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South Dakota requires a state lodging license for whole-home short-term rentals: a vacation home license from the Department of Health, renewed every year with an inspection. Stays owe state sales tax plus a 1.5% tourism tax.
Yes, with a state lodging license. Cities and counties also regulate short-term rentals; Sioux Falls and Rapid City require local permits, and some towns limit where vacation homes can operate.
South Dakota licenses "vacation home establishments": a home rented in its entirety to transient guests. For tax purposes, stays under 28 days are taxable.
Yes. A whole home rented to guests needs a vacation home lodging license from the South Dakota Department of Health. The license runs January to December, is renewed every year and includes an inspection. You also need a sales tax license from the Department of Revenue, unless your platform collects all taxes for you. Many cities ask for proof of both before issuing a local permit.
Fewer than 28 consecutive days for the tourism tax; many cities use under 30 days.
Stays under 28 days owe 4.2% state sales tax (returning to 4.5% in July 2027) and a 1.5% state tourism tax, plus municipal sales and lodging taxes. Airbnb and Vrbo collect state and local sales taxes and the tourism tax on bookings made through them.
Lodge Compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.
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