Taxes in Sturgis
Sturgis's tax picture runs through South Dakota's real, favorable statewide structure, plus a real, distinct, dramatic annual revenue surge tied to the Sturgis Motorcycle Rally.
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Learn moreNo state individual income tax
South Dakota is one of only 9 US states with no state individual income tax, applying fully to Sturgis residents.
Sturgis's combined 6.2% sales tax rate, year-round
South Dakota's 4.2% state rate plus Sturgis's own 2.0% municipal rate combine to 6.2%, modestly above the statewide average combined rate of approximately 5.99%.
A real, distinct, substantial Rally-week tax-revenue surge
The 2025 Rally alone generated $1.58 million in combined state and municipal tax collections (up 13% year-over-year) -- a real, substantial, concentrated revenue event distinct from Sturgis's standard year-round tax picture.
Key takeaways
- No state individual income tax applies in Sturgis, as elsewhere in South Dakota.
- Sturgis's combined sales tax rate runs 6.2%, modestly above the SD statewide average.
- The Rally generates a real, substantial, distinct annual tax-revenue surge concentrated each August.
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