Buying a Car in South Dakota When You Live in Minnesota, Iowa or Nebraska

Where you pay tax when you buy in South Dakota

The rule of thumb: tax follows the state where the car is registered. South Dakota charges a 4% motor vehicle excise tax in place of sales tax, but the law applies it to vehicles bought for use on South Dakota roads and required to be registered here (SDCL 32-5B-1). If the car will be titled and plated in Minnesota, Iowa or Nebraska, you generally pay that state's tax at home instead of ours.

Your home state expects that tax even though you bought out of state. Minnesota's law, for example, taxes a vehicle bought "either in or outside" Minnesota if it has to be registered there (Minn. Stat. 297B.02). Trade-ins and payoffs change the math, so our title office will confirm how tax is handled on your deal before you sign.

Tell us which state the car will be registered in before we write up the deal. Minnesota, Iowa and Nebraska each want their paperwork a little differently, and getting it right up front saves you a second trip to your county office.

Karigan Zietz, Title Clerk

State-by-state rules, as of November 2026

Fees change, so each state's section below links to its official source.

Minnesota

Minnesota's motor vehicle sales tax is 6.875% of the purchase price, paid to a deputy registrar or Driver and Vehicle Services when the title transfers (Minnesota Department of Revenue, Motor Vehicle Guide). DVS lists typical transfer fees of $8.25 for the title, a $10 transfer tax, a $3.50 public safety vehicle fee, a $2.25 tech surcharge and a $12 filing fee (DVS, Buying or Selling a Motor Vehicle). Yearly registration tax is $10 plus a percentage of the original MSRP that shrinks as the vehicle ages (Minn. Stat. 168.013).

The 2026 statute gives a buyer 20 days after the title is assigned to apply for a Minnesota title (Minn. Stat. 168A.10), but some DVS materials still say 10 days, so don't wait. DVS will not issue a Minnesota title without proper ownership documents, such as the out-of-state title (DVS form PS2000A). Minnesota ended emissions testing in 2000 (Laws 1999, chapter 178).

Iowa

Iowa charges a fee for new registration of $10 plus 5% of the purchase price, paid to the county treasurer, and adds a 10% penalty on that fee if you file late (Iowa Code 321.105A). Apply at any county treasurer within 30 calendar days after purchase. The title fee is $30, plus registration prorated for the rest of the registration year (Iowa Code 321.46). For most cars and light trucks, the yearly fee is based on value and weight (Iowa Code 321.109).

Iowa DOT says to bring the certificate of title and an application signed by all owners, and it has a fee calculator (Iowa DOT, Register a vehicle). Its list does not include an inspection.

Nebraska

Nebraska's state sales and use tax rate is 5.5% (Nebraska Department of Revenue), plus local tax if your registration address has one. You submit the Form 6 tax statement and pay at the county treasurer or DMV within 30 days after purchase, or penalty and interest are added (Nebraska Form 6).

The county sheriff inspects vehicles brought into Nebraska from out of state, comparing the VIN with the title and noting the odometer, for a $10 fee (Nebraska DMV, Vehicle Inspection). A Nebraska title is $10, or $17 with a lien. The DMV asks for original proof of insurance and has a Vehicle Tax Estimator for registration costs (Nebraska DMV).

Driving it home on a temporary permit

South Dakota law lets a licensed dealer issue a temporary permit for up to 45 days. It covers driving on South Dakota highways for 45 days after the sale, or until you receive regular plates, whichever comes first (SDCL 32-6B-26). The state's dealer manual adds that these permits cannot be renewed (SD Department of Revenue, Dealer Manual).

The same manual gives a South Dakota dealer 45 days from the sale to deliver the title. Your home state's clock may be shorter, so start your paperwork the day you buy. Because the permit is issued under South Dakota law, our title office will confirm what you need for your drive home. Add the car to your insurance with its VIN before pickup day.

Flying in to Sioux Falls

If you'd rather fly in and drive home, we pick up fly-in buyers at Sioux Falls Regional Airport (FSD). Call sales to set your pickup time once your flight is booked.

Before you fly, settle three things: your out-the-door number, your financing and your insurance. Bring your driver license and your insurance agent's phone number. In winter, check road conditions for the drive home on SD511 before you leave the lot.

Rather not make the trip? We ship anywhere in the lower 48 states. See vehicle shipping for how it works.

Financing when you live out of state

You can apply for financing online before you visit. Approval, rate and terms depend on the lender and your credit, so we can't promise an outcome. Applying first lets you know where you stand before you book a flight.

Apply before you make the trip. Then we can talk through the numbers, with your home state's tax figured in, while you're still at your kitchen table.

Kevin Marlow, Finance Director

Get an out-the-door quote for your state

The fastest way to a real number is a phone call. Call sales at (605) 250-5016, Monday through Saturday, 8:30 AM to 6:00 PM. Tell us the vehicle, your state and the city or county you live in, and we'll walk you through the price plus what you can expect to pay at home. Prices exclude tax, title, license and a $259 documentation fee.