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South Dakota Grocery Tax (2026)

Restricted: Groceries taxed at the full 4.2% state rate with no offsetting credit — the only state to do so (rate set to revert to 4.5% on 7/1/2027 absent new law).

RestrictedVerified Jun 5, 2026

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Official source: dor.sd.gov →

General legal information, not legal advice — verify important decisions with a licensed attorney.

Grocery Tax in states bordering South Dakota

The same rule in each neighboring state LawLert has verified, from that state’s own official source.

IowaPermitted
Food and food ingredients ("grocery" food) are exempt from Iowa sales tax (Iowa Code 423.3(57)). Alcoholic beverages, candy, dietary supplements, soft drinks, tobacco, prepared food, and food sold through vending machines remain taxable.
Verified Jul 7, 2026 · Source: revenue.iowa.gov · Full Iowa rule →
MinnesotaPermitted
Food and food ingredients (groceries) are exempt from sales tax; candy, soft drinks, and prepared food are taxable.
Verified Jul 14, 2026 · Source: revenue.state.mn.us · Full Minnesota rule →
MontanaPermitted
Montana has no general statewide sales tax, so groceries are never subject to a state sales tax.
Verified Jul 15, 2026 · Source: revenue.mt.gov · Full Montana rule →
NebraskaPermitted
Food and food ingredients for human consumption are exempt from sales tax; prepared food and food sold through vending machines are taxable.
Verified Jul 16, 2026 · Source: revenue.nebraska.gov · Full Nebraska rule →
North DakotaPermitted
Food and food ingredients (groceries) are exempt from sales tax; prepared food, candy, dietary supplements, soft drinks, alcohol, and tobacco remain taxable.
Verified Jul 15, 2026 · Source: tax.nd.gov · Full North Dakota rule →
WyomingPermitted
Food for domestic home consumption (most grocery food) is exempt by statute; prepared food (e.g., restaurant meals) and alcoholic beverages are taxable.
Verified Jul 19, 2026 · Source: excise-tax-div.wyo.gov · Full Wyoming rule →

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