Taxes / Seller's permits by state / South Dakota
Do I need a seller's permit to sell on eBay or Poshmark in South Dakota?
Yes if you're in South Dakota: the Department of Revenue says all sellers with a physical presence in the state must hold a sales tax license regardless of how much they sell, while a licensed marketplace remits the tax on your sales through it; an out-of-state marketplace seller may need a license only if it meets the remote seller law. Your own website, flea market or craft show sales are covered by the same license, and you remit tax on everything you sell outside a licensed marketplace; you apply through the Department's online Tax License Application, and the pages checked don't state a fee.
South Dakota calls it a sales tax license, issued by the South Dakota Department of Revenue.
General information, not tax or legal advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
South Dakota in short
- Sell only on marketplaces that collect the tax:
- Yes: the state says to register
- Also sell direct (own site, Facebook, flea market):
- Yes: the state says to register; fee not stated as one figure (see below)
- Resale certificate:
- Streamlined Sales and Use Tax Agreement Certificate of Exemption
- Garage and occasional sales:
- Exempt
If you sell only on eBay, Poshmark and other marketplaces
The Department says all sellers with a physical presence in South Dakota continue to be required to hold a sales tax license and remit tax regardless of sales or transactions; for a South Dakota business selling through a marketplace, the licensed marketplace remits the tax on those sales and the business remits on all other sales. Marketplace sellers outside South Dakota that meet the remote seller law (over $100,000 of gross sales into the state) may also be required to get licensed.
The rule: SDCL ch. 10-64 and 10-65.
"All sellers with a physical presence in South Dakota continue to be required to hold a sales tax license and remit sales tax regardless of the amount of sales or number of transactions."
South Dakota's state sales and use tax rate is 4.2%, applied to taxable products and services, with municipal taxes reported on the same return. Since March 1, 2019, marketplace providers that meet the threshold license and remit tax on all sales they facilitate into South Dakota.
Sources: Marketplace tax fact (July 2025); Sales & Use Tax; Sales and Use Tax Guide (July 2026).
If you also sell direct: your own site, Facebook, flea markets, consignment
Any business with a physical presence in South Dakota must be licensed for sales tax collection, and the minimum thresholds don't apply to it. A business without a physical presence must license once it has more than $100,000 of gross sales into South Dakota in the previous or current calendar year.
- Fee:
- The pages checked do not state a fee for a sales tax license.
"Any business with a physical presence in South Dakota is required to be licensed for sales tax collection."
Sources: Sales & Use Tax; Sales and Use Tax Guide (July 2026); Marketplace tax fact (July 2025).
Resale certificate: buying inventory without paying sales tax
- Do you need your own permit to give one?
- Not in every case: see the state's rule below
Businesses buying products for resale give the seller an exemption certificate listing their tax permit number; South Dakota uses the Streamlined certificate, which can be a single-purchase or blanket certificate and doesn't expire unless its information changes. A buyer from a state that doesn't issue sales tax numbers lists its FEIN, or the owner's driver's license or state ID number if it has neither.
Thrift stores, estate sales and yard sales
The state pages we checked don't say anything specific about using a resale certificate at a thrift store, estate sale or yard sale. A certificate is given to a seller who would otherwise charge you tax, so whether a particular store takes one is between you and that seller; ask before you buy.
Misusing a certificate
A purchaser who knowingly buys items for resale that it knows won't be resold, or gives an invalid exemption certificate to evade the tax, must pay the use tax and may be guilty of a Class 1 misdemeanor and fined up to 50% of the tax owed.
"Businesses that purchase products or services for resale must provide an exemption certificate listing their tax permit number to the seller."
Sources: Exemption Certificate tax fact (July 2023); Sales and Use Tax Guide (July 2026).
Garage sales, yard sales and other occasional sales
Exempt. Casual or occasional sales by an individual who is not engaged in the business of selling at retail are not taxed, unless their number, volume or frequency indicates evasion of the tax; each case stands on its own facts, and taxability is the rule rather than the exception. A sale by or aided by an auctioneer or consignee is not a casual sale.
The rule: ARSD 64:06:01:06 and 64:06:02:06.03.
"Casual or occasional sales made by an individual who is not engaged in the business of selling at retail are not subject to the tax."
Sources: Administrative Rules of South Dakota, Article 64:06, Sales Tax.
Worked examples
State tax on a $100 direct sale
At the 4.2% state rate, a $100 taxable sale carries $4.20 of South Dakota state sales tax, plus any municipal tax where the buyer receives it; municipal rates are left out here.
Garage sale or roadside stand
The Department's rule gives two examples: a family selling household items at a garage sale before moving does not collect or remit tax, while someone who sells home-grown vegetables at a roadside stand every summer holds himself out as a retailer and must collect and remit.
Misusing a resale certificate
A buyer who claims resale on $200 of supplies it uses itself, avoiding $8.40 of state tax at 4.2%, owes that use tax and may be fined up to 50% of the tax owed, or up to $4.20, on top of it; the Department's tax fact says the offense may be a Class 1 misdemeanor.
Edge cases and details
- Marketplace providers aren't required to give sellers a resale certificate; instead they must post and give sellers notice that South Dakota tax is being reported and remitted on all marketplace sales, including the date they began.
- If a marketplace you sell through is not licensed, the Department says a South Dakota business remits the tax on all its sales into the state, so check with the Department if you are unsure.
- Fees a marketplace charges sellers only when a sale is made are generally exempt, but flat monthly fees for posting or using a platform are taxable services the marketplace owes tax on.
- Out-of-state buyers from states without sales tax permits, such as a Montana antique dealer buying in South Dakota to resell, list a FEIN or driver's license number on the exemption certificate.
What to do
- Based in South Dakota: hold a sales tax license through the online Tax License Application even if most sales go through marketplaces, and remit tax on your direct sales.
- Out of state: add up gross sales into South Dakota across all channels for the current and prior year and compare them with the $100,000 remote seller threshold.
- Buying inventory: give suppliers the Streamlined exemption certificate listing your South Dakota tax permit number.
- If you sell personal items often or advertise regularly, ask the Department or a tax professional whether your sales are still casual.
Common questions
Do South Dakota sellers who only use marketplaces need a license?
The Department's marketplace tax fact says all sellers with a physical presence in South Dakota are required to hold a sales tax license, regardless of sales volume; the licensed marketplace remits the tax on sales made through it.
Is a garage sale taxable in South Dakota?
No, under ARSD 64:06:01:06 a casual or occasional sale by an individual not in the retail business isn't taxed; the Department's own example is a family's moving garage sale.
Related
- Seller's permits by state: marketplace-only sellers, resale certificates and garage sales on one table
- South Dakota: marketplace sales tax and 1099-K rules
- South Carolina: do you need a seller's permit?
- Tennessee: do you need a seller's permit?
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax or legal advice
This page summarizes South Dakota's own published pages, rules and statutes as read on . It doesn't say whether you must register, what you should file or whether you owe tax: that turns on your own sales, where you sell and what you buy. Rules change. Check with a tax professional, or ask the South Dakota Department of Revenue directly.
Sources
Official pages this page is built from, with the day each was read.
- South Dakota Department of Revenue: Marketplace tax fact (July 2025); read . Physical-presence sellers hold a license; licensed marketplace remits; notice instead of resale certificate; marketplace fee taxability.
- South Dakota Department of Revenue: Sales & Use Tax; read . Physical presence licensing; remote and marketplace thresholds; online Tax License Application.
- South Dakota Department of Revenue: Sales and Use Tax Guide (July 2026); read . 4.2% state rate; licensing; exemption certificate misuse.
- South Dakota Department of Revenue: Exemption Certificate tax fact (July 2023); read . Streamlined certificate for resale; ID numbers; misuse penalty.
- South Dakota Legislature: Administrative Rules of South Dakota, Article 64:06, Sales Tax; read . 64:06:01:06 casual or occasional sales; 64:06:02:06.03 auctioneer and consignee sales.
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