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Aircraft tax · United States

South Dakota aircraft sales and use tax

South Dakota charges a one-time 4 percent registration tax on an aircraft's purchase price in place of sales tax. Parts and repairs are taxed, and every aircraft operated in the state registers each year for a fee set by weight, halved for aircraft ten years old or more.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in South Dakota?

Taxed. A four percent original registration tax on the purchase price, three percent for aircraft built and used only for agriculture, paid to the Department of Transportation with the first South Dakota registration. Aircraft subject to it are exempt from sales and use tax. A South Dakota-registered aircraft taken in trade is deducted from the price.

  • In addition to all other registration fees paid to the department, an additional original registration tax of four percent, based upon the purchase price of the aircraft, shall be paid to the department, along with the application for the original registration of an aircraft.

    South Dakota Codified Laws, SDCL 50-11-19 · checked October 18, 2026

  • For an initial registration of aircraft manufactured and used exclusively for agricultural purposes, the registration tax under this section is three percent.

    South Dakota Codified Laws, SDCL 50-11-19 · checked October 18, 2026

  • Aircraft subject to the tax imposed by this chapter are exempt from taxes imposed by chapters 10-45 and 10-46.

    South Dakota Codified Laws, SDCL 50-11-19 · checked October 18, 2026

  • For an aircraft purchase, sale, or transfer, the total consideration for the aircraft whether received in money or otherwise less the value of any aircraft taken by the seller as trade, if the aircraft traded was registered in South Dakota.

    South Dakota Codified Laws, SDCL 50-11-19.1(1) · checked October 18, 2026

Do you owe use tax on an aircraft bought outside South Dakota?

Depends. An aircraft operated in South Dakota must be registered within thirty days, and the four percent tax applies to any aircraft not previously registered here. A person moving to South Dakota gets credit for a similar original registration tax paid in the old state, if that state grants the same to South Dakota residents.

  • A person who fails to register an aircraft within thirty days after it is operated in this state is guilty of a Class 2 misdemeanor.

    South Dakota Codified Laws, SDCL 50-11-9 · checked October 18, 2026

  • In addition to all other registration fees paid to the department, an additional original registration tax of four percent, based upon the purchase price of the aircraft, shall be paid to the department, along with the application for the original registration of an aircraft.

    South Dakota Codified Laws, SDCL 50-11-19 · checked October 18, 2026

  • Aircraft, owned by a person coming into this state from another state for the purpose of making the person's home within this state, and registered in the other state, are exempt from the additional original registration tax of this state to the extent of a similar additional original registration tax previously paid in the other state upon the purchase price of the aircraft.

    South Dakota Codified Laws, SDCL 50-11-20(1) · checked October 18, 2026

What aircraft sales tax exemptions does South Dakota have?

Depends. Nonresidents registered at home may fly in South Dakota up to ninety days a year without registering, if not doing intrastate commercial work. Aircraft in regularly scheduled interstate or foreign commerce, and aircraft under a dealer certificate, are exempt from sales and use tax. Seasonal agricultural applicators from reciprocal states are exempt from the registration tax.

  • Any aircraft of any resident of another state, and any nonresident person, having complied with the registration requirements of that state, may be operated or operate within this state for a period of not more than ninety days in any one year without complying with this chapter if the aircraft or person is not engaged in any intrastate commercial activity within this state, and that under the laws of the state of the person's residence, like exemptions and privileges are granted to aircraft owned by residents of this state and resident persons of this state duly registered under the laws of this state.

    South Dakota Codified Laws, SDCL 50-11-27 · checked October 18, 2026

  • Aircraft used under a use stamp or dealer certificate, or engaged in regularly scheduled flying consisting of an act of interstate or foreign commerce, are exempt from the taxes imposed by chapters 10-45 and 10-46.

    South Dakota Codified Laws, SDCL 50-11-19 · checked October 18, 2026

Are aircraft rentals taxed in South Dakota?

Not clearly published. South Dakota taxes leases and rentals generally, but aircraft subject to the registration tax are exempt from sales and use tax, and no Department guidance says which rule governs aircraft rental charges.

Is flight instruction taxed in South Dakota?

Not clearly published. South Dakota taxes many services, and no Department of Revenue guidance or rule we found says whether flight instruction, or the aircraft time inside a lesson, is taxed.

The state's published guidance does not clearly answer this.

Are aircraft parts and maintenance labor taxed in South Dakota?

Taxed. Parts and repairs to an aircraft, and items attached after it is registered, are subject to state and municipal sales tax.

Does South Dakota register or tax aircraft every year?

Taxed. Every aircraft operated in South Dakota pays an annual registration fee by maximum take-off weight, from $25 for 1,500 pounds or less to $300 for 15,001 pounds and over. Aircraft ten years old or more pay half; newly registered aircraft bought on or after July first pay half and on or after October first a quarter.

  • There shall be paid to the secretary of transportation at the time of the registration of an aircraft an annual registration fee for each such aircraft based upon its maximum permissible take-off weight to be computed as follows:

    South Dakota Codified Laws, SDCL 50-11-12 · checked October 18, 2026

  • 0 -- 1,500 $ 25

    South Dakota Codified Laws, SDCL 50-11-12, fee table · checked October 18, 2026

  • 15,001 and over 300

    South Dakota Codified Laws, SDCL 50-11-12, fee table · checked October 18, 2026

  • If any aircraft, according to the manufacturer's records as to date of manufacture, was ten years old or more on January first of the year for which registration and fee is required, the fee required by § 50-11-12 shall be one-half of the fee ordinarily prescribed.

    South Dakota Codified Laws, SDCL 50-11-14 · checked October 18, 2026

  • The fee for registering any theretofore unregistered aircraft purchased on or after July first of any year shall be one-half the amount prescribed by § 50-11-12 and, as to such aircraft purchased on or after October first of any year, one-fourth of such prescribed amount.

    South Dakota Codified Laws, SDCL 50-11-15 · checked October 18, 2026

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