tax plus local taxes apply
- •Recreational approved by voters in 2020 but overturned by state Supreme Court
- •Second recreational attempt failed at ballot in 2022
- •Medical program operational since 2021
Frequently Asked Questions
Is medical cannabis taxed in South Dakota?+
Why isn't recreational cannabis legal in South Dakota?+
What conditions qualify for medical cannabis in South Dakota?+
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Disclaimer: The information on this page is provided for educational and informational purposes only and does not constitute tax or legal advice. Cannabis remains illegal under US federal law. South Dakota tax rates and regulations are subject to change and may vary by local jurisdiction. Tax rates, revenue figures, and program details described here are based on publicly available information and may not reflect the most current regulations. Always verify current tax rates with official South Dakota state tax authorities and consult with a qualified tax professional. Cannabismarketcap does not guarantee the accuracy or completeness of any information presented.