Sioux Falls hotel guests pay roughly 12.5% in combined lodging taxes, including a 6% state municipal lodging facility tax, the 4.5% state sales tax, and a 2% Sioux Falls municipal sales tax on rooms.
South Dakota imposes a state sales and use tax (4.5%) and a 1.5% tourism tax on lodging under SDCL Ch. 10-45 and 10-45D. Sioux Falls layers a 2% general municipal sales tax and a 1% municipal gross receipts tax on lodging, prepared food, and admissions, producing an effective hotel tax of roughly 12.5% on each room night. Short-term rentals booked through Airbnb or VRBO are subject to the same lodging taxes; platforms typically collect and remit on behalf of hosts. Revenue funds tourism marketing through Experience Sioux Falls and the Convention and Visitors Bureau as well as general city services.
Hotels and STR hosts that fail to register, collect, or remit lodging taxes face SD Department of Revenue assessments, penalties, interest, and possible loss of city business licensing or STR registration.
Sioux Falls, SD
South Dakota classifies business activity for sales-and-use tax under SDCL Ch. 10-45, with Sioux Falls layering a 2% municipal sales tax plus a 1% gross rece...
Sioux Falls, SD
Short-term rental operators in Sioux Falls must collect and remit South Dakota sales tax (4.5%) and the Sioux Falls municipal sales tax (2%). STR income is a...
See how Sioux Falls's transient occupancy tax rules stack up against other locations.
Help us keep this page accurate. If you notice an error or outdated information, let us know.