South Dakota: Marijuana Tax Handbook

South Dakota Marijuana Tax Rate

2025 South Dakota Marijuana Tax Handbook

Medical marijuana legal in South Dakota, but there is no cannabis sales tax for it.

South Dakota consumers are required to pay a 4.50% sales tax on every purchase of marijuana for personal use. There is also an additional excise tax of 15% on every purchase of marijuana for personal use.

About South Dakota Marijuana Tax

Recreational cannabis sales are subject to the statewide 4.5% sales tax in addition to the 15% excise tax. Medical and qualified patients are not taxed.

Medical marijuana sales will not be taxed in South Dakota. If recreational legalization bill Amendment A becomes active, after the Supreme Court pending ruling, adult-use sales will be subject to a 15% marijuana excise tax. The Legislature can alter this rate after November 3, 2024.

What is the most recent revenue statistic for South Dakota?

$29.3 Million

Revenue accrued are dispensed to cover costs associated with implementing the amendment, 50% of the remaining revenue was set aside to fund state public schools and 50% would be kept in the state's general fund

Is the South Dakota Marijuana Tax Weight-Based or Percentage-of-price-Based?

South Dakota's marijuana program uses a Percentage-of-price tax system. This means that the tax charged is calculated using the retail price of the Marijuana at the time of purchase.

Does South Dakota have a Controlled Substances Tax?

South Dakota declared as criminal, the unauthorized manufacture, distribution, counterfeiting or possession of marijuana and other controlled substances in the 2019 South Dakota Code Laws (SDCL)Title 22 - Chapter 42. Civil sanctions the Court may impose any amount not more than $10,000 which shall be remitted to a drug abuse prevention and rehabilitation program authorized under Chapter 34-3B-1

How do South Dakota's marijuana taxes compare to the states around it?

Note: It is illegal to transport marijuana accross state lines.

For more information about South Dakota Marijuana Taxes, visit the South Dakota Marijuana Tax page.